AUTO

Will the All-Electric Chevrolet Equinox Save GM’s EV Future?

May 25, 2024

The all-electric, all-new Chevrolet Equinox is now for sale at $41,900.
The base Equinox EV LT, with a starting MSRP of $34,995, will be available later in the year.
GM and its competitors in the U.S. EV market are facing a current sales growth slowdown, as EV sales growth slowed to 2.6% in the first quarter of 2024.

Here in May 2024, GM has a bolder EV strategy than Ford. By releasing its battery electric vehicle (BEV) Equinox, it is hoping to regain past success in the EV market.

“We are at a turning point where EVs will be the mainstream choice for the next generation of customers and Equinox EV will lead this charge for us,” said Mary Barra, Chair and CEO of General Motors. “With the flexibility of GM’s Ultium Platform, we are bringing to market vehicles at nearly every price point and for every purpose.”

However, GM and all companies selling EVs in the U.S. are facing a sales growth slowdown currently.

According to Kelley Blue Book, EV sales growth slowed to 2.6% in the U.S. in the first quarter of 2024. This was a dramatic slowdown in sales growth, as EV sales in the Q1 2023 had outpaced 2022’s Q1 sales growth by an outstanding 46.4%.

Experts say the EV sales growth slowdown is due mainly to lack of charging and high vehicle prices. This may cause problems for GM’s planned EV resurgence with its Chevy Equinox.

The All-Electric, All-New Chevrolet Equinox SUV

The all-electric, all-new Chevrolet Equinox SUV fits into the current EV market comfortably, with a starting price of $41,900 and an estimated range of 319 miles. It is expected to sell well. Super Cruise, the industry’s first true hands-free driver-assistance technology, is included.

Inside the Chevy Equinox, a modern interior offers room for five. A smart infotainment system includes Google Built-in, which features Google Maps, Google Assistant, and the Play Store.

GM said its new Equinox EV qualifies for the federal tax credit of up to $7,500. The credit can be applied at the time of sale. This would bring the price down to a competitive $34,400.

Lower-Priced LT Trim Coming Soon

GM said the base Equinox EV LT with a starting MSRP of $34,995 will be available later in the year. With the $7,500 credit, it would be an enticing $27,495, possibly the lowest-priced EV on the market.

Current Popularity of Hybrids May Cause Problems for the BEV Equinox

American drivers who want to drive electric but don’t have home charging are having difficulty finding enough available public charging. As a result, they have increasingly turned to hybrids as an option to reduce range anxiety.

GM recognized this increased preference for hybrids and made moves accordingly. In April, GM announced it would begin offering plug-in hybrids, possibly starting with the Chevrolet Equinox or the Silverado. The last GM plug-in hybrid electric vehicle (PHEV) was the 2019 Chevrolet Volt.

While PHEVs are more cost-effective and eco-friendly than HEVs (hybrid electric vehicles), PHEVs are produced and sold in much lower numbers than HEVs currently.

Chevy Blazer EV Problems

Chevy’s Blazer EV is currently for sale and recovering now, after facing some difficulties.

In December 2023, General Motors paused the sale of its new $57,000 Chevy Blazer EV. In 2023 and 2024, GM planned to release several electric vehicles; however, production was halted due to issues with the infotainment and charging systems.

Ultium Battery Problems

GM’s next-generation Ultium battery architecture was unveiled at “EV Day” in March 2020. At the time, the goal was to have half a dozen EVs selling in volume, all using Ultium by early 2024.

GM’s 2023 sales of Ultium EVs were a mere 13,838. Of those, 9,155, or two thirds, were one single model, the Cadillac Lyriq. Automotive experts said GM struggled to produce enough Ultium-based EVs as originally planned.

The 2024 Honda Prologue also uses GM Ultium architecture, in a partnership between GM and Honda.

GM’s Chevrolet Bolt Returning in 2025

Chevrolet’s 2023 Bolt was one of the cheapest among the electric cars available in 2024, with a starting price of $27,495. The total cost for a new Bolt 1LT in early 2024 was as low as $19,995, including the full $7,500 tax credit. The Bolt was pulled for the 2024 model year, but will return in 2025.

How Will GM’s EVs Do in 2024?

As we are nearing the halfway point of 2024, GM hopes to lead the American EV market with its Equinox. GM and Ford have an advantage over Tesla with their strong internal combustion engine (ICE) vehicle sales. In April, Tesla reported a $1.4 billion drop in profits and a 9% drop in revenue.

Tesla’s cutbacks of its Supercharger network confused automotive experts, as charging is crucial to Tesla’s sales. GM said it is helping to accelerate the installation of accessible public charging, with access to over 174,000 public chargers and growing, throughout the U.S. and Canada.