Automaker boss Mary Barra has previously hinted at the car, a new version of his popular Equinox model, saying launching the most affordable zero-emission car is a priority.
It will cost less than half the average price of a new electric vehicle in the US.
The SUV will be based on the Ultium electric battery platform, which the group has bet heavily on. Introduced in 2020, the Ultium is expected to be flexible enough to adapt to the various models sold by the group and thus lower costs.
Following Tesla, many companies have rushed into the niche of electric vehicles, both startups and traditional manufacturers. And after a slower start in the US than in Europe, more and more models are starting to be introduced.
The Jeep brand of the Stellantis group announced on Thursday that it will launch four electric SUVs in North America and Europe by 2025.
The average price of a new car in the US rose to more than $48,000 in July, according to Cox Automotive. And electric cars, because of the cost of batteries, are more expensive than cars with internal combustion engines: on average, they cost almost $67,000.
The base price of the most affordable Tesla, for example, starts at $47,000. Elon Musk has promised a $25,000 car by 2023, but has put the project on hold for now.
General Motors already offers an electric Chevrolet Bolt for about $27,000, but it’s a compact car that Americans are increasingly neglecting. It also faced several recalls due to the risk of battery fires.