General Motors is reportedly entering the commercial electric delivery van business with the intention of becoming a major supplier to companies such as Amazon and UPS. According to sources familiar with the matter, GM is now in the process of developing new fully-electric van models to take advantage of the recent e-commerce and door-to-door delivery demand surge caused by the pandemic.
Apart from GM, major US carmakers such as Ford are reportedly also applying the same strategy. Given the expected rapid growth of the relatively new automotive segment, it would be foolhardy for automakers to miss the opportunity to become major players.
As of the moment, the segment, along with other battery-powered vehicles, still represent a small fraction of the entire industry. However, that may very well change in the coming years. GM has not made any official announcements yet that it would be offering a new electric delivery van model but the company did previously stated that it plans to release at least 20 new EV models by 2023.
Sources familiar with GM's strategy claims that the new electric van, internally codenamed BV1, will begin production sometime in late 2021. The van will reportedly share the same platform as its future electric sport utility vehicles (SUVs) and pickup trucks.
This will include the use of GM's new Ultium battery system, which it had developed for its future EV models. The same sources claim that the EV van could be assembled alongside other electric models at GM's plant in Hamtramck, Detroit.
It is not yet clear if GM would be selling the alleged new electric van under its own brand or through its sub-brands. The company is expected to likely go for the latter strategy, similar to how it plans to sell its first electric pickup truck through its Hummer brand.
A source from one of GM and Ford's suppliers claim that the Detroit automakers do consider trucks and commercial vehicles as one of their largest segments. Given this fact, the companies likely do not want to lose the opportunity to startups such as Tesla to become major suppliers in the evolving segment.
Ford is currently one step ahead of GM given the company's recent investment in Michigan-based electric startup, Rivian. Amazon has already made an order for 100,000 Rivian-built mid-sized electric vans, which it expects to be delivered next year. Ford also announced back in February that it will be introducing an EV version of its Transit van model sometime in 2022.
