On the 17th, General Motors held its Investor Day in New York. GM explained that it plans to expand its annual electric vehicle production in North America to over 1 million units by 2025 based on a rapidly growing electric vehicle portfolio. Additionally, it mentioned the potential to increase revenue opportunities through software and receive substantial greenhouse gas benefits and new clean energy tax incentives.

GM Chair and CEO Mary Barra stated, “GM’s ability to grow EV sales is the fruit of our investments in R&D, design, engineering, production, supply chain, and providing the best new electric vehicle experience to our customers during our transition to full electrification.”

She further added that “GM’s strategy for a diverse range of electric vehicles across different brands, segments, and price points will lead to increased sales and market share, and we will be able to continuously improve battery performance and pricing through the Ultium platform and vertical integration.”

By 2025, it is expected that electric vehicles will account for 20% of car sales in the United States, and GM plans to actively implement the following strategies over the next three years to become a leader in the EV market.

GM will supply various electric vehicles such as the Chevrolet Silverado EV, Blazer EV, Equinox EV, Cadillac Lyriq, and GMC Sierra EV in the pickup truck and SUV segments, which account for about 70% of the electric vehicle market.

They will introduce a new digital sales platform in collaboration with U.S. dealers, which will enhance the shopping and purchasing experience for electric vehicle customers and save costs of approximately $2,000 (about 2.7 million won) per vehicle.

GM’s electric commercial vehicle division, BrightDrop, has begun full production of its electric commercial vehicle Zevo 600, with plans to expand annual production to 50,000 units by 2025, targeting $1 billion in revenue in 2023 (approximately 13.5 trillion won based on an exchange rate of $1 = 1,350 won).

During the Investor Day, Paul Jacobson, GM’s Senior Vice President and Chief Financial Officer, updated the performance outlook for GM in 2022 and revealed several key performance indicators to help investors track the company’s transformation and financial performance up to 2025. The anticipated benefits from the recently passed clean energy tax incentive policy were excluded.

Paul Jacobson stated, “GM is rapidly expanding its electric vehicle portfolio, enhancing profitability, and building a foundation that allows for high margins even during significant investment periods. Our Ultium platform and battery technology will continue to evolve over time, with prices decreasing, and we now have a company-wide momentum towards achieving our revenue and profit targets in electric vehicles, Cruise, software-enabled vehicles, and new businesses such as BrightDrop over the next decade.”

GM anticipates that adjusted free cash flow in the automotive segment in 2022 will increase from the previous forecast of $7 billion to $9 billion (approximately 9.45 trillion won to 12.15 trillion won) to $10 billion to $11 billion (approximately 13.5 trillion won to 14.85 trillion won), and the adjusted pre-tax net income outlook is also expected to rise from the previous range of $13 billion to $15 billion (approximately 17.55 trillion won to 20.25 trillion won) to a range of $13.5 billion to $14.5 billion (approximately 18.23 trillion won to 19.58 trillion won).

GM’s key performance indicators for 2023-2025 are as follows. GM’s revenues are expected to grow at an average rate of 12% annually until 2025, with total revenues expected to exceed $225 billion (approximately 303.75 trillion won) driven by increases in electric vehicles and software revenues. The electric vehicle revenue is projected to surpass $50 billion (approximately 67.5 trillion won) by 2025.

From 2022 to the first half of 2024, GM plans to produce 400,000 electric vehicles in North America and secure an annual production capacity of 1 million units by 2025.

End of report by Sang-Jin Lee daedusj@autodiary.kr