General Motors gives up on BrightDrop electric vans

Core Insights - General Motors (GM) is discontinuing its BrightDrop electric delivery vans due to slower-than-expected market development and changes in the regulatory environment, including the elimination of tax credits in the U.S. [1][2] - BrightDrop production has been suspended since May, leading to job cuts and a need for discussions with Canadian government leaders regarding the future of the CAMI Assembly facility [2][3] - Despite the discontinuation of BrightDrop, GM's stock price has increased by 14%, indicating investor confidence in the company's shift back to internal combustion vehicles [3] Company Developments - BrightDrop was launched in 2021 as a part of GM's "Global Innovation" organization and was initially positioned as a startup [3][4] - The program faced challenges, including a chaotic existence, a recall due to some vans catching fire, and poor sales performance, with only about 1,500 vans sold in the first half of the year [7][8] - GM's strategy has shifted from a fully electric fleet by 2035 to focusing on internal combustion vehicles, reflecting a broader trend among major automakers to adjust their EV production promises [3][4] Market Context - The electric vehicle market in the U.S. is experiencing mixed signals, with some companies achieving record sales while others, like GM, struggle with specific models [2][9] - Competitors such as Rivian have successfully deployed over 25,000 electric vans with Amazon, highlighting a disparity in market performance among electric delivery vehicle manufacturers [9]