At its recent investor day event, General Motors (GM) announced it would stop using the “Ultium” name for its electric vehicle (EV) batteries and technology, though it will continue utilizing these systems in its EVs. This decision follows years of significant investment in marketing, including multi-million dollar Super Bowl ads in 2021 and 2022. Despite phasing out the name, GM intends to keep the underlying technology, which remains central to its plans for future electric vehicles.
This move is part of GM’s broader reevaluation of its electric vehicle strategy, driven by changes in the market and the arrival of new leadership. Key executives, including former Tesla employees JP Clausen and Kurt Kelty, have joined the company. Clausen now leads GM’s manufacturing efforts, while Kelty oversees battery development. Their expertise is expected to shape GM’s future direction as the company adjusts to the evolving EV market.
Along with the branding change, GM has lowered its production targets for 2024. The company initially set a goal of producing 250,000 EVs, but it has now revised that target to 200,000 units. Despite this adjustment, GM reports a 60% increase in EV sales for the third quarter of the year compared to last year. However, electric vehicles still make up only 4.9% of GM’s total sales, a figure that remains below the overall industry average of nearly 10% for the second quarter of 2024.
In addition to the rebranding and production changes, GM announced plans to build a new battery-cell development center at its Global Technical Center in Warren, Michigan. The center is expected to begin manufacturing new battery cells by 2027, with the goal of speeding up the development of new battery technologies. GM believes this facility will allow the company to bring innovations to market more quickly, which is crucial for staying competitive in the fast-growing electric vehicle sector.
GM is also expanding its focus on alternative energy solutions, including the development of a hydrogen fuel cell manufacturing plant in Detroit. While the company has not officially confirmed the plant, reports indicate it will cover over 290,000 square feet. This plant, together with the battery development center, forms part of GM’s broader strategy to diversify its energy offerings, positioning the company as a key player in both the electric and hydrogen vehicle markets.