• BrightDrop has delivered its first electric vans out of its Ontario plant.
• The BrightDrop startup is a division of General Motors.
• The firm was created two years ago by GM to provide electric solutions for businesses.
• By 2025, BrightDrop plans to assemble 50,000 vehicles annually in Ontario.
Amid all the new model introductions at the New York Auto Show this week, the industry outside of the Big Apple goes on. For instance, news from Ontario that BrightDrop, the fledgling company founded by General Motors (GM) and dedicated to commercial electric vehicles, has started delivering models.
Its EVs are assembled at the CAMI plant in Ingersoll, Ontario. That plant has just sent out for delivery its first 500 models. Cause to celebrate.
Production of the 2023 model-year BrightDrop Zevo 600 vehicles has been completed, but asswembly of the 2024 editions is about to begin. In fact, the company announced that Ryder System Inc. plans to add 4,000 electric vans to its rental fleet by the end of 2025. The first 200 should be delivered this year.
GM launched BrightDrop two years ago and since then, more than 30,000 orders have been placed for the Zevo 600 van. Already, BrightDrop has more than 30 commercial customers, including FedEx, Walmart, Hertz and Purolator, to name a few. Distribution giant FedEx has already received 150 vehicles. These were built by a supplier last year while the CAMI plant was still being transformed for its new purpose.
There is real interest among companies for electric vans. Come to think of it, this is the sector where electrification makes the most sense, in every respect. In fact, the segment is growing rapidly. Experts predict that it will generate $1 billion in sales by 2023 and grow to $10 billion by 2030. GM expects BrightDrop to approach 20 percent profit margin by the end of the decade.
BrightDrop intends to produce 50,000 units annually by 2025. Production of the smaller Zevo 400 van will begin later this year.
The company is taking reservations today for its 2024 model-year vehicles, with deliveries expected to begin in mid-2023.