Forget about inflation, interest rates, and the possibility of a recession; people are interested in the new all-electric Hummer that General Motors (NYSE:GM) has produced. The issue is that GM is unable to stay up with the competition.
The multinational automotive corporation said on Thursday that it would no longer accept bookings for the GMC-branded Hummer EV owing to its limited ability to produce the vehicles.
Thursday’s announcement from GM included the following phrase: “We’re thrilled to say that this extraordinary demand has led to Hummer EV bookings being fully booked at this moment.”
It is yet another sign of a strong demand for vehicles of any size and type — even a beast that weighs more than 9,000 pounds like the Hummer — that use the electric grid and rechargeable batteries to move rather than gasoline and an internal combustion engine. Demand grew steadily over the past few years.
And the figures show it: According to the annual Tracking Clean Energy Progress update issued on Thursday by the International Energy Agency (IEA), electric car sales are on track to set an all-time high this year. This news was announced on Thursday.
The organization’s headquarters in Paris has stated that it anticipates electric vehicles (EVs) to account for 13% of total light-duty vehicle sales worldwide in 2022. However, the organization has also cautioned that “stronger efforts” are required to put the world “on track to reach net zero emissions” by 2050.
Extremely Popular But Only Available To A Limited Audience
The Chevrolet Hummer is proven to be something that customers desire. Whether to assist the environment or to experience the force of a gigantic four-wheel-drive vehicle being propelled forward from zero to sixty miles per hour in less than three seconds, the car does not fail to mesmerize.
Keeping up with production is a challenge for GM, as it is for other manufacturers. Between January and June, fewer than 400 of the pickup variant of the Hummer were supplied to customers by GM.
This issue is the result of several interrelated factors. The most important is a deficiency in the supply of lithium batteries. Lithium batteries are required to power the vehicles. Ongoing problems have hampered them in the supply chain that has halted production and the movement of essential components like microchips. This issue has an impact on all automakers.
When the company’s order backlog hit 200,000 by the end of 2021, Ford (F) discontinued taking reservations for its all-electric F-150 Lightning. Even though the firm is attempting to improve production, as of August, just 6,800 units had been delivered since deliveries of the electric truck started in May.
Even Tesla (TSLA), the world’s largest manufacturer of electric vehicles (EVs), stated that it only has a four-day supply of inventory as of the end of June.
Although these efforts are still years away from operational, virtually all traditional automakers have announced plans to create significant investments in constructing electric vehicle (EV) battery plants. These plans typically involve the formation of joint ventures with other battery manufacturers.
Purchase Electric General Motors Hummer at a Premium Price
And here is where General Motors (NYSE:GM) runs into trouble with the Hummer. It is now bookings for around 45,000 pickup trucks and approximately 45,000 sport utility vehicles (SUVs). Although the company has stated that it would begin delivering the cars in the spring of 2019, it has not verified how long it will take to give all 90,000 pre-ordered Hummers on its list into the driveways of excited consumers.
An electric Hummer is not inexpensive. Due to available trim levels, the base price can range anywhere from $84,650 to $104,650. This price is for a vehicle ordered straight via General Motors (NYSE:GM): A cursory check on the internet reveals that some lucky EV owners are offering to sell their desirable devices for three times the original price.
On the website Cars & Bids, an aftermarket car-selling platform, a white Hummer EV Pickup edition that has 100 miles on the odometer and a window sticker price of $114,290 is presently being offered for sale for the cost of $150,000.
As soon as it was put on the market in 1992, the civilian version of the military Humvee known as the M998 Hummer immediately became an environmentalist’s worst nightmare owing to the excessive amount of gas it used. 2010 marked the end of production for the brand.
The Chevrolet Equinox, which will debut on sale in 2024 with a starting sticker price of $30,000, is another option that General Motors (NYSE:GM) offers for customers who are looking for a vehicle that is both more affordable and more compact.
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