General Motors is turning off the switch at its electric van factory.
The automaker s new BrightDrop commercial van subsidiary has officially started large-scale production of its cargo vans at GM's CAMI plant in Ontario, Canada.
The BrightDrop 600, which has 600 cubic feet of cargo space, has a driving range of 250 miles per charge, and is being delivered by DHL Express Canada.
Katz said the payback on energy and maintenance costs is quick and is more expensive than a diesel van up front.
The economics are quite compelling. Customers will save 10,000 per vehicle per year, and that is before the impact of EV credits is factored in, Katz said.
BrightDrop's closest competitor among major automakers is the Ford E-Transit, which is currently priced at $59,605 for a 487.3 cubic-foot model that has a range of 108 miles per charge. The E-Transit shares its platform with internal combustion-powered versions of the Transit that are also offered in retail and passenger van configurations.
By the end of 2023, DHL will add 2,000 E-Transits to its global fleet.
Katz did not say how many vans were purchased by DHL Express Canada, but the delivery company will also be testing BrightDrop's Trace eCart, which is a battery-powered cart designed for being pulled to and from the van with reduced effort.
The BrightDrop van was the fastest vehicle ever developed by General Motors, taking just 20 months from concept to first delivery. Katz said the company is on track to become one of the fastest to reach $1 billion in revenue, which it hopes to achieve in 2023.