DETROIT – General Motors plans to double its annual sales to $ 280 billion by the end of this decade as the company migrates to all-electric vehicles and diversifies beyond auto and truck sales.
The automaker announced on Wednesday ahead of investor presentations detailing how the company will operate plans to achieve these goals through traditional automotive businesses and new software and data-driven businesses.
The revenue target is based on a moving average of about $ 140 billion for the automaker over the past few years, a company spokesman said. GMs Sales last year was nearly $ 122.5 billion, down 10.8% from 2019, largely due to factory closures at the start of the coronavirus pandemic. The operating profit margin in 2020 was 7.9%.
“If you look at all of the investments we’ve made in over five years, we’re really in execution mode today,” GM CEO and Chairman Mary Barra told reporters during a pre-event briefing. “We have great confidence in our ability to increase sales.”
The two-day investor meeting including product test drives on Thursday is intended to provide a “clear strategy” to convince investors to like the company more like a technology start-up Tesla, which is valued at more than $ 750 billion compared to $ 79 billion for GM.
Barra said GM expects much of the sales growth to come from its new and service-based businesses, with “moderate growth” from its traditional vehicles and operations.
“We are seeing a surge in EVs especially in the first few days, so we see tremendous opportunities to grow from an EV perspective and then subscriptions and services,” she said.
The automaker expects its traditional auto sales and financing business to grow from $ 138 billion to $ 195 billion to $ 235 billion a year. Its new businesses such as the autonomous vehicle subsidiary Cruise and BrightDrop commercial EV business is expected to grow from $ 2 billion, mostly from OnStar, to $ 80 billion over this period.
GM also confirmed plans to rapidly scale its electric vehicle manufacturing, with more than 50% of its plants in North America and China able to produce the vehicles. Currently, only two GM plants in North America are capable of producing electric vehicles, but the company has announced plans to convert at least three more by 2023.
GM President Mark Reuss told investors on Wednesday that the company would soon announce a second battery-electric truck assembly plant. The company’s first EV pickups, including the upcoming ones GMC lobster, is produced in a facility in Detroit.
The automaker is about to Invest 35 billion dollars in electric and autonomous vehicles by 2025, as the company aims to become a fully electric automaker by 2035.
GM said it plans to outperform Tesla as the U.S. leader in electric vehicles, but Barra and Reuss declined to give a timeframe. The company has announced that it will sell 1 million electric vehicles per year worldwide through 2025.
During the event, GM is also expected to explain in more detail this transition as well as the planned commercialization of driver assistance systems and autonomous vehicles.
GM confirmed on Wednesday that it will introduce its new one electric Silverado at CES in January. It is also said that a Chevrolet crossover is in the works for around $ 30,000. GM did not announce any sales dates for the vehicles.
“Nobody will be able to touch us in the battery-electric truck room,” Reuss told reporters on Wednesday. “You will see that we hit the mark with that.”
Regarding self-driving technology, GM said it will launch a new hands-free system in 2023 called “ultra-cruise” that is roadworthy in 95% of the scenarios. The system is expected to be far more powerful than its current Super Cruise system, which is only available on pre-mapped shared highways.
At launch, according to GM, Ultra Cruise will be available on more than 2 million kilometers of road in the US and Canada. Great cruise is currently available on more than 200,000 kilometers of road.
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