General Motors (GM) is delaying production of electric trucks at a Michigan plant until late 2025 as it seeks to preserve capital amid the ongoing strike by autoworkers in the U.S.
In a statement, GM said that it is delaying by a year its plans to begin construction of next-generation electric vehicles at its main plant in suburban Detroit. The factory currently produces Chevrolet Bolt electric vehicles, which GM plans to stop at the end of this year.
The automaker said the move is being made to “better manage capital investments” and make the new electric vehicles more profitable.
The delay is the latest sign of trouble for the U.S. automakers, which have been dealing with targeted strikes by the United Auto Workers (UAW) union for more than a month with no resolution in sight.
Even before the strike, GM, Ford Motor Co. (F) and Stellantis (STLA) were spending billions of dollars to electrify their vehicle fleets even as adoption of EVs among consumers remains slow.
Any new collective agreement with the UAW is expected to be more expensive than in the past as the union is demanding pay raises of 40% and a return to traditional pension plans for all workers.
General Motors previously said that it planned to produce 400,000 electric vehicles in North American between 2022 and mid-2024. The company has said that it plans to only sell electric vehicles by 2035.
The stock of General Motors has declined 12% over the last year and currently trades at $30.33 U.S. per share.
