GM Stops Bookings For Hummer EV Pickup, SUV On Surging Demand - General Motors (NYSE:GM)

General Motors Corporation GM said on Wednesday that it would stop accepting reservations for the all-electric GMC Hummer pickup and GMC Hummer SUV, according to a CNBC report.

What Happened: General Motors saw over 90,000 reservations for both pickup and SUV. This demand has led to the Hummer EV reservations being fully booked. As a result, the company said it plans to close reservations from Thursday.

The automaker will attempt to fill the current list of reserved automobiles, which extends at least through 2024.

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According to the report, Duncan Aldred, the global head of GMC, said while speaking to CNBC at the Detroit car show last week that for the Hummer EV — SUV and pickup — next year will be “big.” 

“We knew it would be a slow ramp. But next year, when you look at the calendar year, I think you’ll see a normalized year,” Aldred told CNBC.

Why It’s Important: The number of reservations is noteworthy given that the vehicles’ starting pricing range from $85,000 to $110,000.

GM’s decision follows Ford Motor Company F shutting down reservations for its F-150 Lightning electric pickup after hitting roughly 200,000 units in December 2021. According to an earlier CNBC report, Ford Chief Executive Jim Farley said, “We had to stop taking reservations because we had so many.”

He added that Ford originally installed production capacity for 70,000-80,000 Lightnings a year and aims to double that over the next two years.

Price Action: General Motors’ stock closed 3.5% down at $37.68 on Wednesday, according to data from Benzinga Pro.

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Image and article originally from www.benzinga.com. Read the original article here.