General Motors Co (NYSE:GM) said on Tuesday it will resume production of the Chevrolet Bolt EV and EUV, putting to rest speculation that the legacy automaker is planning to pull the plug on the small electric vehicle.
What Happened: The Detroit, Michigan-based automaker said it plans to resume production for the Chevy Bolt at its Orion Township in the week of April 4, The Detroit News reported on Tuesday, citing the automaker.
GM had last month announced an investment plan to build the electric versions of its best-selling pickups Chevy Silverado and GMC Sierra in Orion but, at the time, revealed no details on the production plans for the Bolt EVs, leading to speculation on the small electric vehicle’s fate.
"We remain committed to Bolt EV and EUV and this decision will allow us to simultaneously replace battery modules and resume retail sales soon, which were strong before the recall," a company spokesperson said, as per The Detroit News.
See Also: GM Could Be Looking To Pull The Plug On Chevy Bolt
Why It Matters: GM was mired in a huge recall for the Bolt last year, forcing the company to halt production at the Orion plant. The legacy automaker had to recall about 141,000 Bolts that it ever built after finding battery issues that led to fires.
LG Energy, which supplied batteries for the Bolt, entered an agreement with the automaker to reimburse nearly $2 billion in costs associated with the mega recall.
GM plans to launch 30 new electric vehicles by 2025 while rival Ford Motor Company (NYSE:F) aims to make 600,000 electric vehicles per year globally by the end of 2023.
Price Action: GM shares closed 3.2% higher at $53.7 a share on Tuesday.
Photo: Courtesy of GM
