GM solidified its shift to a high-tech future on Wednesday, unveiling plans to convert more North American assembly lines to build electric vehicles by the end of the decade, as well as to increase corporate revenue by that time as it introduces new software and EVs.
GM executives were anticipated to unveil new technologies, such as an update to the automaker’s hands-free driving system, as well as more electric vehicles, including a new Chevrolet SUV EV priced at $30,000, during their annual Investor Day presentation, which began at 1 p.m. EDT.
“Our early investments in these growth patterns have transformed GM from a carmaker to a platform innovator focused on customers,” stated CEO Mary Barra.
“GM will innovate and improve their daily experience using its hardware and software platforms, leading everyone on the path to an all-electric future.”
No hourly workers would lose their jobs as a result of the shift to electric, according to Barra, and GM will continue to hire salaried personnel with a background in technology and digital software.
“We hired 3,000 personnel late last year, and we’ve added 8,000 paid workers this year alone, particularly in the technology, digital, and software space,” Barra stated. “When we talked about achieving carbon neutrality by 2040, people said, ‘I want to be a part of it,’ and the number of applications increased.”
At GM’s Global Technical Center in Warren, some 100 investors were anticipated to attend the company’s Investor Day. Investors will visit GM’s Milford Proving Grounds on Thursday to view new goods and technologies, including a ride in the 2022 GMC Hummer EV pickup and a demonstration of the new BrightDrop all-electric delivery vans.
Increasing revenue by twofold
As it moves to an all-electric future, GM was anticipated to explain specific plans for investors to double annual revenues by 2030 and boost earnings before interest and taxation adjusted margins.
Much of the income increase, according to Barra, will come from GM’s new companies, such as its planned electric vehicles, startup BrightDrop electric delivery vans, and OnStar Insurance, as well as future software that will open up subscription revenue streams.
To give you an idea of how much money GM is hoping to make in 2020, the firm recorded revenue of $122.5 billion. This was down 10.8% from the previous year, when GM shut down all of its North American factories for eight weeks during the COVID-19 pandemic. GM recorded a net income of $6.4 billion in 2020, with an adjusted operating profit of $9.7 billion.
GM has been evolving into a technological leader, vowing to invest $35 billion in electrified and autonomous vehicles by the middle of the decade. By that time, GM will have released 30 new electric vehicles.
However, it can generate revenue from a variety of other tentacles. For example, Cruise, a majority-owned company, is developing a self-driving robotaxi service. As the company ramps up operations, Cruise CEO Dan Ammann is anticipated to reveal the goal for its ride-hailing business to reach $50 billion in revenue. There is no timetable for achieving that goal yet, although Cruise is anticipated to begin charging for rides next year if California regulators approve it.