General Motors Plan to Do Electric Delivery Vehicle Business

General Motors launched a brand new electric delivery vehicle business called BrightDrop. BrightDrop is the first new GM brand since Hummer in 1998. The brand is only focused absolutely on commercial customers. The company is planning to create an electric vehicle as delivery solutions for customers.

In fact, BrightDrop is not only a new brand but also a new business entity. The goal is to provide a complete suite of services and products for mile deliveries. 

The EV600

The company will produce its new vehicles, named EV600. The product is different from any previously built vehicles. GM predicts the vehicle is useful to distribute packages.

The EV600 will be able to run up to 250 miles in a full charge. GM will sell it through an independent sales and service network. The van is using the Ultium battery system which GM has spent a billion dollars on future electric vans.

The First Customer

The brand has been working with FedEx to try its new system of delivery. In line with that, FedEx Express becomes its main customer. The company will supply its brand new vehicles early this year. General Motors said that the company will also supply EV600 late this year. The automaker is planning to deliver vehicles to other customers early in 2022.

Pamela Fletcher, the vice president for global innovation of GM said, other companies also have interests in the new brand but the company isn’t pinpointing any potential clients yet. 

BrightDrop Through 2030

BrightDrop joins several startups going into the electric delivery vehicle business. Putting the automaker in competition with other startups such as Canoo, Rivian, and Arrival. GM assumed that by 2030 the request for the vehicle is estimated to grow by 78%. 

General Motors plans to operate a new distinct dealer network for BrigthDrop. However, GM did not share any information about how the dealer network will operate or the costs of any vans. 

The EP1 is like a rolling cabinet. According to General Motors, the couriers of FedEx Express were able to manage 25% more packages in the course of a pilot program.

BrightDrop will only focus on distributing electric vans and correlated services to commercial customers. Pamela Fletcher said that the BrightDrop is a large delivery van with built-in internet connectivity and several safety features. 

BrightDrop is also functioning on a medium distance distribution van. It can bring multiple EP1s around encircled space such as warehouses or campuses.

In addition to the van, BrightDrop will provide a wide range of services such as up-fitting services and fleet management. All vehicles provide charging supports which would be helpful to large fleets.

GM predicts that the delivery markets will hit more than $800 billion by 2025. The increasing demand and cheap operating cost make the EV600 a perfect fit for a delivery van.

GM has not publicized a place to build EV600, but given its unveiling this year. It will almost certainly, Factory-Zero, which is formerly an assembly plant for Detroit-Hamtrack.

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