Experts: GM's reputation on the line as it faces a stop-sale of new Chevy Blazer EV
Jamie L. LaReau, Detroit Free Press
Updated 7 min read
General Motors has ordered sales of its 2024 Chevrolet Blazer EV to stop until it can find a fix to owner-reported software problems that include intermittent issues with in-vehicle screens and problems using DC fast charging.
GM ordered the stop-sale of the Blazer EV on Dec. 22 and it has no time frame for when it will be lifted, but Chevrolet spokesman Chad Lyons told the Detroit Free Press that engineers are "working around the clock" to resolve the problems.
2024 Chevrolet Blazer EV electric five-passenger midsize SUV
The software quality issues are not safety related and GM has not issued a recall, GM said. It continues to build the EVs at its plant in Ramos Arizpe, Mexico. GM will update those EVs with appropriate software before they are shipped, said GM spokesman Mikhael Farah. Current owners will be notified to bring their Blazer EVs to Chevrolet dealers once the software update is available.
Analysts view the stop-sale as another blow to GM's attempted transition to all EVs by 2030.
Wall Street anticipated GM rebooting its dismal launches of the Ultium-propelled EVs, which includes the Blazer EV, this year. In November, CEO Mary Barra told investors she was "disappointed" in the company's launch of those EVs last year and blamed it on battery module production. She vowed to improve EV production and sales this year.
But now this stop-sale happens.
"It’s a shame to have more delays given I think the upcoming (Chevrolet) Equinox EV and the Blazer EV both look great and are well equipped with good looking interiors and technology," Morningstar autos analyst David Whiston told the Free Press.
Wall Street ultimately cares about cash flow regardless of if it comes from EVs or gasoline-powered vehicles, Whiston said. He does not anticipate the Blazer stop-sale as a long term cash burn. But he worries about perception.
"They need to execute well on Ultium though," Whiston said. "Because they had so many 2023 problems with Ultium production that the market doesn’t want to see more for all of 2024."
A danger to GM's reputation
GM's Farah said the company is taking proactive action in this stop-sale and by doing so it will get its EV sales on track for the rest of the year.
"GM has a long history of overcoming challenges and we remain confident that we have the right team and the right strategy to help us successfully reach our EV goals," Farah said in an email to the Free Press.
But, said Sam Abuelsamid, principal analyst for transportation and mobility at Guidehouse Insights in Detroit, "It’s definitely a very bad start" to the year.
"It’s extremely disappointing," Abuelsamid said of the number of Blazers sold, saying by now GM should have been delivering "many thousands." But he said what is most at risk is GM's reputation.
In fact, GM missed its goal of producing 150,000 EVs last year with the goal of half of those being the new models. Instead, it sold a total 75,883, with most of them being the Chevrolet Bolt compact and the slightly larger Bolt EUV, lower-priced models not using the Ultium propulsion system that will soon be discontinued in their present form.
"Will anybody trust GM to build an EV that works?" Abuelsamid said. "Right now, I would not be inclined to buy a GM EV except for a Bolt and that’s based on old technology. But any of the new EVs, I don’t know if I’d trust it to work.”
'Serious software problems'
The Blazer, which starts at $60,215 and has an estimated range of 279 miles on a full charge, is the fourth of GM's new EVs to come to market. The first was the 2022 GMC Hummer EV pickup launched in late 2021, followed by the 2023 Cadillac Lyriq in 2022 and the Chevrolet Silverado EV work pickup for commercial consumers last year.
Abuelsamid, who is an engineer by training, said most of GM's new EVs have had problems beyond the battery module assembly. The stop-sale of the Blazer is "an indicator of the real serious software problems GM is having with developing their software platforms."
Part of GM’s $2 billion investment saw Spring Hill Assembly retooled with new machines, conveyors, controls and tooling for 2023 Cadillac LYRIQ production which started March 21, 2022.
In June 2022, Abuelsamid said he test drove the Cadillac Lyriq and "there were all kinds of software bugs in that vehicle and that was one of the reasons that launch was so slow. The Hummer also has had a lot of software problems."
In January of last year, the Free Press reported delays in delivering the first Cadillac Lyriqs built at Spring Hill Assembly in Tennessee. At that time, Cadillac spokesman Michael Albano pointed to software glitches and problems with a trim panel on the rear liftgate as the holdups.
The launch of the Hummer, built at Factory Zero in Detroit and Hamtramck, got hung up by some early issues too, as the Free Press reported. GM had to recall about 800 Hummers in late 2022 for a battery connector problem, thereby halting production to fix it.
GMC Hummer EV pickup sits on display before U.S. President Joe Biden speaks at the grand opening of GM's Detroit-Hamtramck EV Factory Zero on Nov. 17, 2021. The president added $7.5 billion to create new electric vehicle charging stations as part of his infrastructure package recently passed by Congress and signed into law on Monday.
In the case of the Blazer, Chevrolet's Lyons said, "We are working quickly to address these issues and to implement a fix. Our engineering teams are working around the clock toward a solution. It's important to note that this is a voluntary action to address a quality software issue. It is not related to our Ultium platform, nor to the Google Built-in technology."
The specific problems
When pressed by the Free Press as to what the exact problems are, Farah said in an email, "Some customers have experienced intermittent issues with in-vehicle screens and, in rare instances, issues when attempting to DC fast charge at certain public stations."
The web site www.edmunds.com reported testing a Blazer EV last month and experiencing multiple problems with its software crashing that led to serious concerns with the brake system, the motor, the battery and some control systems. It could have been just that particular vehicle but, "To say we're stunned to see a list of problems this lengthy on what is, effectively, a brand-new car is an understatement," wrote Nick Yekikian of Edmunds in the review.
Another site, www.insideevs.com, wrote of the Blazer EV it tested, "the infotainment would randomly crash, then reboot and flicker for a very long time, until the infotainment just would crash entirely."
In response to the criticism of GM's software development, Farah said, "Software is a critical piece of GM’s strategy and the new Software & Services team, under the leadership of Mike Abbott, are actively engaged in an early assessment of each product launch."
Abbott's organization will have a centralized team "dedicated to rigorously testing the software for the highest quality and stability," Farah said.
GM must avert a crisis
Launches of new vehicles often have some glitches that many automakers have faced fixing, but in GM's case, the timing couldn't be worse, said Ivan Drury, director of insights at Edmunds.
"Rushing to market with a product that isn't fully vetted, coinciding with the market overall facing skepticism and doubt from mainstream shoppers, this could become one of those 'one-off' incidents that immediately scares off any potential buyers for years to come or just adds fuel to their already anti-EV mindset," Drury said.
Three-quarter view of 2024 Chevrolet Blazer EV SS in Radiant Red Tintcoat. Preproduction model shown. Actual production model may vary. 2024 Chevrolet Blazer EV available Spring 2023.
Drury said if the stop-sale is short and there is a comprehensive fix for all the issues, a crisis to GM's Blazer launch could be averted.
"But every day counts when it comes to a more mainstream launch like Blazer," Drury said. "With Lyriq or Hummer, you had first production run vehicles that were seen as pushing the boundaries into a new era, there is a little more wiggle room for error. But mass market stuff isn't as forgiving. GM has a lot to prove when it comes to EVs, they talked a good game, but they're coming up short."
