GMC, Chevrolet to continue with ICE

AFTER announcing in June that it will scale back BEV production by between 50,000 – 100,000 units over the next six months due to waning sales, General Motors has now announced it will keep its ICE options open in the US through the Chevrolet and GMC brands.

 

The iconic GM brands will focus on both combustion and electric powered vehicles into the foreseeable future while plug-in hybrid (PHEV) powertrains are also in the mix and scheduled for 2027.

 

Neither has announced a revised timeframe to go all-electric in the US and both are reported to be keeping their high-margin petrol-powered nameplates up to date, refreshed and redesigned while at the same time launching EVs.

 

The bet each way by the pair fans speculation suggesting among other things, uncertainty in relation to November’s US presidential election and what happens to the so-called “Inflation Reduction Act” tax break which incentivised EV production and purchase and is reputedly set to be dumped under a Trump administration should he win.

 

Not to mention sluggish BEV sales across the US as many buyers walk past them on showroom floors and straight to lower priced ICE-powered vehicles leaving dealers with large unsold BEV inventory that has a domino effect back to the factory gate.

 

The slow BEV sales may be driven by many factors among them high purchase price, low retained values, and recharging/range concerns in a market that seems rusted on ICE.

 

Whatever the cause, publication Automotive News (AN) says both Chevrolet and GMC are redesigning their popular compact EV crossovers (to make them more affordable and drive further) and giving their profitable full-size SUVs facelifts.

 

“They’re also rolling out electric full-size pickups with Chevrolet just launching the Silverado EV RST First Edition, joining two fleet-focused configurations and GMC is releasing the Sierra EV starting with the Denali Edition 1 this (northern hemisphere) summer. Both start at just less than $US100,000 ($A153,000) with shipping and will be followed by lower-priced trims,” it reports.

 

The two nameplates build some of GM’s most profitable, high-volume models but remain schtum as to making a commitment to going all-electric with the transition likely to happen more slowly than at Cadillac and Buick, which have set goals to electrify their portfolios by 2030.

 

According to the AN report the Sierra EV pickup will be GMC’s second electric nameplate after the Hummer pickup and SUV.

 

Chevrolet will have electric offerings in three key segments – the big Silverado EV, the Blazer EV mid-size crossover, and the Equinox EV compact crossover – before bringing back the smaller Bolt EV on GM’s Ultium battery electric platform next year.

 

None of these vehicles is likely to see the light of day in Australia at the moment or in future as GM has opted to put a focus on the premium BEV market Down Under through its Cadillac brand with factory RHD vehicles expected to be priced (well) over the $A100,000 mark.

 

Apart from Corvette, GM “left hook” products are reverse engineered here by GMSV selling into niche markets.

 

AN quotes US auto industry expert Paul Waatti director of industry analysis for AutoPacific Inc as saying “GMC continues to leverage its ‘strong brand identity’ into robust sales of its premium pickups and SUVs”.

 

“Pick-ups and large SUVs also will continue to be strong sellers at mass-market Chevrolet, while the Trax subcompact crossover is attracting entry-level buyers,” he added.

 

GM’s decision to end production of the Malibu, Chevrolet’s last sedan, “leaves some room for a potential EV sedan that could breathe new life into sedans at GM”, the report continued.

 

GMC and Chevrolet’s plans herald updates across the board and new electric versions to most if not all nameplates. Hummer EV pick up and SUV for example could be freshened as early as next year while both Chevrolet and GMC could bring electric versions of their full size SUVs, Tahoe, Suburban,Yukon,Yukon XL to market in 2027.

 

Chevrolet’s Silverado EV is being built in a fleet and a long range (710km) trim with a heavy-duty version possible later this decade while GMC’s Sierra EV pick up goes on sale later this year, again with long range.

 

On the ICE side of the business, Silverado and Sierra are expected to be redesigned in 2026 with heavy-duty versions following in 2027.

 

AN says in its report that GM last year committed to investing more than $US1.8 billion ($A2.7b) toward future pick-up production at factories in Michigan, Indiana and Ontario that build the Silverado and Sierra. The next-generation Silverado and Sierra also are likely contenders for plug-in hybrid technology.

 

GM has said it will sell PHEVs in North America in 2027 but has not yet confirmed vehicle segments.