GM delays Orion EV plant by one year to ‘better manage’ investment and EV demand

That was needed “to better manage capital investment while aligning with evolving EV demand,” GM said in a statement. “In addition, we have identified engineering improvements that we will implement to increase the profitability of our products.”

That’s the second time plans for a U.S.-based EV-related plant are put on ice: Ford Motor Co.
F,
+0.96%
in late September said it was pausing work on its $3.5 billion battery plant also in Michigan.

Autoworkers have been on strike at several GM, Ford and Stellantis NV
STLA,
+1.21%
facilities for a little over a month.

The strike comes as the legacy U.S. carmakers have poured billions and promised much more money to accelerate the transition to EVs, a market dominated by Tesla Inc.
TSLA,
+0.33%,
which does not have a unionized workforce.

Underscoring how hard it is to make a profitable EV, GM earlier this year discontinued its Chevy Bolt, only to promise shortly after to bring back the mass-market electric sedan built on an updated platform at a later date.

Workers at Orion will be offered “other opportunities” in Michigan, including positions at GM’s “Factory Zero” battery plant, “where production has been steadily increasing and significant scaling is planned for 2024,” GM said.

GM said in January 2022 that it was investing $4 billion to convert Orion to produce electric trucks using its Ultium EV platform.

The construction includes significant facility and capacity expansion at the site, including new body and paint shops and new general assembly and battery pack assembly areas, the automaker said.

The last runs of the Chevy Bolt will continue as planned through the end of this year, GM said.

Shares of GM held on to gains after the announcement, up 0.9% at one point Tuesday afternoon. The stock is down 9% so far this year, contrasting with gains of around 14% for the S&P 500 index
SPX.