General Motors GM recently signed an agreement with Hertz to help provide additional loaner cars to dealerships amid the global microchip shortage.
It looks like Hertz, a rental car giant, will focus primarily on providing loaner vehicles to Chevy Bolt EV customers. In addition, Hertz will provide the additional loaner vehicles at the automaker’s current rate as an addition to the GM dealer courtesy transportation program.
General Motors recently extended an existing recall for the Chevy Bolt EV and the Chevy Bolt EUV to all models and model years, including the revamped 2022 Chevy Bolt EV and the all-new 2022 Chevy Bolt EUV. General Motors issued the recall because the company had discovered two manufacturing flaws in battery cells supplied by LG Energy Solution of South Korea, its long-time partner for electric vehicles (EV). These include a torn anode tab and a bent separator, which in rare circumstances could cause the battery to fire. To address the issue, General Motors had said early Bolt models would have all battery packs replaced, while newer models would only replace faulty modules in the pack. This had forced the big automaker to halt production of new cars, until LG repaired manufacturing lines and began supplying fault-free battery cells.
This was followed by General Motors which recently announced the resumption of production of Chevy Bolt EV and Bolt EUV batteries, with replacement battery modules due to be shipped to dealers by mid-October. General Motors also plans to release a new state-of-the-art diagnostic software update, developed to locate potential faults in the load and batteries, while allowing it to prioritize damaged batteries for replacement. Chevrolet dealers will tentatively begin installing the new software update in vehicles over the next 60 days.
Like most other automakers, General Motors has continued to tackle the shortage of semiconductor chips, used in various auto parts, since the start of this calendar year. This had forced the automaker to temporarily halt production at several factories across North America.
Nonetheless, the automaker has managed to weather the chip crisis, as evidenced by the company’s plans to increase production and deliveries of nearly all of its vehicles, announced in June. General Motors has been able to resume operations at nearly all of its assembly plants by diverting scarce chip parts to the vehicles with the highest demand and generating the biggest profits.
Other automakers facing this supply chain issue include Ford F, Toyota MT and Honda HMC.
In a separate development, General Motors yesterday unveiled three new electric motors for its Ultium-based electric vehicles at the 2021 Mackinac Policy Conference. The motors will power the automaker’s future electric vehicles and debut on the GMC Hummer EV 2022.
The motors – a 180-kilowatt front-wheel drive motor, a 255-kW front-drive and rear-drive motor, and a 62 kW all-wheel-drive assist motor – are designed in-house by General Motors and can be configured in several different ways. for different power and torque needs. In addition, the engines can be used on a wide range of vehicles, from performance cars to work trucks.
In addition, General Motors has developed software for Ultium Drive motor controllers, which, according to the automotive principle, is essential to meet the propulsion needs of various types of vehicles with a minimum set of components. This new controller will also be integrated initially in the GMC Hummer EV.
General Motors’ Ultium-based electric vehicle power electronics will be integrated directly into Ultium Drive units, reducing costs, weight and manufacturing complexity, while increasing performance and reliability.
The company’s years of expertise and skill in the development of electric drive systems help it quickly transition from conventional vehicles to electric vehicles. Ultium Drive components will allow the company to increase production of electric vehicles more quickly and adjust the production mix to meet growing market demand. Additionally, the company’s vertical integration into the VE space, incorporating both hardware and software, has helped advance its EV game, giving it a significant competitive advantage over its peers.
General Motors currently wears a Zacks Rank # 3 (Hold). You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
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