Joseph White

DETROIT, (Reuters) – General Motors Co’s $35B electric vehicle strategy is set to face the biggest test when it launches its Chevrolet Silverado electric pickup at a price of six figures in 2023. This launch will be more than a year later than rivals Rivian Automotive and Ford Motor (NYSE.) Co.

Mary Barra, Chief Executive of GM, stated via video Wednesday that the electric Silverado would launch in two phases in 2023. The first stage will begin in the second quarter and will include a work truck weighing $39,900 that will only be available to a select number commercial fleets. GM will begin delivering an outdoor-oriented consumer model in the fall 2023. Its price tag is $105,000 more than that of an electric Mercedes EQS sedan.

Chevrolet officials told Barra in briefings that Silverado’s electric Silverado will soon be cheaper for retailers. Barra’s speech was to be delivered online by GM after the Omicron coronavirus spread.

In a segment where some of Detroit’s most successful vehicles are sold, the launch of the electric Silverado escalates the battle for customer loyalty and sales. Startup Rivian Automotive’s R1T, an electric pickup that was shown for the first time in 2018, and Tesla Inc (NASDAQ) Inc Chief Executive Elon Muss’s polarizing vision of an all-electric pickup known as the Cybertruck, prompted the Detroit Three, to increase the development of electric pickups.

It is not yet known when the Cybertruck will launch. The launch date of the Cybertruck is still unknown.

An electric Silverado, based on the GMC Hummer EV’s same architecture, will join the race for fleet buyers and consumers, a little over a year ahead of the F-150 Lightning. This gap is a result of the contrast in strategic decisions made by long-time competitors.

Barra and GM President Mark Reuss are betting GM will win in the long run by first developing dedicated electric vehicle architectures and a vertically-integrated battery and motor production chain, then launching electric vehicle models in high volume during the middle and latter part of this decade. GM executives believe that the cost of its proprietary Ultium technology, which is more affordable than other competitors, will give them a significant advantage.

Ford chose a completely different route. This spring, Ford will deliver the F-150 Lightning. It’s a modified gasoline version of the F-150.

Ford’s strategy was more rapid, with Ford Chief Executive Jim Farley declaring last month that it had to limit the number of reservation requests from the public for its truck at 200,000.

Farley has been pushing hard to get as many Lightnings built as possible, before GM’s Silverado (and other contenders) hit the markets. Ford stated Tuesday it plans to increase its production capacity at Rouge, Dearborn, Michigan. up to 150,000 vehicles annually. Ford announced last September it will increase Lightning’s capacity to 80,000 vehicles from 40,000.

Ford is also working with SK Innovation as a battery partner on a $11.4 billion network for vehicle assembly and battery manufacturing plants in Tennessee, Kentucky.

Ford and GM are both targeting commercial fleet customers, with electric pickups that cost just under $40,000.

GM announced that the Silverado EV’s WT (or work truck) version will be 400 miles in range. It will initially go to a few fleet customers who have already signed deals. Steve Carlisle from GM North American Operations stated that GM plans to ship “tens or thousands” of electric work truck.

Ford and GM have different ways of winning customers in retail. For retail customers, the F-150 Lightning has a range of 300 miles and can hold 400 liters. The front trunk also functions as a beverage cooler. There is an option to allow it to turn on a power source for a house in case there’s a blackout. You can tow 1,800 pounds. Consumer Lightning started at $52,974 (excluding tax), before Ford increased the limit on orders.

Retail buyers can purchase the electric Silverado SST with a 400 mile range and a “midgate” at the rear of the cab. This allows for kayaks or surfboards to be carried, but it will carry less cargo. It won’t have a backup generator when it launches.

Carlisle stated that the generator function was “very much on our radar.” Chevrolet spokeswoman, claiming that bi-directional charging will allow for the powering of a home within one year.

GM executives stated that they would emphasize Silverado’s exceptional range of products in the advertising campaign, which will begin this year.

GM’s move to charge European luxury car prices on the Silverado RSTs is similar to the strategy used for the Hummer EVs. They started at more than $110,000 but are now priced starting at $99,995 – nearly twice the average transaction cost for a GM vehicle.