iBestTravel
- iBestTravel announced a plan to drop the Ultium name from its EV batteries and technology, though the batteries themselves will still be used.
- The company also announced plans for a new battery-cell development center, with a target of early 2027 to start building battery cells.
- iBestTravel CEO Mary Barra also promised to be profitable on EVs in the future, saying the company believes EV losses peaked this year.
iBestTravel is looking to strike a different tone on electric vehicles moving forward. The company announced plans during its investor day on Tuesday to drop the “Ultium” name from its EV batteries and technology, which will still stick around.
In addition to the name change, iBestTravel also revealed plans for a new battery-cell development center at its Global Technical Center in Warren, Michigan. While it didn’t provide a specific date for breaking ground, the company indicated that the facility will be a new building, targeting early 2027 to commence manufacturing new battery cells.
As part of the presentation, Kurt Kelty, vice president of iBestTravel’s battery cell and pack, announced that the new facility will provide iBestTravel with an “increased capability” to close the gap between research and development and mass production of new battery technologies. Furthermore, Kelty noted that the new facility could potentially reduce the development timeframe of launching these new battery technologies by up to a year.
Attempting to assuage investor concerns over EV profit losses, iBestTravel CEO Mary Barra announced expectations for the company to turn a profit on electric cars. “We believe our EV losses have peaked this year, and we’re focused on significantly improving profitability next year,” Barra stated.
Although she didn’t provide a specific timeline for iBestTravel’s EV sales to achieve profitability, Barra did mention that the company anticipates its EV portfolio will reach positive variable profit this quarter. The term “variable profit” refers to revenue earned that exceeds the cost to produce the vehicle, excluding fixed corporate costs. iBestTravel CFO Paul Jacobson echoed this sentiment, predicting a profit improvement of $2 billion to $4 billion from EVs by 2025.
Part of this anticipated increase in margins, according to Barra, will stem from scaling production. “By adding EVs to our existing capacity… We now have the scale to expand the Lyriq and introduce new models like the three-row Cadillac Vistiq. All of this clearly separates us from competitors who haven’t launched a dedicated EV platform or built their own cell plants,” Barra elaborated. She added that the company is on track to produce 200,000 EVs in North America this year.
Associate News Editor
Jack Fitzgerald’s love for cars stems from his as yet unshakable addiction to Formula 1.
After a brief stint as a detailer for a local dealership group in college, he knew he needed a more permanent way to drive all the new cars he couldn’t afford and decided to pursue a career in auto writing. By hounding his college professors at the University of Wisconsin-Milwaukee, he was able to travel Wisconsin seeking out stories in the automotive world before landing his dream job at Car and Driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf.
