GM’s ambitious agenda to show investors it can out-Tesla Tesla

October 6, 2021

(Reuters) -General Motors Co laid out an ambitious agenda on Wednesday aimed at convincing investors it is refashioning itself into a more profitable, software-driven company that will challenge Tesla for electric vehicle leadership by 2030.

Among the initiatives, GM:

* Outlined a new “dual platform” strategy for Ultium-branded electric vehicle components and batteries and Ultifi-branded software and services, saying the Detroit automaker will double annual revenue to $280 billion by 2030, with increased margins in the 12-14% range.

* Said software-driven services will contribute $20 billion-$25 billion in new revenue by 2030.

* Said it expects EV revenue to grow to $90 billion annually by 2030.

* Expects revenue from the BrightDrop commercial EV unit to top $10 billion by 2030 with low 20% margins.

* Plans to be U.S. EV market leader, “while growing its profits from internal combustion engine vehicles.”

* Said future EV entries will include a $30,000 Chevrolet crossover, a Blazer EV, Buick crossovers, full-size trucks from Chevrolet, GMC and Hummer, and several Cadillac models.

* Said more than 50% of its North American and Chinese plants will be “capable” of building electric vehicles by 2030.

* Expects EV profit margins to match those of conventional combustion-engine vehicles by 2030.

* Plans to unveil its new Chevrolet Silverado electric pickup in January at the annual Consumer Electronics Show, and will offer both retail and fleet versions, with a range of more than 400 miles (645 km) between charges.

* Plans to announce new electric truck assembly plant, as rival Ford did in September.

* Expects to introduce next-generation pickup trucks in 2025 with new combustion engines with lower CO2 emissions.

* Described Ultifi as an “end-to-end software platform” that will “increase the lifetime value” of its vehicles by enabling a range of digital services and features delivered and updated wirelessly to those vehicles.

* Revealed Ultra Cruise as “a significant next step” in hands-free driving — to be offered via subscription on premium models starting with Cadillac in 2023, while Super Cruise will be more widely available on mainstream models.

* Said GM’s majority-owned Cruise self-driving unit expects to begin offering fully driverless rides to passengers shortly, then “rapidly scale” commercial operations starting in 2023.

* Said Cruise hitting $50 billion in annual revenue within six years is achievable.

* Said GM plans to double its battery making capacity to 140 gigawatt hours annually with the addition of two new plants.

(Reporting by Paul Lienert and Ben Klayman in Detroit, Editing by Nick Zieminski and Richard Pullin)

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