General Motors’ (GM) Ontario Plant Halts BrightDrop Production

General Motors Company GM will halt production of BrightDrop pickup trucks at its Ontario plant from October until next spring because of delays in delivering the battery modules that drive the vehicle.

Production of pickup trucks at CAMI Assembly will resume in spring 2024, supported by the launch of CAMI’s new battery module line. The line will produce enough battery modules to fully support production of the BrightDrop vehicle and increase electric vehicle (EV) production at other General Motors plants.

In July, Mary Barra, CEO of General Motors, discussed an unspecified issue that slowed down its EV production. The issue involved General Motors’ auto parts supplier, which struggled with delivery issues.
A major auto company sent a manufacturing engineering team to help suppliers manage its shipments.

General Motors has also sent lines to assemble manual modules at its EV plants, including the CAMI Ingersoll plant. The 400,000-square-foot factory, which will begin production of battery modules in the second quarter of 2024, is dedicated to manufacturing the BrightDrop Zevo and other EVs.

The CAMI plant also stopped work in July for two weeks due to the unavailability of parts after two weeks of summer.

General Motors reached its goal of producing 50,000 EVs in North America in the first half of 2023 and is targeting around 100,000 EVs in the second half.

Zacks Rank & Key Options

GM currently holds a Zacks Rank #3 (Hold).

Some of the top players in the auto space include Oshkosh Corporation OSK, Gentex Corporation GNTX and Allison Transmission Holdings, Inc. ALSN, each with a Zacks Rank #1 (Strong Buy). You can see full list of today’s Zacks #1 stocks here.

The Zacks Consensus Estimates for OSK’s 2023 sales and earnings imply year-over-year growth of 15% and 126.9%, respectively. The 2023 EPS estimate has moved north by $1.74 over the past 60 days. 2024 EPS estimate has risen by 6 cents in the last 30 days.

The Zacks Consensus Estimates for GNTX’s 2023 sales and earnings show year-over-year growth of 17.3% and 29.4%, respectively. EPS estimates for 2023 and 2024 have risen by 9 cents each over the past 60 days.

The Zacks Consensus Estimates for ALSN’s 2023 sales and earnings suggest year-over-year growth of 9.4% and 25.3%, respectively. EPS estimates for 2023 and 2024 have risen by 39 cents and 43 cents, respectively, over the past 60 days.

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Zacks Rank & Key Options

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