GM CEO Mary Barra said during the company’s Q2 earnings call Tuesday that the automaker will bring back the Chevy Bolt EV, after announcing in April it was discontinuing its best-selling EV at the end of the year. Unlike the original Bolt, the new version will be built on GM’s Ultium EV platform.
“Our customers love today’s Bolt," Barra said on Tuesday’s earnings call. "It has been delivering record sales and some of the highest customer satisfaction and loyalty scores in the industry."
GM did not disclose any further additional details about the timeline for the Bolt’s return.
Although General Motors reported $44.7 billion in Q2 2023 revenue, a 25.1% year-over-year increase, new product investments and operating costs are squeezing the automaker's profit margins.
Despite the revenue jump and rising per-vehicle transaction prices, GM's EBIT-adjusted margin fell to 8.3% for the first six months of 2023 compared to 8.9% in the same period last year. The automaker cites rising costs, including its battery joint venture with LG and the lingering effects of the costly Chevy Bolt battery recall.
The automaker’s Q2 results also included a $792 million charge related to agreements with its suppliers and battery partners, LG Electronics and LG Energy Solution.
GM is likely to experience additional pressure on its margins going forward as it ramps EV production. The automaker, however, said it met its target of producing 50,000 EVs in North America in the first six months of the year and expects its EV revenue to reach $50 billion by 2025.
In a letter to shareholders, Barra wrote, “we are taking new steps that will reduce GM’s costs and improve our EV margins over time.”
GM announced earlier this year plans to cut costs by $2 billion by the end of 2024.
The company is also set to reveal the new Cadillac Escalade IQ on Aug 9, an electric version of the full-size luxury SUV.
