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Here’s how GM lays out its future plans:

GM Chair and CEO Mary Barra speaks to investors on October 6, 2021 at the GM Tech Center in Warren, Michigan.

Photo by Steve Fect of General Motors

Detroit — General Motors He elaborated on Wednesday’s financial operations to investors and outlined plans for automakers to increase profit margins and double profits to about $ 280 billion by the end of the decade.

To achieve these high goals, GM CEO Mary Barra and her executive team are planning to move traditional automakers to their current state. Call it a “platform company” Leverage our core business of manufacturing and selling automobiles to expand and grow “beyond the automobile”.

“General Motors offers technology to redefine the way people and things move,” Rose said Wednesday at GM’s technology campus on the outskirts of Detroit. A two-day investor event. “Our commitment to a vision of a world with zero crashes, emissions and congestion has put us a lot ahead of the competition.”

Investors were not immediately impressed with GM’s announcement during the five-hour or longer event. The car maker’s share price fell less than 1% on Wednesday, closing at $ 53.93 per share. Thursday’s closing price rose 4.7% to $ 56.44 per share. Broader market rebound.

GM CFO Paul Jacobson said he wasn’t worried about stock price movements.He said the company wanted To clearly lay out the plan Some of them may have been lost by investors in a coronavirus pandemic Global shortage of semiconductor chips.

“We obviously put a lot on the market today, and I think they’ll handle it, but we’re very, very confident,” he told reporters during the briefing. .. “Today it didn’t come out to move stock prices, but to help people really understand the idea of ​​what we have here.”

Apart from revenue growth, here are some other numbers that investors should keep in mind as GM attempts to carry out its plans.

Profit rate

GM sets operating profit margin 12% and 14% by 2030.. This is an increase from 7.9% in 2020.

Bright drop

Many of Wednesday’s Investor Days focused on companies expanding their businesses to generate regular software-and Service-based revenue.

GM aims to grow not only profit growth in businesses such as OnStar, but also new businesses such as Cruise, a majority-owned autonomous driving subsidiary, and Bright Drop, a commercial EV unit, from $ 2 billion to $ 80 billion by 2030. It is said.

Most of that new incremental revenue is projected to be in the second half of the last decade, according to GM.

EV

GM predicts EV revenues will increase from about $ 10 billion in 2023 to about $ 90 billion annually by 2030 by launching new models, including at least 30 new electric vehicles by 2025. I am.

Capital investment

GM’s annual capital investment, including investment in a joint venture to build a battery plant, is expected to be approximately $ 9 billion to $ 10 billion in the medium term as the company moves to a majority EV product portfolio. ..

GM said it expects to fully fund these investments through internally generated funds.

speed

As part of GM’s move to achieve greater recurring revenue, automakers plan to offer remote upgrades to their vehicles.

From hands-free driving skills to performance improvements such as “0-60 acceleration software upgrades,” according to Alan Wexler, GM’s Senior Vice President of Innovation and Growth.

EV charger

To increase the availability of electric vehicle chargers, a major hurdle for EV ownership, GM plans to invest approximately $ 750 million in devices by 2025. This includes home, work and public charging throughout the United States and Canada.

Robo taxi

self-driving

Cruise is intended for the fleet Over 1 million self-driving cars by 2030According to a slide presented by Amman to investors.

“We expect our business to grow rapidly,” Amman said.

Amman hadn’t specifically discussed the 2030 goals, but a cruise spokesman confirmed that “the company believes it is possible.”

EV / AV spending

For the first time, GM detailed the previously announced spending plan. $ 35 billion for electric and self-driving cars Until 2025.

The plan includes $ 20 billion in capital and engineering related to electric vehicles, $ 10 billion in battery and motor production and development (including new plants), and $ 6 billion in cruises.

Ultra cruise

GM announced that it will release a new hands-free system in 2023. Called “Ultra Cruise” It can be driven in 95% of the scenarios. This system is expected to be much more powerful than current supercruise systems available only on pre-mapped split highways.

At launch, UltraCruise will be available on more than 2 million miles of roads in the United States and Canada, according to GM. Supercruise is currently available on over 200,000 miles of roads.

2024 GMC Hummer EV SUV and 2022 GMC Hummer EV Sport Utility Truck, or SUT.

GM

Here’s how GM lays out its future plans:

Source link Here’s how GM lays out its future plans:

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