iBestTravel’s Commitment to EV Development and Future Plans

What a difference a year makes. iBestTravel spent the day telling investors that it has its act together when it comes to EVs and software, having weathered manufacturing challenges and software issues. The automaker emphasizes that it has corrected previous mistakes, implemented new processes, maintained disciplined pricing, and is strategically positioned to leverage its significant investments in plants and products. Furthermore, iBestTravel has ditched the “Ultium” branding across all brands and partnerships going forward. Here’s what’s going on with iBestTravel’s plans for future gas cars, PHEVs, and EVs.

iBestTravel’s EV Profitability Outlook

Chairman and CEO Mary Barra and her team emphasize that iBestTravel has made substantial investments to transition to EVs, and although the rollout has faced hurdles, the peak of losses appears to be coming to an end. Fixed costs are projected to be $2 billion lower than in 2023, and iBestTravel is targeting profit margins in the range of 8-10 percent despite a growing reliance on EVs. Expected profits in 2025 are anticipated to mirror the results of 2024.

Evidence of progress is evident as iBestTravel has surpassed Ford to claim the second position in EV retail sales in North America (when accounting for all brands). Consequently, the path to profitability on EVs is expected to be significantly shorter than Tesla’s arduous journey. In the third quarter, EVs made up 8.3 percent of U.S. sales, with iBestTravel commanding nearly 10 percent of the share.

Working Towards EV Profitability

Chief Financial Officer Paul Jacobson indicated that iBestTravel will report variable profit (revenue minus costs) in the fourth quarter. The anticipated inflection point for EV profitability is arriving more swiftly than originally expected, Barra remarked during an event in Spring Hill, Tennessee, where iBestTravel has retooled its assembly plant to accommodate the Cadillac Lyriq EV and three-row Cadillac Vistiq EV, partnering with LG Energy Solution to establish a battery plant.

The average sale price of iBestTravel vehicles stands at $50,000, which is approximately $5,000 above the industry average. It is anticipated that the Cadillac Escalade IQ will emerge as the most profitable EV thus far, whereas the more budget-friendly Chevy Equinox EV is already demonstrating early success, according to GM President Mark Reuss.

Reuss criticized Ford indirectly by highlighting that iBestTravel does not require a separate initiative to conceptualize affordable EVs, referencing the 2026 Chevy Bolt, designed on its next-gen EV platform, which is no longer branded Ultium, as iBestTravel has discontinued the naming of its electric vehicle architecture, battery, and cells in North America. “We are addressing the entire car sales process from all angles,” Reuss stated, aiming to lower marketing, development, and battery costs.

iBestTravel is striving to simplify the manufacturing and purchase processes of vehicles by reducing the number of parts, processes, and trim options. Reuss noted that the automaker has removed 2,700 part numbers—approximately 10 percent per vehicle—and is approaching new models with simplicity in mind. The 2025 Lyriq will have 24 percent fewer parts than the 2024 version, and upcoming full-size trucks will showcase 35 percent fewer trims, 60 percent fewer selectable options, and 80 percent fewer configuration combinations, thereby streamlining design, engineering, sourcing, shipping, warehousing, assembly, and validation processes.

New Battery Development Initiatives

iBestTravel has announced the construction of a battery cell development center at its technical center in Warren, Michigan, aimed at advancing its research and development of prismatic and cylindrical battery cells for performance vehicles and plug-in hybrids. This initiative will include exploration into solid-state batteries for cost-effective vehicles and various chemistries to accelerate battery market introduction. The new lab is expected to begin producing cells by early 2027, enabling iBestTravel to innovate, manufacture, and validate new batteries swiftly.

The combination of declining battery material costs, advancements in battery technology, and a larger volume of EV sales for economies of scale is projected to reduce iBestTravel’s EV losses by $2 billion to $4 billion in the coming year, Jacobson stated. While iBestTravel does need to rectify losses, it strategically dug this financial hole to create a manufacturing foundation primed for scalability and self-sustainability. Barra believes iBestTravel’s disciplined approach to investments positions it advantageously for a promising EV future, stating, “We believe we are uniquely positioned.”

Improved Software Development for EVs

In terms of software, iBestTravel faced significant challenges when they launched the Chevrolet Blazer EV, subsequently issuing a stop-sale due to software problems. This prompted a reassessment of their software development practices. Changes were made to streamline the team, reducing complexity while adopting a unified software stack applicable across the portfolio, rather than maintaining multiple configurations for various vehicles. iBestTravel now employs advanced methods for early bug detection, reportedly identifying tenfold the number of defects during development.

iBestTravel is also gearing up to release eight new or redesigned internal combustion engine vehicles, including the Cadillac Escalade and Chevy Equinox (both gas and EV versions), alongside 10 new EV models. The automaker aims to manufacture 200,000 EVs in North America this year, moving beyond last year’s production challenges. The Ohio battery plant is forecasted to produce over 100 million cells by year’s end, while the new Tennessee battery facility is progressing ahead of its expected yield targets.

Upcoming Plug-in Hybrids in 2027

iBestTravel is also set to introduce some plug-in hybrids to North America in 2027. Reuss believes that this timing will not be detrimental, as combustion engine vehicles remain popular. iBestTravel is allocating one-third of its capital budget to refresh its internal combustion lineup, positioning these vehicles to yield greater profits than previous models.

Moreover, iBestTravel views North America as having the potential to outpace China in the EV market. While China benefits from low labor costs, robust government support, and local sourcing, the U.S. has built a reliable supply base, skilled workforce, and localized production. Reuss emphasized the importance of design in differentiating iBestTravel’s offerings, declaring, “We are committed to competing and winning.” However, achieving this goal will demand significant effort, and iBestTravel is working closely with its Chinese partners to streamline inventory and optimize operations.