General Motors is taking significant steps towards CEO Mary Barra's zero-emissions vision, launching the Hummer EV and investing an additional $2.2b to increase domestic manufacturing. The money invested is part of a $4.5b plan announced in March 2019 to prepare American EV-related manufacturing facilities. GM calls the Hummer EV the "world's first super truck."
- Shares were up ~5% yesterday, another ~2% in after-hours trading, and continued to rise early Wednesday morning.
- The company expects to have 20 electric vehicles on the market by 2023.
- Of the $2.2b invested, ~$2b will be going toward a facility in Spring Hill, Tennessee, to produce EVs.
- GM has invested over $29b in U.S. manufacturing over the last decade.
- GM announced a $20b plan earlier this year to compete with Tesla in electric and autonomous vehicles.
The iconic consumer brand began due to Arnold Schwarzenegger's obsession with the Army Humvee vehicle produced by AM General. The brand was purchased in 1999 by GM and grew to become one of the most iconic vehicle brands worldwide. By 2008, however, the global recession lowered demand for the gas-guzzling car (~15 miles per gallon), and after a failed sale attempt, which was prevented by the Chinese government, the last car rolled off the line in May 2010.
The new 2022 GMC Hummer EV is an opportunity for GM to capitalize upon the iconic brand while turning its greatest flaw into its starring feature. The new car is expected to rival the Tesla CyberTruck and other competitors, including Rivian's R1T and an electric Ford F-150.
The truck will start at $112,595 and feature 350 miles of range, 1,000 horsepower, and 11,500 lb/ft of torque.
Lower priced models will be released in the following years.