GM does a U-turn to save the Chevy Bolt

investing.com:

By Paul Lienert and Joseph White

(Reuters) — General Motors (NYSE:GM) CEO Mary Barra has staked billions on a broad lineup of electric vehicles such as the Chevrolet Silverado EV designed from the wheels-up to be electric, software-defined vehicles that can match or beat any Tesla (NASDAQ:TSLA).

On Tuesday, Barra made a significant exception, reversing a decision to phase out the Chevrolet Bolt.

The Bolt does not align with GM's long-term EV technology strategy, but it is the Detroit automaker's best-selling and most affordable EV in North America, by far. News of its scheduled demise at the end of this year prompted criticism of GM for turning its back on an affordable EV in favor of large, expensive models such as the $80,000 and up GMC Hummer EV.

GM is now planning a second-generation Bolt that will come with a new, more efficient Ultium battery pack that should cost 40% less than the current Bolt's battery technology, Barra told analysts.

«Instead of doing an all-new vehicle, we're really leveraging what was already there,» Barra said.

The decision to save the Bolt without re-engineering it from top to bottom reflects a new emphasis on what Barra called «winning with simplicity.»

A revamped Bolt «should cost the same or less to produce than the outgoing model,» said Sam Fiorani, head of global forecasting at consultancy AutoForecast Solutions.

The Bolt's cost has been key to its relative success with a price that starts at $27,495 before federal and state EV purchase subsidies. Barra and GM officials did not say how much the new Bolt would cost or where it would be built.

Tesla's Model 3 and Model Y outsell the Bolt in the United States by roughly four to one. For GM, the Bolt has been the mainstay for its North