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GM Ontario factory to add second delivery van to assembly line in 2023

The smaller BrightDrop EV410 will see production two years from now, with Verizon as its first customer

Ben Klayman, Reuters
Sep 28, 2021  •  September 28, 2021  •  2 minute read  •  Join the conversation
The BrightDrop EV410 electric commercial vehicle from General Motors
The BrightDrop EV410 electric commercial vehicle from General Motors Photo by General Motors

General Motors said on Tuesday its BrightDrop electric commercial vehicle business will add a second delivery van to its lineup in 2023 and has agreed to supply that vehicle to Verizon Communications Inc.

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GM said the medium-sized EV410, aimed at a segment that includes grocery, telecommunications, and other service providers that require smaller vehicles, will be built starting in the second half of 2023 at the company’s CAMI assembly plant in Canada. The Ingersoll, Ontario plant will start building the larger EV600 van in November 2022.

“We’re seeing incredible demand for these things,” BrightDrop Chief Executive Travis Katz said in an interview. “There’s right now a supply shortage, frankly, in the market.”

Katz, who joined GM from venture capital firm Redpoint Ventures, said EVs now make more sense financially for commercial customers that are focused on the total cost of vehicle ownership. GM claims the EV600 will save fleet managers US$7,000 annually compared with a similar diesel-powered vehicle.

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The commercial EV business is attractive because governments in China and Europe are pushing companies to slash CO2 emissions, and companies like FedEx, Amazon.com, and United Parcel Service have pledged to shift their large delivery fleets to EVs.

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In addition, EV leader Tesla has not cracked the market, and it has become a race for companies like GM, Ford, Stellantis, Daimler and startups Rivian, Arrival, and Electric Last Mile Solutions to introduce their EV delivery vans.

In June, GM boosted its planned spending on electric and autonomous vehicles by about 30 per cent, to US$35 billion and accelerated plans for two U.S. battery cell plants.

General Motors employee Anshul Shah attaches trim pieces onto the BrightDrop EV600, the company’s first all-electric light commercial vehicle purpose-built for the delivery of goods and services Friday, September 24, 2021 in Livonia, Michigan.
General Motors employee Anshul Shah attaches trim pieces onto the BrightDrop EV600, the company’s first all-electric light commercial vehicle purpose-built for the delivery of goods and services Friday, September 24, 2021 in Livonia, Michigan. Photo by Steve Fecht /General Motors

The Detroit company is using supplier Kuka to build the initial EV600 vans in Michigan. GM was able to develop that vehicle in 20 months, its fastest-ever timeline, Katz said.

To make way for the EV600 and EV410, GM plans to end production next April of the Chevrolet Equinox SUV at CAMI.

Both new EV vans will use a version of GM’s Ultium battery system and offer a driving range of 250 miles (400 km) between charges. GM has not disclosed pricing of either van.

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