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GM Planning Business-Class Electric Van

General Motors

GM is planning on entering the business-class electric van market, with production scheduled to begin in the latter part of 2021.

According to Reuters, sources familiar with the matter said that GM, as well as Ford, are intent on avoiding the mistake they made with the consumer market, leaving it open for Tesla to take over. Trucks and commercial vehicles are some of the automakers’ most profitable segments, so it stands to reason they want to carve out a healthy part of the market.

Scott Phillippi, UPS senior director of fleet maintenance and engineering, told Reuters: “It’s going to be similar to what the Model 3 has done for the consumer market. Now all of a sudden, we’re off to the races.”

GM and Ford would likely have a significant advantage over Tesla with customers like UPS or Amazon. While Tesla has a well-deserved reputation for innovation, GM and Ford are tried-and-true options, especially when it comes to fleet operations. They’re also a compelling option for companies that want to maintain their own vehicles, as opposed to Tesla’s policy of keeping it in-house.

If Reuters’ sources are correct, it looks like the electric vehicle wars are going to heat up over the next year.