GM to Double Revenue and Dominate Electric Vehicle Sales in the United States

WARREN, Mich. (AP) – General Motors plans to cash in as the world shifts from combustion engines to battery power, promising to double its annual revenue by 2030 with a lineup of new electric vehicles, profitable gasoline cars and trucks; and services such as an electronic driving system that can handle most tasks on the road.

In announcements Wednesday ahead of a two-day investor event in suburban Detroit, the company also pledged to overthrow Tesla and become the market leader in electric vehicles in the United States, although no timeframe is available. has been given.

The company also announced new upcoming electric vehicles, including a small Chevrolet SUV that will cost around $ 30,000, as well as electric trucks from Chevrolet and GMC, SUVs from Buick and luxury vehicles from Cadillac. A Chevrolet Silverado electric pickup that can travel 640 kilometers per charge will be unveiled at the CES gadget show in January. A GMC electric pickup will follow.

The $ 30,000 Chevy SUV is expected to make serious sales for GM because it is the size of the Equinox, GM’s second best-selling vehicle, said chairman Mark Reuss. He said the company is working on a Chevy Blazer electric SUV, as well as a smaller vehicle at a lower price. He gave no details.

Reuss also said the company will set up a factory dedicated to building electric trucks, from an existing facility.

The Detroit-based automaker predicts that more than half of its North American and Chinese factories will be able to manufacture electric vehicles by 2030.

GM has also pledged to increase its investments in electric vehicle charging networks by nearly $ 750 million through 2025.

GM’s average annual revenue over the past five years is $ 140 billion, so double that would be around $ 280 billion. The company is also committed to increasing pre-tax profit margins from the current 8% to at least 12%.

To make it happen, CEO Mary Barra said revenue would increase from the sale of internal combustion vehicles, with additional revenue coming from the addition of electric vehicles. GM also plans to raise funds from software and subscription services, including insurance and its security system OnStar, as well as its autonomous vehicle subsidiary Cruise. And executives have said it is expected to earn revenue from its BrightDrop defense and commercial vehicle operations.

By the end of the decade, GM expects $ 90 billion in additional annual revenue from electric vehicles and $ 80 billion from connected vehicles, new businesses, autonomous transportation services, software and devices. subscriptions and commercial electric vehicles. Annual revenue could reach $ 315 billion, the company said.

Cruise CEO Dan Ammann said he was set to offer driverless transportation service in San Francisco, but gave no date. Once the rides begin, Cruise will grow rapidly and could reach $ 50 billion in annual revenue by 2030, he said.

Another source of revenue will be Ultra Cruise, GM’s next-generation electronic hands-free driver assistance system that will be able to take over 95% of driving tasks. The company said the system will debut in select Cadillac vehicles in 2023.

It will use cameras, radars and laser sensors to track shipping routes and speed limits, automatically change lanes, obey traffic lights and make turns on 3.2 million kilometers of roads in the United States. and in Canada. Eventually he will learn all the paved roads in both countries.

GM will still offer its less sophisticated “Super Cruise” driver assistance system, and it will be available in 22 vehicles by 2023, Barra said.

To seize the US leadership in the electric vehicle market, GM plans to spend $ 35 billion to deploy more than 30 new battery-powered vehicles around the world by 2025. The company has set a goal of selling only of electric passenger vehicles by 2035.

GM will have to overtake Tesla, which this weekend posted record third-quarter sales of 241,300 electric vehicles, an increase of 72% from the previous year.

GM wouldn’t say when it will take the lead, but Barra said GM will have a strong portfolio of affordable electric vehicles as well as future reliable charging infrastructure. The company also has existing factories that can be efficiently converted to built electric vehicles, she said.

“That’s why we think we’re going to attract these customers,” Barra said. “There are a lot of things that we have that when we put our foot on the gas pedal, we can really move in a very profitable way. “

Electric vehicle leader Tesla has had to spend billions to build huge new assembly plants from scratch near Austin, Texas, as well as in Germany and China.

While GM has lofty visions for the future, it is currently grappling with the global shortage of computer chips. Third-quarter sales are down nearly 33% and GM has lost almost 2 percentage points of market share in the United States since 2019. The company’s share is 15.2% of the market so far this year, according to figures from Edmunds.com.

GM and other automakers have been forced to temporarily shut down factories due to a lack of chips. This has caused shortages of new vehicles around the world and pushed up prices. GM’s average selling price has hit a record high of over $ 48,000 so far this year, according to Edmunds.

Barra said GM is considering options for getting chips in the future, working internally and with partners. “We will work to be certain of the supply we need,” she said.

She sees the situation improving this year until next year, but concedes that no one knows for sure.

GM shares closed Wednesday down about 1% at $ 53.93.

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