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General Motors (GM) Resumes Chevy Blazer EV Sales, Cuts Price
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General Motors Company (GM - Free Report) announced that it is reducing prices and restarting the sales of the Chevy Blazer EV following a halt in deliveries to address software issues.
The starting price of 2024 Blazer EV models will be $50,195, or $6,520 less than the initial price of the vehicle. The price excludes the $7,500 federal tax credit, for which the model is now completely eligible.
Following the issues reported by vehicle owners and media about the car’s infotainment and charging systems, the automaker halted the deliveries of the model.
Per Baris Cetinok, the vice president of product, software and service at GM, all the issues were concerned with the vehicle’s software and were addressed without making any physical changes to the model. Some reported issues included small bugs in coding and the vehicle’s ability to communicate with public EV chargers.
There is not a single predominant root cause responsible for all these issues, Cetinok explained during an interview with CNBC. It's a convergence of circumstances and rare instances. Cetinok noted that while many issues were rare, they remained disruptive nonetheless.
GM implemented the stop-sale to prevent further issues for its customers. The automaker carried out comprehensive "testing matrix," which involved rewriting the code repeatedly and testing it. It also carried out physical on-road testing across the country.
Per the automaker, the Blazer EV fixing processes have helped the company improve its software quality validation testing for upcoming vehicles.
Besides fixing the software issues, the automaker added or altered some features on early customer feedback, including customizable multicolor ambient lighting and a modified driver infographic system.
Cetinok said General Motors has no plans to restore Apple CarPlay and Android Auto in the Blazer or future vehicles. GM’s existing programs that communicate with the vehicle’s internal system deliver a better customer experience and offer more functionalities than a third-party add.
Last year, the company garnered attention when it announced that its future EVs would forgo features that replicate smartphone functions, such as navigation and music, in favor of integration into the model's infotainment system.
This vertical integration strategy is also anticipated to enable GM to generate revenues from potential infotainment subscriptions and services. In October 2021, GM projected annual software and services revenues in the range of $20-$25 billion, with an estimated 30 million connected vehicles by the end of the decade.
The starting price of costly Blazer EV RS models will be reduced to $54,595 for all-wheel drive, or $56,170 for rear-wheel drive.
The prices for other models, including a sub-$50,000 trim, will be disclosed when the vehicles go on sale later this year. The automaker changed material sourcing to make the vehicle fully eligible for a $7,500 federal tax credit.
The prices of EVs have been one of the reasons that hampered its adoption. Just a few months ago, EV-maker reported a slower-than-expected EV sales. The recent price cut brings the vehicle closer to the prices of the gas-powered Blazer, which has a starting price in the range of $37,000-$48,000.
Some other automakers, including Ford, have also reduced prices of EVs recently. The EVs that have regained eligibility for tax credits this year include Volkswagen ID.4, Nissan Leaf, Honda Prologue and Cadillac Lyriq.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved 86 cents and $1.01, respectively, in the past seven days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 30 days.
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General Motors (GM) Resumes Chevy Blazer EV Sales, Cuts Price
General Motors Company (GM - Free Report) announced that it is reducing prices and restarting the sales of the Chevy Blazer EV following a halt in deliveries to address software issues.
The starting price of 2024 Blazer EV models will be $50,195, or $6,520 less than the initial price of the vehicle. The price excludes the $7,500 federal tax credit, for which the model is now completely eligible.
Following the issues reported by vehicle owners and media about the car’s infotainment and charging systems, the automaker halted the deliveries of the model.
Per Baris Cetinok, the vice president of product, software and service at GM, all the issues were concerned with the vehicle’s software and were addressed without making any physical changes to the model. Some reported issues included small bugs in coding and the vehicle’s ability to communicate with public EV chargers.
There is not a single predominant root cause responsible for all these issues, Cetinok explained during an interview with CNBC. It's a convergence of circumstances and rare instances. Cetinok noted that while many issues were rare, they remained disruptive nonetheless.
GM implemented the stop-sale to prevent further issues for its customers. The automaker carried out comprehensive "testing matrix," which involved rewriting the code repeatedly and testing it. It also carried out physical on-road testing across the country.
Per the automaker, the Blazer EV fixing processes have helped the company improve its software quality validation testing for upcoming vehicles.
Besides fixing the software issues, the automaker added or altered some features on early customer feedback, including customizable multicolor ambient lighting and a modified driver infographic system.
Cetinok said General Motors has no plans to restore Apple CarPlay and Android Auto in the Blazer or future vehicles. GM’s existing programs that communicate with the vehicle’s internal system deliver a better customer experience and offer more functionalities than a third-party add.
Last year, the company garnered attention when it announced that its future EVs would forgo features that replicate smartphone functions, such as navigation and music, in favor of integration into the model's infotainment system.
This vertical integration strategy is also anticipated to enable GM to generate revenues from potential infotainment subscriptions and services. In October 2021, GM projected annual software and services revenues in the range of $20-$25 billion, with an estimated 30 million connected vehicles by the end of the decade.
The starting price of costly Blazer EV RS models will be reduced to $54,595 for all-wheel drive, or $56,170 for rear-wheel drive.
The prices for other models, including a sub-$50,000 trim, will be disclosed when the vehicles go on sale later this year. The automaker changed material sourcing to make the vehicle fully eligible for a $7,500 federal tax credit.
The prices of EVs have been one of the reasons that hampered its adoption. Just a few months ago, EV-maker reported a slower-than-expected EV sales. The recent price cut brings the vehicle closer to the prices of the gas-powered Blazer, which has a starting price in the range of $37,000-$48,000.
Some other automakers, including Ford, have also reduced prices of EVs recently. The EVs that have regained eligibility for tax credits this year include Volkswagen ID.4, Nissan Leaf, Honda Prologue and Cadillac Lyriq.
Zacks Rank & Other Key Picks
GM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , Toyota Motor Corporation (TM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved 86 cents and $1.01, respectively, in the past seven days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 30 days.