What happened
Shares of General Motors (GM 4.45%) were tumbling Wednesday morning. The stock dropped as much as 5.5% in early trading and remained lower by 4.5% as of 10:45 a.m. ET today.
The drop comes after the company confirmed the departure of the executive who was the face of the company's transition to electric vehicles (EVs). It also didn't help investor confidence in the automaker when it said supply chain problems will keep its Mexican truck plant idle for longer than first planned.
NYSE: GM
Key Data Points
So what
GM hired Deborah Wahl in 2018 and promoted her to the role of global chief marketing officer one year later. Wahl had the key role as the public face of the company as it transitions from internal combustion engines to a fully electric lineup. GM confirmed yesterday that Wahl will step down at the end of this month, and it said it will conduct an external search for her successor.
The company also said yesterday that its Mexican factory that makes Chevrolet and GMC pickup trucks will remain closed due to supply chain issues. It previously said the factory in central Mexico would suspend production for about a week, but that has now been extended to at least two weeks.
Image source: General Motors.
Now what
GM plans to bring 30 new EV models to market over the next five years. It expects to offer only EVs by 2035. As global chief marketing officer, Wahl was responsible for guiding the company through that transition.
GM didn't specify what the supply chain issue is in Mexico, but if that gets resolved soon, it shouldn't hurt GM's financial results. Inventory levels often affect production volumes, and the company recently paused pickup truck production at its U.S. plant to optimize inventory levels.
But the loss of Wahl could change how GM markets its new vehicle lineup. Investors will have to see who replaces her and what direction her replacement takes as competition heats up in the EV sector.
