GM wants to double revenues and roll out new driver assistance system
(New York) General Motors on Wednesday unveiled an ambitious goal: to double its annual revenue by 2030 not only by selling many more electric vehicles, but also by offering new services and software, including an advanced system of driving assistance.
The number one automobile in the United States seeks to convince investors that GM, valued at $ 78 billion on the stock market, can be considered a company of the future just like Tesla, valued ten times more on Wall Street.
The group, which has generated an average turnover of 140 billion dollars over the past five years, has already announced that it wants to devote 35 billion dollars by 2025 to electric and autonomous vehicles with the aim of offering 30 models by that date. not transmitting programs.
More than half of the group’s factories in North America and China are expected to be able to produce electric vehicles by 2030, GM said Wednesday at the opening of two days of investor presentations. The group aims to produce only emission-free cars by 2035.
The venerable builder has strengths to assert, assured his boss Mary Barra: a skilled workforce, buildings already built, an established dealer network.
“When we step on the gas pedal, we can really move pretty quickly,” she said in a briefing with the press.
Thanks to its existing capacities, the manufacturer will in particular be able to offer electric vehicles “really affordable”, assured Mr.me Barra.
GM plans to offer, at an undetermined date, a Chevrolet SUV at around $ 30,000.
Convince customers
To generate additional income, the group is also counting on the development of its Ultifi platform, which offers various services and software often available on subscription.
It will soon be enhanced with an improved version of its Super Cruise driver assistance system, which currently allows owners of certain Cadillacs to drive on the highway without their hands on the wheel, but always under surveillance.
Called Ultra Cruise, the new solution should ultimately allow the car to maneuver 95% of the time, including in town. The driver may only have to get behind the wheel in construction areas or at complex intersections, for example.
GM plans to offer Ultra Cruise from 2023 on high-end models, as they are released. The solution currently available on Cadillac, Super Cruise, would, at the same time, be extended to more standard vehicles.
The Detroit group is thus positioning itself a little more in direct competition with Tesla, which already offers a driving assistance system for speed regulation and lane change on highways on all its vehicles under the name Autopilot and is working the deployment of a more complete autonomous driving system.
To double its sales by 2030, GM is also counting on “moderate growth” of its current portfolio of thermal vehicles as well as the development of financing and insurance solutions, its BrightDrop delivery service and its activities in defense.
The manufacturer is also banking on its subsidiary of autonomous vehicles Cruise, which should soon begin offering paid trips in driverless vehicles and potentially bring in $ 50 billion per year in 2030.
The group expects a total of 275 to 315 billion dollars per year in 2030 with an operating margin of 12% to 14%.
“The market remains skeptical about GM’s ability to do well against more advanced players in electric vehicles” such as Tesla or young shoots solely dedicated to this sector, noted Dan Ives, analyst at Wedbush Securities.
Especially since the company suffers particularly from the current shortage of semiconductors and must manage a recall on its only electric model currently available in North America, the Chevrolet Bolt, due to faults in the batteries that could lead to fires.
But, says Mr. Ives, the new targets are “achievable” if GM is successful in convincing its customers to prioritize electrics.
