RIP Chevy Bolt: Bad Decision or Strategic Move?
By Edward A, Sanchez — April 25, 2023
In General Motors’ Q1 2023 financial results presentation, GM CEO Mary Barra announced that the Chevrolet Bolt and Bolt EUV would end production by the end of 2023. While this development was not entirely unexpected, the timing of it was a surprise to many, especially considering the Bolt and Bolt EUV set a combined quarterly sales record of 19,700 in Q1 2023. Many assumed the Bolt had a few more years left, and would be eventually transitioned to GM’s new Ultium platform. There’s a lot of irony and seeming contradictions in this development, but looking at the bigger picture, it’s not hard to see why the Bolt’s days were numbered.
The Bolt may go down in history as significant for GM as the EV1 was in the 1990s. I know that’s a bold statement, but hear me out. First of all, cumulatively, the Bolt has massively out-sold the EV1, which was only offered as a closed-end lease, and was unceremoniously repossessed from its owners when GM decided it was ending support for the program. No such provisions and restrictions were applied to the Bolt.
There are an estimated 140,000 Bolts on the road from when it went on sale in late 2016. While this is an impressive number, it pales in comparison to the number of Tesla Model 3 and Model Y sales, which have reached an estimated total of more than 1.5 million as of Q2 2022. The specific breakout between the 3 and Y is somewhat tricky, as Tesla started combining sales figures in 2020. So somewhat of an apples-and-oranges comparison, but arguably applicable, since Bolt and EUV sales are also combined.
The Bolt may go down as one of General Motors’ most important EVs.
The other interesting story on the Bolt is its dramatic price reduction over the years. At launch, the Bolt started at $37,495 before applicable credits, making it a net sub-$30,000 vehicle on-paper. The Tesla Model 3 launched with an effective price of about $39,000. Tesla’s prices are notoriously volatile, going up and down on a quarterly, and sometimes weekly basis, much to the frustration of customers.
Most recently, the Bolt’s starting price hit $26,500, a significant drop from when it was introduced, and making it accessible to a much larger potential pool of buyers. The slightly larger EUV starts at $27,800. Both are an objective bargain considering their 200-plus range. Neither are particularly plush or premium, but offer a compelling level of content for their competitive price.
Battling through controversies brought about by battery fires, Chevrolet pressed on with the brand, releasing the Bolt EUV and iterations thereof, like the Redline Edition.
Of course, no story on the Bolt would be complete without mention of the massive recall that affected nearly every unit built from 2017 to 2021. As was appropriate, battery partner LG Energy Solutions took a large portion of responsibility for the recall, sharing a little over half the cost of the recall effort.
While the Bolt was the butt of late-night jokes and memes for a season, consumer appeal and sales rebounded, as evidenced by its latest quarterly sales. The Bolt’s exterior refresh for the 2022 model year, in addition to the more practical EUV variant, helped its appeal, not to mention the drastic price reduction.
But in reality, the current Bolt’s days were probably numbered regardless for a variety of factors. While the EUV put somewhat of a crossover spin on the model, at its core, the Bolt was a somewhat awkwardly proportioned hatchback, a body style traditionally spurned by American consumers. Also, its chassis and platform is pre-Ultium, the new modular EV chassis that GM is adopting across its future EV lineup.
The announcement that the popular Equinox and Blazer would be offered in EV variants, as well as ultimately smaller models, signaled that the Bolt would probably be eventually nudged out of the lineup. Could the name make an eventual return? Possibly. But considering the baggage from the recall, it’s more likely that either a new or historic name will be revived for an eventual sub-Equinox model.
There is little disputing that the Bolt was and is a significant chapter in GM’s EV history. Whether or not it’s the most important chapter remains to be seen. But from the standpoint of producing and selling a high-volume, mainstream long-range EV model, it is a significant milestone for which the company should be proud.
(Images courtesy Chevrolet)
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