General Motors to Outline Plans for Decade of Growth, Doubling of Annual Revenues by 2030 with Increased Margins
General Motors (NYSE: GM) hosted a two-day investor event on Oct. 6, 2021, highlighting its strategy to double annual revenues by 2030 while enhancing EBIT-adjusted margins. The company will invest $35 billion by 2025 in electric and autonomous vehicle technologies and aims to scale EV production across over 50% of its North American and Chinese plants by 2030. Key updates included the Ultium EV platform, new business initiatives such as Ultra Cruise, and plans for a wide range of competitive EV models. GM emphasizes its commitment to zero crashes, emissions, and congestion.
- Plans to double annual revenues by 2030.
- Investment of $35 billion in electric and autonomous vehicles by 2025.
- Over 50% of North American and Chinese plants to support EV production by 2030.
- Introduction of next-generation technologies like Ultra Cruise.
- Launch of over 30 new EV models globally.
- None.
WARREN, Mich., Oct. 6, 2021 /PRNewswire/ --
Two-day investor event will detail GM's innovative approach to growth with transparent key financial metrics, featuring:
- GM's dual platform strategy for hardware and software and how it will drive growth
- New business initiatives and technologies, including next-generation Ultra Cruise
- Plans to rapidly scale EV manufacturing, with more than 50 percent of North America and China plants capable of EV production by 2030
- Updates on Cruise and its progress on commercializing autonomous vehicles
General Motors Co. (NYSE: GM) meets with investors today and tomorrow to detail its plans to double annual revenues by the end of the decade while growing EBIT-adjusted margins as it transitions to an all-electric future. GM has already announced plans to invest
"GM's vision of a world with zero crashes, zero emissions and zero congestion has placed us ahead of much of the competition in electrification, software-enabled services and autonomy," said GM Chair and CEO Mary Barra. "Our early investments in these growth trends have transformed GM from automaker to platform innovator, with customers at the center. GM will use its hardware and software platforms to innovate and improve their daily experience, leading everybody on the journey to an all-electric future."
Today's events, including remarks and Q&A with Barra; GM President Mark Reuss; Doug Parks, executive vice president, Global Product Development, Purchasing and Supply Chain; Alan Wexler, senior vice president, Innovation and Growth; Dan Ammann, CEO of Cruise; Gerald Johnson, executive vice president, Global Manufacturing and Sustainability; and Chief Financial Officer Paul Jacobson, will be held at the iconic Design Dome at the GM Global Technical Center in Warren, Michigan.
Topics that will be discussed today include:
- GM's plan to reach leadership in EV market share in the U.S. while growing its profits from internal combustion engine (ICE) vehicles. GM's growth will be driven by the Ultium modular EV platform the company developed to launch a broad portfolio of highly desirable EVs using common, scalable components. The array of Ultium-powered EVs will include high-volume entries, including a Chevrolet crossover priced around
$30,000 , Buick crossovers, trucks from Chevrolet, GMC and HUMMER EV, as well as exquisitely crafted Cadillac EVs such as the upcoming LYRIQ and CELESTIQ.
- GM's dual platform Ultium plus Ultifi strategy to aggressively expand digital services and increase the lifetime value of its vehicles. Ultifi is an end-to-end software platform designed to unlock new vehicle experiences and connect customers' digital lives. It will help enable the frequent and seamless delivery of software-defined features, apps and services to customers over the air.
- A look inside GM's global Innovation and Growth team and its mission to disrupt any market where it sees opportunity, and open new markets. GM is managing about 20 startups of various sizes and maturity levels, some in early phases, and others such as BrightDrop and OnStar Insurance that are launching now.
- Plans for more than 50 percent of the company's North America and China manufacturing footprint to be capable of EV production by 2030.
- The five-year pull ahead to 2025 of GM's commitment to source 100 percent renewable energy for the company's U.S. facilities.
Today, Chevrolet provided a new glimpse of one of several Ultium-based EVs it is planning - the Silverado EV pickup, which will make its global debut on Jan. 5, 2022.
