GM has also reported its financial performance for Q4 2021, and the company is well-positioned for an even better 2022, buoyed by strong sales for its pickups and SUVs.
General Motors was able to post impressive results for the last quarter of 2021 despite the effect of the chip shortage and other supply chain problems on its production. The company continues to pursue the electrification and automation of its product lineup.
The popular auto company’s electric vehicles have seen strong demand, including models running on its new Ultium battery platform. Customers went in droves for both existing and upcoming EVs, including the Hummer EV, Silverado EV, Equinox, which will have an estimated starting MSRP of $30,000, Sierra, and the Lyriq. Similarly, its new spin-off, Brightdrop, saw increased demand for its commercial electric van EV600. Clients of Brightdrop included big names in logistics like Walmart, Merchant’s Fleet, and FedEx. These companies are snapping up battery-powered vans as they try to go green in their operations.
The star of the show, the Hummer EV, which the company based on the popular but much-maligned gas-powered Hummer vehicles of the ’90s, picked up almost 60,000 reservations. The first units have mainly gone to prominent people in sports and entertainment, helping to give the truck and EVs in general even more visibility. The CEO, Mary Barra, said the feedback on the EV has been overwhelmingly positive.
The Silverado electric pickup truck has gathered even more reservations, despite not coming until next year. About 110,000 bookings have been made, including from more than 240 fleet operators. GM said the number is growing every day.
“With an improving outlook for semiconductors in the U.S. and China, we expect our 2022 results will remain strong,” GM CEO Mary Barra wrote. “In fact, we expect our EBIT-adjusted earnings to remain at or near record levels in the range of $13 billion — $15 billion, all while investing more year over year in our growth businesses like Cruise, BrightDrop and our rapidly accelerating portfolio of electric vehicles.”
GM is already reaping benefit from its $35 billion investment in EV, announced near the middle of last year. Barra noted that her company wouldn’t face a battery shortage as it expands its EV operations.
The company also reported the following milestones:
- In late 2021, we opened Factory ZERO in Detroit and Hamtramck, our first plant dedicated to Ultium products, including the GMC HUMMER EV. We are simultaneously converting other plants, with EV production in Tennessee and Canada beginning this year and a plant in Mexico coming online next year.
- We are converting a plant in Orion Township, Michigan, to EV truck production to help provide us with a total of 600,000 units of EV truck capacity in North America by the end of 2025.
- Ultium Cells, our joint venture with LG Energy Solution, announced its third U.S. cell plant, another centerpiece of our investments in Michigan. These cell plants will be backed by a strong, North America-focused supply chain for raw materials, including lithium, Cathode Active Material, and more.
GM hopes to start making the Cadillac Lyriq within the next two months and the EV600 to enter production later this year with an initial annual run of 30,000 units.