GM (NYSE:GM) Ramps up Bolt EV Production
General Motors Co (NYSE:GM) is ramping up production of Chevrolet Bolt electric cars at a factory north of Detroit and is on track to start delivering vehicles as promised by the end of the year, company officials said Friday.
GM will be 1st to offer an electric car with more than 200 miles of driving range at a starting price of less than $40,000 before tax credits. Silicon Valley electric car maker Tesla (NASDAQ:TSLA) said its entry in this new market segment, the Model 3, will launch sometime in Y 2017.
The Bolt and the Model 3 represent contrasting strategies to push EV (electric vehicles) into the mainstream of the US auto market.
Tesla CEO Elon Musk claims his company will overhaul its Fremont, California, factory to build as many as 500,000 Model 3 sedans and related models a year.
Tesla’s Model 3 design prototypes show a car aimed at German luxury sedans such as the Audi A3 or A4. Mr. Musk has said nearly 400,000 people have put down deposits on the Model 3, he does not mention that the deposit is $1-K per car and refundable on request if Tesla cannot deliver timely, there is a question about his ability to deliver according to some savvy industry analysts.
The $37,495 Checy Bolt, with a 238-mile range, is a compact, utilitarian hatchback with design features such as a thin front seat to increase rear-seat legroom, aimed at making the car attractive to drivers for ride-hailing services.
GM’s Maven car-sharing operation will receive Bolts to offer drivers who want to work for GM’s ride-hailing partner, Lyft. Company officials will not say how many customers have tried to order Bolts from dealers.
Sales of electric and plug-in hybrid cars represent just 1% of the US light vehicle market, despite government efforts to promote cleaner cars.
At GM’s Orion assembly plant, Bolts are rolling off the same final assembly line as gasoline-fueled Chevrolet Sonic sedans and hatchbacks. On Friday, every 4th or 5th car on the line was a Bolt.
The Orion plant is working 1 shift, building at a pace of about 90,000 cars a year.
GM redesigned the Orion assembly operation to allow workers to build either Bolts or Sonics and can shift production depending on demand, said Yves Dontigny, launch manager for the Bolt.
Looks like GM is setting up to dampen Tesla’s ambitious projections.
|NYSE:GM||31.16||4 November 2016||0.09||31||31.54||30.94||12,770,800|
|HeffX-LTN Analysis for GM:||Overall||Short||Intermediate||Long|
|Bearish (-0.30)||Very Bearish (-0.54)||Bearish (-0.31)||Neutral (-0.04)|
|NASDAQ:TSLA||190.56||4 November 2016||3.14||189||193.46||185.96||5,146,000|
|HeffX-LTN Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Bearish (-0.27)||Bearish (-0.29)||Bearish (-0.46)||Neutral (-0.07)|
Have a terrific weekend