Detroit-General Motors Co. plans to position itself as a technology platform company that’s as focused on software as it is on building electric vehicles (EVs), when it meets with investors next week, including fewer Including disclosing a scheduled rollout for less than 20 EVs. United States over the next several years.
1 US automaker said on Wednesday it will talk about its growth strategy, advantages of EV and software platforms, its self-driving vehicle business and related financial road maps as it seeks to attract new investors and closer wants to evaluate. EV market leader Tesla Inc. A spokesperson declined to disclose further details.
GM officials will provide a more detailed look at the company’s plans to spend $35 billion through 2025 on EVs and autonomous vehicles and revenue and profit margin growth targets for the five-year period after that, according to those familiar with the plans. According to people who asked not to be identified.
“GM has gone from an automaker to a platform company and here are all the things you can do,” said one of the sources.
“The question you must ask yourself is will we see revenue doubling? Will we see margin expansion? Those are the kind of things that you are going to see over time,” the person said. “Stay tuned for very impressive numbers on revenue and margin expansion.”
GM’s revenue last year was about $122.5 billion.
The strategy of GM Chief Executive Mary Barra, who took over in 2014, has so far almost doubled the company’s stock price at one point from a narrow band of $33 around its 2010 initial public offering price. The shares were trading at around $53 on Friday.
Next week’s event is intended to persuade investors to value GM (with a market capitalization of about $75 billion) like Tesla ($762 billion).
More EV pickups are coming
Also on Wednesday, GM will reveal more detail about its planned EV product launch beyond the upcoming GMC Hummer pickup, EV600 delivery van and Cadillac Lyric crossover. This includes plans for electric versions of GM’s Chevrolet Silverado and GMC Sierra’s full-size pickups due in late 2022 and 2023, respectively, along with sources as well as an industry forecast provided by Autoforecast Solutions (AFS). are according to.
Sources said part of the investor day will include outlining what percentage of GM’s total vehicle sales will be EVs by 2030. The automaker set a target in January to sell all new light vehicles with zero tailpipe emissions by 2035.
When it comes to software, GM will discuss what its offerings allow it to do economically and how it will make the Detroit company’s business less cyclical than auto companies historically, sources said. said.
Last week, GM discussed the introduction of branding for its software platform, Altifi—in 2023—and an App Store-like approach to make the platform open to developers.
Software-oriented products and services are important for GM and other automakers to maintain profit margins during the transition to connected and electric vehicles, but it will force companies to build out the skills and workforce they’ve had in the past. There was a shortage.
GM will also explain how it will leverage its Altium Battery partnership with LG Energy Solutions (LGES), a unit of LG Chem, and how scaling up battery production will allow the company to cut costs, said Ken Morris, EVS. K GM vice president and AVS said in a conference call this week. “We’re really weaving together all the elements of our growth strategy,” he said.
According to the AFS, GM will launch at least 20 new electric vehicles—mostly pickups, SUVs and crossovers—in the United States, the data of which is based on planning information provided by automakers to suppliers and widely used in the industry. Is. .
More concrete details, including timing, pricing and projected quantities of future EVs, could be crucial in wooing investors as GM copes with an expensive and damaging recall of a Chevy Bolt EV for battery-related fires.
At the same time, competitors are ramping up their own EV initiatives, including Ford Motor Co.’s announcement this week of a $11.4 billion blitz with Korean battery partner SK Innovation.
While GM puts its EV lineup at the end of 2022, next year is scheduled to feature at least five more launches, including the GMC Hummer SUV, the Cadillac Celestique sedan, which is expected to sell for over $100,000, and the Chevy Blazer SUV, AFS said.
After that, GM plans to introduce another five EV models in 2024, two in 2026, two in 2027 and another in 2028, the AFS said. Future entries include all-electric versions of the Cadillac Escalade, Chevrolet Tahoe and GMC Yukon SUVs, and a new Cadillac crossover called the Symbolic.
GM intends to build many of its future EVs at five plants in North America: Orion Township and Detroit-Hamtrac in Michigan; Spring Hill, Tennessee; Ingersoll, Ontario and Ramos Arizpe in the Mexican state of Coahuila, the AFS said.
by Ben Kellman and Paul Lienert
This News Originally From – The Epoch Times