General Motors (GM) President Mark Reuss said the company remains confident in its annual fiscal outlook despite mounting supply chain issues throughout the global economy. He also said the company plans to continue accelerating the launch of the new electric Cadillac as planned.
At a glance
- GM remained confident in its rollout of new electric Cadillacs despite global supply chain woes
- GM expects record-breaking profits between $13 and $15 billion this year
- The Spring Hill, TN plant will be able to produce hundreds of thousands of electric Cadillacs per year
In an investor’s call, Reuss called supply chain risks caused by recent geopolitical strife “real,” but that GM is managing the pressure, according to Reuters. He said the Cadillac Lyriq launch will continue as planned, if not on an accelerated timeline in order to be one of the first luxury EVs to market.
“We are not new to this game,” Reuss said, adding that GM enjoys long-term contracts for materials and a bevy of sources of supply. “We never have one answer.”
He also refused to alter GM’s financial outlook, which calls for an operating profit between $13 billion to $15 billion. The company posted record profits last year to the tune of $14.3 billion.
With supply chain questions hopefully answered, GM can look to besting its competitors
The confidence shines through despite a shifting business climate in which many businesses — automakers included — are already softening Wall Street expectations during Q1. Most company reps blame surging oil and raw materials prices (like aluminum, neon, and nickel) for the contracted fiscal guidance. Some have also pointed to economic sanctions placed on Russia by Western nations as a cause for concern.
On Monday, GM formally launched production of the new Lyriq at the company’s Spring Hill, Tenn., plant. A compact utility vehicle by design, the new Cadillac will supposedly compete with Tesla’s best-selling Model Y. Tesla currently leads the market for all electric vehicles by a wide margin, but competition is coming.
Reuss and other GM officials said consumer interest in the Lyriq is stronger than expected. More than 240,000 people have expressed interest via the company’s online forms, they said.
“We are looking to accelerate production,” GM Vice President for Cadillac Rory Harvey said on a call.
Reuss assured investors that the Spring Hill plant will have the materials necessary to output a maximum 200,000 Lyriqs per year to start. He said the plant also needs to continue making combustion engine SUVs, as well as save room for other potential EV models. Thanks to a rise in consumer demand, GM said it plans to build 400,000 electric vehicles both this year and next year.
The company also pointed to an aggressive EV plan by rival Ford as a reason for the accelerated timeline.
Cadillac will allow customers to place firm orders for the 2023 Lyriq starting May 19.