GM reveals van EV as part of new business unit; FedEx first customer

General Motors plans to launch a new all-electric van called the EV600 by the end of this year. The first 500 vehicles will be sold to FedEx.

GM

General Motors said on Tuesday that it plans to launch a fully electric van called the EV600 this year.

The van – part of GM’s plan to invest $ 27 billion in electric and self-driving vehicles by 2025 – will be the first vehicle in a new GM commercial business unit called BrightDrop. The EV600 will have a capacity of up to 250 miles per load, according to Pam Fletcher, vice president of global innovation, who will oversee the new division.

“The game changer about BrightDrop is that it is a one-stop-shop ecosystem,” said Fletcher. “From end to end, BrightDrop can help with the deliveries that fleets need.”

Fletcher declined to discuss prices and other details, but she said BrightDrop products would be sold through a new independent sales and service network. She said GM has a complete portfolio of electrical products, not just vehicles, planned for BrightDrop.

The first 500 vans will go to FedEx earlier this year, said Fletcher. The widest availability of the vans is expected in early 2022. The EV600 is GM’s first commercial vehicle with GM’s next-generation Ultium battery system, on which the automaker spent billions as the basis for future EVs.

GM’s first BrightDrop product will be the EP1, a propulsion-assisted electric pallet designed to easily transport goods over short distances – for example, from the delivery vehicle to the customer’s front door.

GM

The commercial market is expected to be a high growth area for EVs. Other start-up automakers, such as Rivian, backed by Amazon, and also traditional automakers, such as Ford Motor and Daimler, have announced plans to enter the segment. GM estimates that the combined market opportunity for orders, food delivery and reverse logistics in the U.S. will be more than $ 850 billion in 2025.

The EV600 will be the second product of the new BrightDrop brand. The first will be a propulsion-assisted electric pallet called EP1, said Fletcher. It is designed to easily transport goods over short distances – for example, from the delivery vehicle to the customer’s front door. It is expected to go on sale earlier this year, said Fletcher.

“The interest in these products has been enormous,” said Fletcher. A pilot pallet program with FedEx last year found that drivers were able to deliver 25% more packages a day, she said. Pallets, like all company products, will be electric and will have connectivity and tracking for logistical purposes.

BrightDrop CEO Travis Katz, who joined the carmaker this month from venture capitalist Redpoint Ventures, said the company’s mission is to develop a new line of “smart, connected products and services” with the goal of helping commercial companies to improve employee efficiency and safety.

GM’s first BrightDrop vehicle will be the EV600 – a light commercial electric vehicle built specifically for delivering goods and services with a range of up to 250 miles per charge.

GM

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