In this article CEO and CEO Mary Barra addresses investors on October 6, 2021 at the GM Tech Center in Warren, Michigan Photo by Steve Fecht for General Motors
DETROIT - General "Motors gave investors a detailed overview of its financial operations on Wednesday , describing how the automaker plans to increase its profit margins and double its revenues to around $ 280 billion by the end of this decade.
To meet these ambitious goals, the CEO from GM, Mary Barra, and her management team plan to transition from the traditional automaker to what they call a " platform company leveraging its core business of building and selling cars to expand "beyond the vehicle. "
" General Motors is delivering the technologies that redefine the way people and goods are moved, "Barra said Wednesday at GM's technology campus in suburban Detroit during the first day of a two-day investor event ". "Our commitment to a vision of a world with zero accidents, zero emissions and zero congestion has put us ahead of much of the competition.
Investors were not not immediately impressed with GM's announcements during the five-hour plus event. Shares of the automaker closed Wednesday down less than 1% at $ 53.93 per share. Shares closed up 4.7% on Thursday at $ 56.44 per share, helped by a wider market gathering.
Chief Financial Officer Paul Jacobson said he was not worried about the lack of movement in the share price. He stated that the company wanted to "clearly state its plans, some of which may have been lost by investors with the coronavirus pandemic and Global shortage of semiconductor chips.
" We're obviously putting a lot of them on the market today, and I think they 'll deal with it, but we are very, very confident, "he told reporters at a briefing. what we have here. "
Along with revenue growth, here are some other numbers investors should keep in mind as GM tries to execute its plans.
GM plans to increase itsoperating profit margin to bet between 12% "and 14% d ' here 2030 . This is up from 7.9% in 2020.
Much of the investor Wednesday's day was spent expanding the business to generate recurring revenue based on software and services.
GM is targeting revenue growth from operations such as OnStar as well as new businesses such as its majority-owned autonomous driving subsidiary Cruise and the BrightDrop electric vehicle business unit from $ 2 billion to $ 80 billion dollars by 2030.
Most of this additional new revenue is expected to occur in the second half of this decade, GM said.
GM expects revenue from electric vehicles to risehave about $ 10 billion in 2023 to about $ 90 billion a year by 2030, as the company launches new models, including at least 30 new electric vehicles by 2025.
Uppercase sp the end
The GM's annual capital spending, including investments in joint ventures to build battery factories, is expected to be between $ 9 billion and $ 10 billion over the medium term as the company grows majority in EV product portfolio.
GM has stated that it plans to fully fund these investments with internally generated funds.
As part of GM's drive for higher recurring revenue, the automaker plans to offer remote upgrades for its vehicles.
They should go from hands-free driving technologies to increase performance for things like a "0-60 acceleration software upgrade ", according to Alan Wexler, senior vice president of innovation and growth at GM.
To increase the availability of electric vehicle chargers - a major obstacle to EV ownership - GM plans to invest about $ 750 million in devices by 2025. That includes home, workplace and public charging in the United States and Canada, GM said.
Find out more GM "plans to double its annual sales by 2030 to reach $ 280 billion in digital push to be seen more like Tesla
GM-backed cruise " targets 1 million autonomous vehicles by 2030
From electric vehicles to air mobility: GM seeks to expand beyond the traditional automobile industry
Cruise CEO Dan Ammann said the fThe majority-owned autonomous driving subsidiary planned to start charging for robotaxis in autonomous vehicles in San Francisco in 2022, pending state approval.
The company obtained last week the fifth of the six permits required to "market a fleet of autonomous vehicles as is.
Cruise targets a fleet of 1 "million or more autonomous vehicles by 2030 , according to a slide presented by Ammann to investors.
"We plan to grow the business quickly," Ammann said.
Ammann hasn't specifically discussed the 2030 target, but a Cruise spokesperson has confirmed "this is where the company thinks it can be. " "
Costses EV / AV
For the first time, GM has detailed its previously announced plan to spend $ 35 billion in electric and autonomous vehicles through 2025.
Plan includes $ 20 billion in related capital and engineering to electric vehicles, $ 10 billion in battery and engine production and development, including new factories, and $ 6 billion in cruising.
GM has stated that in 2023 it will launch a new hands-free system called " "Ultra Cruise which is capable of driving in 95% of scenarios. The system is expected to perform much better than its Super Cruise system current, which is exclusively available on
At launch, GM said, Ultra Cruise swill be available on over 2 million road miles in the United States and Canada. Super Cruise is currently available on over 200,000 miles of road. The 2024 GMC Hummer EV SUV and 2022 GMC Hummer EV sport utility truck, or SUT.GM