(NewsSpace.com) – Over the past few years, there’s been a noticeable shift toward electric vehicles (EVs) despite the kinks that need to be worked out. The Biden Administration is also pushing for them over gas-powered vehicles because of clean air initiatives. Now, one major manufacturer is doing away with one of its models to make room for EVs.
On Wednesday, May 8, General Motors announced it was shutting down the production of its Chevy Malibu. That’s the second time the vehicle will be discontinued in its 60-year history. The money the company frees up from removing the Malibu from Chevrolet’s lineup will go toward investing $390 million in its Kansas plant to produce the Chevy Bolt EV. Those funds will “facilitate the installation of tooling and other plant modifications,” per a GM spokesperson.
The production of the Malibu will end in November. Then, after January 2025, the company plans to pause production on the Cadillac XT4. That halt will be temporary, however. The goal is to have the assembly line at the Fairfax Assembly Plant make both the XT4 and the Bolt EV. The facility is expected to get that production up and running in late 2025.
This marks the second time that GM has removed the Malibu from its lineup. The first time was in 1983, nearly 20 years after it was first introduced in 1964. The car made a comeback in 1997 but lagged behind other foreign vehicles of the same caliper, the Toyota Camry and the Honda Accord.
It could potentially affect the company’s bottom line, as it remains one of the more affordable sedans in its lineup. However, the impact is likely to be small as the US population has geared more toward sport utility vehicles over cars, compact vehicles, and hatchbacks. That’s evident in the decline of sedan sales at popular foreign automakers such as Honda, Hyundai, and Toyota.
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