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General Motors abandons its BrightDrop electric van project

General Motors abandons its BrightDrop electric van project

Bitget-RWA2025/10/21 16:03
By:Bitget-RWA

General Motors is discontinuing its BrightDrop electric delivery vans, ending the project just four years after its launch.

The automaker revealed this decision on Tuesday along with its third-quarter financial results, citing that the “commercial electric delivery van market has grown much more slowly than we anticipated.” GM also pointed to “shifting regulations and the removal of tax incentives in the U.S.” — a consequence of the second Trump administration’s opposition to electric vehicles.

Production of BrightDrop was halted at GM’s CAMI Assembly plant in Ontario, Canada back in May, which also resulted in 500 layoffs. On Tuesday, GM stated it needs to have “substantive talks” with Canadian officials about “potential opportunities” for the facility. For now, GM told TechCrunch that BrightDrop dealers will “keep selling and servicing vehicles as we manage the remaining stock.”

The move to shut down BrightDrop comes at a peculiar time for EVs in the U.S. Automakers like GM achieved record EV sales in the third quarter, partly fueled by the looming end of federal tax credits, a decision made by Congressional Republicans.

At the same time, leading carmakers including GM have spent much of the past year scaling back their ambitious EV production and sales targets. GM, which once committed to a fully electric lineup by 2035, claimed on Tuesday that it is “well equipped to satisfy robust, ongoing demand” for gasoline-powered vehicles. (Investors have responded positively; GM’s share price had climbed 14% at the time of publication.)

BrightDrop’s brief history has been turbulent. GM introduced the initiative as a quasi-startup in 2021, launching it within its “Global Innovation” division (the same group behind OnStar) and later spinning it off as a private entity.

BrightDrop made its debut at that year’s Consumer Electronics Show. GM highlighted lower ownership costs and reduced maintenance as key benefits over traditional gas-powered vans. The BrightDrop vans appeared ready to capitalize on the push from major corporations like FedEx to achieve carbon neutrality and zero emissions. The brand also emerged during a pandemic-driven boom in e-commerce, which increased demand for delivery vehicles.

Only two years later, GM folded BrightDrop into its broader commercial vehicle business, GM Envolve. The division’s CEO, Travis Katz, resigned. Some vans experienced battery fires, leading to a recall in early 2024. GM then moved BrightDrop again, this time under Chevrolet’s commercial arm. Sales continued to lag this year, with just over 1,500 units sold in the first half.

The reasons behind GM’s difficulties selling BrightDrop vans remain unclear. Despite several warning signs, the decision to end the program seems somewhat sudden. Earlier this month, GM Envolve vice president Ian Hucker was still promoting BrightDrop vans in a press release about a partnership with Frontdoor Collective and Circuit EV, which was set to supply 50 BrightDrop vans for Target’s Dallas-Fort Worth operations.

GM is not the only company facing challenges; Ford’s E-Transit van sales have also dropped below 2024 levels. However, Rivian has delivered over 25,000 electric vans to Amazon in recent years, and Los Angeles-based startup Harbinger has sold more than 200 electric truck chassis since launching production in April. On Tuesday morning, Harbinger also announced plans to expand sales into Canada.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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