GM is ending production of the Chevy Brightdrop electric van, according to portions of a transcript of a recent earnings report published by The Verge. The decision was made due to slowing demand in the EV market, as hundreds of Brightdrop vans have begun piling up in dealer lots.
“This is not a decision we made lightly because of the impact on our employees,” CEO Mary Barra said in the earnings call. “However the commercial electric van market has been developing much slower than expected, and changes to the regulatory framework and fleet incentives has made the business even more challenging.”
Those changes to the regulatory framework she mentions likely refer to the recent disappearance of the federal EV tax credit. The policy offered prospective buyers a $7,500 tax credit and was supposed to wind down in 2032, but the Trump administration killed it back in September as part of the so-called Big, Beautiful Bill. Brightdrop vans were also eligible for a $7,500 rebate for commercial EVs under 18,000 lbs, which went away along with the tax credit.
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In other words, Brightdrop electric vans are simply too expensive for most consumers. They started at $74,000. The double discount brought the starting price down to $59,000, but that’s gone now. Additionally, rival Ford’s E-Transit van starts at $51,600.
GM first launched the Brightdrop vans back in 2021, and this seemed to be a serious attempt to capture the commercial EV market. The company made its own fleet management software and inked deals with Walmart, FedEx and others. Money is money, however, and not too many commercial customers have an extra $15,000 laying around to make up for those lapsed credits and rebates.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: engadget.com
