GM (General Motors) announced on October 6 that it will double its sales by 2030 and take away the market share of EVs (electric vehicles) while improving the profit margin of internal combustion engine vehicles. The EV market is currently dominated by Tesla.
The ambitious goals outlined at GM’s two-day investor event, which began on the same day, are to sell different types of EVs and software-based services, including a new version of hands-free advanced driver assistance systems. Achieved by providing technology.
The company claims that advanced driver assistance systems will work in 95% of all driving scenarios and will eventually be used on all paved roads in the United States and Canada.
The company said it aims to achieve annual sales of $ 280 billion by 2030. That figure is more than double the 2020 sales of $ 122.5 billion. According to a spokeswoman for the company, the sales target is based on a rolling average of about $ 140 billion.
The company has already announced a large investment to achieve this new goal. In November 2020, the company announced that it would invest $ 27 billion in EV development and automation technology, a 35% increase over previous plans over the next five years.
The company said it would increase the amount again in July and inject $ 35 billion by 2025.
Such investments are already being made, most notably the EV architecture and batteries for next-generation EVs. Next-generation EVs include the upcoming Chevrolet Silverado, the $ 30,000 Chevrolet crossover, the Buick crossover, the Cadillac Lyriq, and the Celestiq.
“Looking at our strong portfolio, we can see the fact that we provide affordable, truly accessible EVs for people and are working on the ecosystem they need. Many people now own only EVs and need to have a reliable charging infrastructure,” said Chairman and CEO Mary Barra at a press conference. She explained “that’s why we are confident that we can attract such customers.”
Barra also pointed out that the company is built on the loyalty that customers already have to the company. He also said that the existing capacity and dealer network along with the portfolio are advantages.
“Now that we put our foot on the accelerator pedal, we have a lot of things and we can move quickly.”
To reach its goal, by 2030, more than 50% of its plants in North America and China will be dedicated to EV production, GM said.
GM’s sales targets are not entirely dependent on EV sales and financing. At a briefing to the press on October 6, Barra and its president, Mark Reuss, said digital services through the new Ultifi software platform, as well as commercial EV delivery companies BrightDrop and OnStar Insurance. They repeatedly pointed out plans to develop new businesses such as (OnStar Insurance).
More details on such digital services and strategies will be outlined at an investor event on the 7th.
Stay tuned.