General Motors plans to launch a new all-electric van called the EV600 by the end of this year. The first 500 vehicles will be sold to FedEx.
General Motors on Wednesday confirmed that it will add two new electric vehicles to its commercial lineup in the coming years, outside of its recently launched BrightDrop business.
GM CEO Mary Barra said the automaker plans to add a full-size battery electric cargo van for Chevrolet as well as a medium-duty truck for service and utility vehicles such as school buses and bucket trucks.
“Both will complement BrightDrop and keep our commercial fleet market share growing,” Barra told investors Wednesday during an earnings call. “We’ll share more details about these products as we move forward.”
Barra did not disclose timing or other details about the vehicles. The company is investing in the products as part of a previously announced plan to increase spending on electric and autonomous vehicle by 30% to $35 billion through 2025. But the vehicles aren’t expected to launch until after that timeframe, according to a person familiar with the plans.
The medium-duty truck will be offered as a battery-electric vehicle with GM’s Ultium Cells as well as its Hydrotec fuel cells, Barra said. The van will “exceed the expectations” of its customers who have purchased small GM vans in recent years, she said.
The commercial market is expected to be a major growth area for EVs. Other start-up automakers like Amazon-backed Rivian as well as legacy automakers such as Ford Motor and Daimler have announced plans to enter the segment.
GM announced BrightDrop in January as a new wholistic EV commercial and logistics business, separate from its current commercial business that focuses on small vans and pickups.