While speaking at a J.P. Morgan investor conference, General Motors (GM) Chief Financial Officer (CFO) Paul Jacobson stated that the veteran automaker is still struggling with its electric vehicle production ramp. These included vehicles that were previously released, such as the Cadillac Lyriq and BrightDrop vans.
As per the CFO, Cadillac Lyriq production was at more than 1,000 units in July, far below the company’s expectations. Jacobson noted that General Motors has been affected by an issue with the company’s assembly of its electric vehicle battery modules, as noted in a Reuters report. Interestingly enough, this challenge was mentioned last week by GM CEO Mary Barra.
In early 2022, GM stated that it is expecting to build about 25,000 Lyriq units at its Spring Hill, Tennessee, plant. This target was not met, with GM delivering less than 2,400 Cadillac Lyriq SUVs to customers instead.
But while GM’s electric vehicle endeavors are challenging, the CFO noted that there is a bright spot in the company’s projects. This came in the form of Cruise, GM’s autonomous robotaxi service that’s currently deployed in cities such as San Francisco. The CFO noted that Cruise is entering a “big phase of operational expansion” with more than 400 robotaxis on the road.
Jacobson stated that Cruise has “largely solved all the technology challenges” and that the unit is still aiming to hit a revenue of $1 billion in 2025. The autonomous robotaxi unit also expects to grow its margins and reduce its costs as the service ramps further.