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Automakers Are Quietly Slowing Down Their Plans for Electric Pickups

Did American car companies misread what EV buyers want?

The GM Orion assembly plant.
Heatmap Illustration/Getty Images

General Motors is pushing back plans to convert its Orion assembly plant in Lake Orion, Michigan. Instead of completing its transition from producing electric cars to electric pickup trucks by 2024, the updated factory won’t be ready till late 2025. In a statement, a spokesperson for GM told me the delay was “to better manage capital investment while aligning with evolving EV demand.”

It’s another indication that there’s a mismatch between the types of electric vehicles that Americans want to buy and the types of EVs — or, really, electric trucks — that American automakers, with ample encouragement and subsidies, want to produce.

Early last year, General Motors announced that it would invest $4 billion into the plant, which was being used for the production of the soon-to-be cancelled-but-much-loved Chevy Bolt, the electric sedan. But earlier this year, GM clarified that it was going to halt Bolt construction as part of its transition to selling electric trucks. The company said it planned to have capacity to build some 600,000 trucks annually once the Orion plant was retooled for truck production. The plant currently employs over 1,200 workers, and the company’s chief executive said on an earnings call in April that eventually employment would triple as the plant reached its full potential to churn out electric Chevy Silverados and GMC Sierras.

“We’ll need this capacity because our trucks more than measure up to our customers’ expectation, and we’ll demonstrate that work and EV range are not mutually exclusive terms for Chevrolet and GMC trucks. So stay tuned,” Barra said on the April earnings call.

But as Kevin Williams has detailed for Heatmap, American EV buyers might not be that interested in electric trucks — and that lack of enthusiasm seems to finally be showing up on factory floors. Yahoo Finance reported Monday that Ford was cutting a shift at the assembly plant that produces the F-150 Lightning, the electric version of its top-selling vehicle, which has seen falling demand recently.

The shutting down of Bolt production at the end of the year and the delay of truck production until late 2025 could leave workers in the lurch, but the GM spokesperson told me the move is unrelated to the ongoing strike by United Auto Workers and that Orion workers will be offered other opportunities in Michigan.

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Sparks

These 21 House Republicans Want to Preserve Energy Tax Credits

For those keeping score, that’s three more than wanted to preserve them last year.

The Capitol.
Heatmap Illustration/Getty Images

Those who drew hope from the letter 18 House Republicans sent to Speaker Mike Johnson last August calling for the preservation of energy tax credits under the Inflation Reduction Act must be jubilant this morning. On Sunday, 21 House Republicans sent a similar letter to House Ways and Means Chairman Jason Smith. Those with sharp eyes will have noticed: That’s three more people than signed the letter last time, indicating that this is a coalition with teeth.

As Heatmap reported in the aftermath of November’s election, four of the original signatories were out of a job as of January, meaning that the new letter features a total of seven new recruits. So who are they?

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Sparks

The Country’s Largest Power Markets Are Getting More Gas

Three companies are joining forces to add at least a gigawatt of new generation by 2029. The question is whether they can actually do it.

Natural gas pipelines.
Heatmap Illustration/Getty Images

Two of the biggest electricity markets in the country — the 13-state PJM Interconnection, which spans the Mid-Atlantic and the Midwest, and ERCOT, which covers nearly all of Texas — want more natural gas. Both are projecting immense increases in electricity demand thanks to data centers and electrification. And both have had bouts of market weirdness and dysfunction, with ERCOT experiencing spiky prices and even blackouts during extreme weather and PJM making enormous payouts largely to gas and coal operators to lock in their “capacity,” i.e. their ability to provide power when most needed.

Now a trio of companies, including the independent power producer NRG, the turbine manufacturer GE Vernova, and a subsidiary of the construction firm Kiewit Corporation, are teaming up with a plan to bring gas-powered plants to PJM and ERCOT, the companies announced today.

The three companies said that the new joint venture “will work to advance four projects totaling over 5 gigawatts” of natural gas combined cycle plants to the two power markets, with over a gigawatt coming by 2029. The companies said that they could eventually build 10 to 15 gigawatts “and expand to other areas across the U.S.”

So far, PJM and Texas’ call for new gas has been more widely heard than answered. The power producer Calpine said last year that it would look into developing more gas in PJM, but actual investment announcements have been scarce, although at least one gas plant scheduled to close has said it would stay open.

So far, across the country, planned new additions to the grid are still overwhelmingly solar and battery storage, according to the Energy Information Administration, whose data shows some 63 gigawatts of planned capacity scheduled to be added this year, with more than half being solar and over 80% being storage.

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Sparks

An Emergency Trump-Coded Appeal to Save the Hydrogen Tax Credit

Featuring China, fossil fuels, and data centers.

The Capitol.
Heatmap Illustration/Getty Images

As Republicans in Congress go hunting for ways to slash spending to carry out President Trump’s agenda, more than 100 energy businesses, trade groups, and advocacy organizations sent a letter to key House and Senate leaders on Tuesday requesting that one particular line item be spared: the hydrogen tax credit.

The tax credit “will serve as a catalyst to propel the United States to global energy dominance,” the letter argues, “while advancing American competitiveness in energy technologies that our adversaries are actively pursuing.” The Fuel Cell and Hydrogen Energy Association organized the letter, which features signatures from the American Petroleum Institute, the U.S. Chamber of Commerce, the Clean Energy Buyers Association, and numerous hydrogen, industrial gas, and chemical companies, among many others. Three out of the seven regional clean hydrogen hubs — the Mid-Atlantic, Heartland, and Pacific Northwest hubs — are also listed.

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