Why GM Suddenly Put A Halt On Hummer Sales

GM has stopped taking orders for its new Hummer EV due to the overwhelming number of initial orders that have created a waiting list that is now years long.

By Jennifer Hollohan | Published

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Most car manufacturers have made a public commitment to produce more electric vehicles (EVs). They are all in various stages of ramping up the production of their EV offerings, including GM. So it came as a surprise when news got out that you can no longer order its highly sought-after Hummer EV.

When the carmaker announced pre-sales for a Hummer EV would open, they received significant and rapid consumer interest. They are currently facing a backlog of 90,000 pre-orders for the large SUV. About half the orders are for the truck model and half for the SUV.

Given the hefty price tags, ranging from $84,650 to $104,650, the quantity of pre-orders means a significant financial boost for GM. The problem is they cannot keep up with demand. In the first half of the year, they only delivered 400 of the pickup model and none of the SUVs.

According to CNN, the company plans to start chipping away at the SUV orders by early 2023. Due to the backlog of orders and the continued interest in the Hummer EV, GM has officially closed pre-orders. They have offered no indication when ordering ability will open back up. 

And the Hummer EV is not the only electric vehicle waiting in the production wings. The company recently made news due to its partnership with Hertz. GM plans to manufacture and sell 175,000 EVs to the rental company but expects the order will take at least five years to produce. 

hummer ev
GMC Hummer EV

Given the current trouble fulfilling existing orders, GM may struggle to meet its zero-emission goal of 2035. But, they are not the only car manufacturer facing production issues. Ford and Tesla are in a similar predicament. 

The backlog for orders on Ford‘s Mustang Mach-E SUV, EV pickup, and F-150 Lightning is years long. They are doing slightly better than GM, with roughly 6,800 vehicles delivered at the last count. But they had to shut down orders on the F-150 Lightning for the same reason Hummer EV sales ceased.

Even Tesla, the leader in electric vehicle production, does not keep significant inventory in stock. A company report from June showed they only have four days worth of SUV inventory available. And given that they do not produce gas-powered vehicles, the low inventory count is surprising.

So, why are these major manufacturers facing so much difficulty fulfilling their orders? The main reason is the limited availability of lithium, which is required to make the batteries. And on top of that, most do not have plants able to produce the number of batteries needed.

GM and most other major car makers have committed to investing in factories for the much-needed batteries. However, those plants are either still in the planning stages or under construction. It will likely be a few years before they are churning out enough EV batteries. 

That is likely unwelcome news for everyone who already purchased a new Hummer EV. Plus, GM has not provided a production timeline. So, there is no telling when they will deliver the promised vehicles.