General Motors delays electric truck production at Orion Assembly

Shares of General Motors Company (NYSE: GM) are in the green at writing even after the automaker said it will take longer for it to start producing electric trucks at a Michigan factory.

When will production start now at Orion?

The multinational had announced plans of spending $4.0 billion on upgrading its Orion Assembly last year for the production of all-electric pickup trucks – beginning in 2024.

On Tuesday, though, the automaker said production of its next-gen electric vehicles at that plant is unlikely to start before late 2025.  

GM expects the delay to help it “better manage capital investments” and make “engineering improvements” aimed at making its electric vehicles more profitable.

The car company is scheduled to report its Q3 results next week. Consensus is for it to earn $1.88 a share versus $2.25 per share a year ago.

Watch here: https://www.youtube.com/embed/njwPfcGtq8o?feature=oembed

Is today’s update related to the UAW strike?

Note that the delay announced today has nothing to do with the ongoing negotiations between General Motors and the United Auto Workers, as per a GM spokesperson.

The United Auto Workers strikes could upend General Motors and Ford’s financial strategies, with a JP Morgan analyst estimating the walkout is costing GM and Ford $21 million a day and $44 million a day, respectively https://t.co/JsLwUjkBNL pic.twitter.com/uac8LN6jPF

— Reuters (@Reuters) October 17, 2023

UAW does, however, represent workers at the said Michigan facility. The New York listed firm will allow about 1,000 of its hourly employees at Orion Assembly to transfer to other plants in Michigan until the Orion conversion is completed.

General Motors has not so far confirmed if the delay affects its previously announced goals of producing 400,000 electric vehicles in North America between 2022 and mid-2024.

Earlier in October, General Motors said its U.S. sales were up 21% in the third quarter (read more). Wall Street currently has a consensus “overweight” rating on this automotive stock.

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