During the earnings call, GM revealed that the strike had already cost them $800 million in lost production, and that was before the union shut down one of its most important plants.
By now, it’s no secret that making electric vehicles is an expensive business. Lucid has been at it for a while, and it’s still making a significant loss on every Air it sells.
GM’s main problem is its promise to the general population when the Equinox EV was revealed in September 2022. Chevy promised an entry-level price of $30,000 when it was supposed to arrive late this year. Last year, automakers were still struggling with raw material prices, but even so, Chevy stuck to its bold claim.
Legacy automakers still rely on ICE products to keep the cash flowing until EVs reach pricing parity with their combustion-powered counterparts. Now that GM has lost one of its biggest sources of income, an entry-level price of $30,000 doesn’t just look highly unlikely but quite frankly impossible.