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article imageGM working on plan to build electric van for business users

By Karen Graham     Jun 4, 2020 in Business
Detroit - General Motors is sticking to its goal of an all-electric future. According to unnamed sources, GM plans to build an all-electric van for business use at its Detroit-Hamtramck plant.
According to the scuttlebutt, the GM van - code-named BV1 - is due to start production in late 2021, five sources told Reuters. It is said the BV-1 van will share some components with GM’s future electric pickups and SUVs, including the automaker’s new Ultium advanced battery system - and will be built alongside GM's ann-electric pickup at the Detroit-Hamtramck plant.
Even though General Motors is not confirming the Reuters story, GM spokesman Stuart Fowle, in an email to the Detroit Free Press on Thursday said: "General Motors is committed to an all-electric future and is implementing a multi-segment, scalable EV strategy to get there. At this time, we do not have any announcements to make regarding electric commercial vehicles."
General Motors is investing $3 billion to retool the Detroit-Hamtramck plant and plans to start production on an electric pickup that is due late next year. It will be sold by GMC dealers under a Hummer name. GM has said it will build several other electric vehicles at the plant, which is scheduled to reopen in about a year.
Artistic rendering of plug-in electric delivery truck.
Artistic rendering of plug-in electric delivery truck.
Workhorse Group
Commercial Van market
GM is looking to get into the commercial van market. For established players, it is a hugely profitable segment that's driven by the cost of ownership and not fancy technologies. It is also a segment of the market that Elon Musk's Tesla has yet to enter.
Tesla CEO Elon Musk, in a series of tweets last fall, hinted that his electric car company might be interested in launching an all-electric work van, reports said.
Rivian, of which Ford is an investor, is expected to start building the first of 100,000 mid-size electric vans for Amazon next year.
UPS has commissioned 10,000 mid-size electric vans from Arrival, a British startup. The Amazon and UPS contracts with Rivian and Arrival are worth at least $4 billion combined, Reuters said.
“Buyers of commercial vans want reliability and not necessarily a flashy brand name,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.
“The reduced maintenance and fuel use of electric vehicles become very attractive to a business customer, where the current limitations of EVs make the price premium less attractive to individual consumers.”
More about Generalmotorsc, DetroitHamtramck plant, allelectric van, business users, Tesla
 
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