In addition, GM is sharing the first details of Ultra Cruise, a significant next step in hands-free advanced driving-assistance technology that will be offered starting in 2023. Designed to handle 95 percent of all driving scenarios on every paved road in the U.S. and Canada over time, it will create a virtually door-to-door hands-free driving experience. Ultra Cruise is being developed to be the premier advanced driver-assistance system on the market in terms of both capability and safe operation.
Today's presentations will be webcast here beginning at 1 p.m. EDT with remarks by Barra. Jacobson's presentation, which will include detailed revenue and EBIT-adjusted margin targets, will begin at 4:15 p.m. and slides will be available here.
Tomorrow's activities will include product and technology immersions, including ride and drive opportunities in the GMC HUMMER EV and experiences with Super Cruise, GM's advanced hands-free driving technology that is expanding to 22 different models by 2023.
Additional discussions will be led by executives, software developers and engineers driving new business ventures including BrightDrop, OnStar Insurance, Ultium Charge 360, e-commerce and subscription services.
General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.
Forward-Looking Statements
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These factors, which may be revised or supplemented in subsequent reports we file with the U.S. Securities and Exchange Commission ("SEC"), include, among others, the following: (1) our ability to deliver new products, services and customer experiences in response to increased competition and changing consumer preferences in the automotive industry; (2) our ability to timely fund and introduce new and improved vehicle models, including electric vehicles, that are able to attract a sufficient number of consumers; (3) the success of our crossovers, SUVs and full-size pickup trucks; (4) our highly competitive industry, which is characterized by excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models by our competitors; (5) our ability to deliver a broad portfolio of electric vehicles and drive increased consumer adoption; (6) the unique technological, operational, regulatory and competitive risks related to the timing and commercialization of autonomous vehicles; (7) the ongoing COVID-19 pandemic; (8) global automobile market sales volume, which can be volatile; (9) our significant business in China, which is subject to unique operational, competitive, regulatory and economic risks; (10) our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (11) the international scale and footprint of our operations, which exposes us to a variety of unique political, economic, competitive and regulatory risks, including the risk of changes in government leadership and laws (including labor, tax and other laws), political instability and economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, public health crises, including the occurrence of a contagious disease or illness, such as the COVID-19 pandemic, changes in foreign exchange rates and interest rates, economic downturns in the countries in which we operate, differing local product preferences and product requirements, changes to and compliance with U.S. and foreign countries' export controls and economic sanctions, differing labor regulations, requirements and union relationships, differing dealer and franchise regulations and relationships, and difficulties in obtaining financing in foreign countries; (12) any significant disruption, including any work stoppages, at any of our manufacturing facilities; (13) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production schedules; (14) prices of raw materials used by us and our suppliers; (15) our ability to successfully and cost-effectively restructure our operations in the U.S. and various other countries and initiate additional cost reduction actions with minimal disruption; (16) the possibility that competitors may independently develop products and services similar to ours, or that our intellectual property rights are not sufficient to prevent competitors from developing or selling those products or services; (17) our ability to manage risks related to security breaches and other disruptions to our information technology systems and networked products, including connected vehicles and in-vehicle systems; (18) our ability to comply with increasingly complex, restrictive and punitive regulations relating to our enterprise data practices, including the collection, use, sharing and security of the Personal Identifiable Information of our customers, employees, or suppliers; (19) our ability to comply with extensive laws, regulations and policies applicable to our operations and products, including those relating to fuel economy and emissions and autonomous vehicles; (20) costs and risks associated with litigation and government investigations; (21) the costs and effect on our reputation of product safety recalls and alleged defects in products and services; (22) any additional tax expense or exposure; (23) our continued ability to develop captive financing capability through GM Financial; and (24) any significant increase in our pension funding requirements. A further list and description of these risks, uncertainties and other factors can be found in our 2020 Form 10-K and our subsequent filings with the SEC.
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Non-GAAP Financial Measures: See our 2020 Form 10-K and our subsequent filings with the SEC for a description of certain non-GAAP measures referenced in this press release and related presentations made by management, including EBIT-adjusted, ROIC-adjusted and adjusted automotive free cash flow, along with a description of various uses for such measures. Our calculation of these non-GAAP measures is set forth within these reports and may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures.
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SOURCE General Motors Co.
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