General Motors (NYSE: GM) told investors today that it plans to double annual revenues by the end of the decade while growing EBIT-adjusted margins as it transitions to an all-electric future. GM has already announced plans to invest $35 billion through 2025 in all-electric and autonomous vehicles and launch more than 30 new EVs globally, of course
However, the success of the prediction will depend on GM smoothly transitioning from internal combustion engines, traditional blacksmithing a manufacturing, and keeping dealers and training them for what is the most significant transformation the auto industry has ever see. This is in fact how science fiction becomes science fact with GM selling more than one million EVs by 2025; 30 million connected vehicles in North America on the road by 2030. Along the way the United States and ultimately the world will turn into an environment that use technology to make things cleaner and safer.
“GM’s vision of a world with zero crashes, zero emissions and zero congestion has placed us ahead of much of the competition in electrification, software-enabled services and autonomy,” said GM Chair and CEO Mary Barra. “Our early investments in these growth trends have transformed GM from automaker to platform innovator, with customers at the center. GM will use its hardware and software platforms to innovate and improve their daily experience, leading everybody on the journey to an all-electric future.”
Highlights of an Ambitious and Moderately Detailed Plan
- GM’s desire to reach leadership in EV market share in the U.S. while increasing its profits from internal combustion engine (ICE) vehicles. GM’ said its growth derive from the Ultium modular EV platform the company developed to launch a broad portfolio of EVs using common, scalable components. The array of Ultium-powered EVs will include high-volume entries, including a Chevrolet crossover priced around $30,000, Buick crossovers, trucks from Chevrolet, GMC and HUMMER EV, as well as Cadillac EVs such as the upcoming LYRIQ and CELESTIQ. This is a $90 billion revenue increase by 2030.
- GM’s dual platform Ultium plus the so-called Ultifi strategy will expand digital services and increase the lifetime value of its vehicles. Ultifi is an end-to-end software platform “designed to unlock new vehicle experiences and connect customers’ digital lives. It will help enable the frequent and seamless delivery of software-defined features, apps and services to customers over the air.”
- GM’s global Innovation and Growth team and its mission to disrupt any market where it sees opportunity, and open new markets. GM is currently managing about 20 startups of various sizes and maturity levels, some in early phases, and others such as BrightDrop and OnStar Insurance that are launching now.
- Plans for more than 50% of the company’s North America and China manufacturing footprint to be capable of EV production by 2030.
- The five-year pull ahead to 2025 of GM’s commitment to source 100% renewable energy for the company’s U.S. facilities.
- Chevrolet teased one of several Ultium-based EVs it is planning – the Silverado EV pickup, which will make its global debut on Jan. 5, 2022.
In addition, GM shared the first details of Ultra Cruise, clearly a significant next step AutoInformed thinks in hands-free advanced driving-assistance technology. It will go on sale starting in 2023. Designed to manage 95% of all driving scenarios on every paved road in the U.S. and Canada over time, “it will create a virtually door-to-door hands-free driving experience. Ultra Cruise is being developed to be the premier advanced driver-assistance system on the market in terms of both capability and safe operation,” GM said.