Coronavirus Puts Brakes On General Motors' Lyriq EV Launch

General Motors Company (NYSE:GM) recently announced that the launch of Cadillac’s all-electric crossover, the Lyriq, has been cancelled over coronavirus concerns. At its massive EV event held last week, the top U.S. automaker unveiled plans to spend more than $20 billion through 2025 to launch gen-next EVs powered by new-low cost batteries. Notably, the all-electric crossover Cadillac Lyriq was supposed to be the first among the several battery-powered vehicles to get launched. However, amid fears of the deadly virus, the company is re-evaluating plans for rolling out the latest crossover, which was earlier scheduled to debut at a special event on Apr 2, 2020 in Los Angeles.

While Lyriq won't be the first new EV to reach the market, several others — including a second-generation Chevrolet Bolt EV, a Bolt EUV (Electric Utility Vehicle) and the GMC Hummer electric truck — will precede it.

The Lyriq, which is expected to be available for sale in 2023, will be manufactured at General Motors’ Detroit-Hamtramck Assembly Plant. The crossover will be built on General Motors’ new, modular platform for electric vehicles (EV), called Ultium that incorporates adaptive battery packs with a capacity of 50-200 kWh. It will be a mid-size two-row crossover with seating for five and is anticipated to go as far as 400 miles on a single charge.

The coronavirus outbreak has also impacted General Motors’s daily operations. The company is limiting travels outside its Detroit Headquarters to protect workers, while the employees have been instructed to have meetings with dealers and suppliers over video calls.

Apart from General Motors, COVID-19 is posing concerns for various other global auto biggies like Groupe PSA, Ford (NYSE:F) , Fiat Chrysler (NYSE:F) , Honda Motor (NYSE:HMC) , Nissan and Renault (PA:RENA), all of which have manufacturing plants in Wuhan — China’s motor city. As part of the nationwide shutdown, many automakers have closed their factories and their production and sales have gone for a toss. The epidemic has not only dented consumers’ sentiments and waned vehicle demand but also triggered supply-chain issues on a global scale.

General Motors currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 26.6% in the past year against the industry’s rise of 16.5%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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