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General Motors' (GM) Ontario Plant Halts BrightDrop Production

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General Motors Company (GM - Free Report) will halt the production of BrightDrop commercial vans in its Ontario plant from October until next spring due to delayed delivery of battery-modules that power the vehicle.

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

In July, Mary Barra, CEO of General Motors, discussed an unspecified issue that decelerated its EV production. The matter involved General Motors’ unnamed automation equipment supplier, which struggled with delivery issues.
The auto giant sent a manufacturing engineering team to help the suppliers regulate its deliveries.

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

The CAMI plant also suspended operation in July for two weeks due to the unavailability of parts after two weeks of summer downtime.

General Motors met its goal of manufacturing 50,000 EVs in North America during the first half of 2023 and aims for around 100,000 EVs in the second half.

Zacks Rank & Key Picks

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

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

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

The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year rises of 17.3% and 29.4%, respectively. The EPS estimates for 2023 and 2024 have moved up by 9 cents each in the past 60 days.

The Zacks Consensus Estimate for ALSN’s 2023 sales and earnings suggests year-over-year increases of 9.4% and 25.3%, respectively. The EPS estimate for 2023 and 2024 has moved up by 39 cents and 43 cents, respectively, in the past 60 days.

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