GM To Launch Electric Delivery Van For Business Fleets In Late 2021

Marco Green
June 7, 2020

General Motors is now developing an electric van targeting business users, in a similar fashion to Rivian and its zero-emissions van developed for Amazon.

Reports of a new GM commercial vehicle come as automakers and startups alike rush to make electric delivery vans, catering to a surge in demand among logistics companies for last-mile delivery solutions.

GM has previously said that it will introduce 20 new all-electric models by 2023, with a wide range of body styles possible under the company's upcoming BEV3 architecture and Ultium battery-and-propulsion toolkit.

The model, according to Reuters, is code-named BV1 and due to start production in late 2021-placing it within a half-year of the arrival of the GMC Hummer pickup and SUV and the Cadillac Lyriq electric SUV.

Secondly, it's a natural next step to the all-electric pickup trucks, as many parts (including drive units and Ultium battery packs) might be shared with commercial vehicles.

GM is considering whether to offer the electric van through its traditional truck brands - Chevrolet and GMC - or market it under a different brand such as Maven, the sources said.

Citing other reasons why the delivery van is a good candidate for electrification, Morgan Stanley said the vehicles perform "high-value services" and typically stay within a specific geographic area, "all of which fits well with EV infrastructure and charging ecosystems which enable their full economic use". For established players, this is a hugely profitable business segment driven by cost of ownership, not fancy tech or star power. So far there's been no Model 3 moment for that sector.

For larger companies, EVs' lower maintenance and the second-use potential with longer-lasting batteries are altogether very attractive.

(File photo used for representational objective only). Ford has announced an electric Transit van that's expected to launch in 2021. "The most critical bet we will be making over the next several years will be our commercial vehicles", Ford's chief operating officer, Jim Farley, told Reuters at the time. (NASDAQ: AMZN) arguably kicked off the race a year ago, with the announcement that it was ordering 100,000 electric delivery vans from Rivian, with a planned arrival date in 2021. Startups such as Arrival, Chanje, Enirde and XoS have received orders for electric vans from package delivery companies such as Ryder and UPS. However, the project, when combined with Ford, Rivian, and other EV makers, is a potentially multi-billion-dollar idea that could help the companies build and deliver a substantial amount of electric cars.

Tesla does not have an electric delivery van.

This story has been published from a wire agency feed without modifications to the text.

Other reports by Click Lancashire

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