A few days ago, General Motors held an investor conference in New York and announced that it will achieve profitability in the electric vehicle business in North America by 2025. Regarding the layout of electrification and intelligence in the Chinese market, it will be announced on the Science and Technology Outlook Day held on November 22.
With the accelerated implementation of the company’s electrification strategy, General Motors has shown a strong growth trend in the field of electric vehicles. Its annual production capacity of electric vehicles in North America is planned to exceed 1 million vehicles in 2025.
General Motors announced a series of latest developments and achievements in the field of electrification at the investor conference. In terms of electric models, it fully injects electric power into pickup trucks, SUVs and luxury car segments. The product lineup covers Chevrolet Silverado EV, Trailblazer EV and Explorer EV, Cadillac LYRIQ and GMC SIERRA EV.
In the field of power batteries, the three factories of Ultium Cells, a battery joint venture under General Motors, located in Ohio, Tennessee and Michigan, will be put into operation by the end of 2024, helping the company become a leading company in battery manufacturing in the United States; currently planning to build a fourth factory .
In terms of new businesses, BrightDrop, a pure electric commercial and software start-up technology company owned by General Motors, is expected to reach US$1 billion in revenue in 2023. The CAMI plant in Ontario, Canada will start full production of BrightDrop Zevo 600 pure electric light commercial vehicles next year, and the annual production capacity is expected to reach 50,000 units in 2025.
Regarding the supply of battery raw materials, in order to ensure the demand for electric vehicle production capacity, GM has now reached a binding procurement agreement on all battery production raw materials required for the production target of electric vehicles in 2025, and will continue to pass strategic supply agreements and increase investment protection for recycling capacity needs.
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In terms of building a new sales network platform, GM and US dealers have jointly launched a new digital retail platform, bringing an unusual customer experience to new and old electric vehicle users, and reducing the company’s single-vehicle cost by approximately US$2,000.
In addition, GM simultaneously raised its financial targets for 2022 and shared several key performance indicators at the investor conference.
First, GM expects adjusted full-year 2022 auto business free cash flow to increase to a range of $10 billion to $11 billion from the previous range of $7 billion to $9 billion; adjusted full-year 2022 earnings before interest and taxes will be Adjusted from the previous range of 13 billion to 15 billion US dollars to 13.5 billion to 14.5 billion US dollars.
Second, based on the growth of electric vehicle sales and software service revenue, by the end of 2025, GM’s annual net income is expected to exceed US$225 billion, with a compound annual growth rate of 12%. It is estimated that by 2025, the revenue of the electric vehicle business will exceed 50 billion US dollars.
Third, GM is committed to reducing the cell cost of the next generation of Altronic batteries to below $70/kWh in the middle and late 2020-2030s.
Fourth, benefiting from continued solid cash flow, total annual capital expenditures are expected to be $11 billion to $13 billion by 2025.
Fifth, GM expects that in the current stage of high investment, the adjusted EBIT margin in North America will remain at a historically high level of 8% to 10%.
Sixth, by 2025, the adjusted EBIT margin of the company’s electric vehicle business will be in the low to mid-single digits.
Post time: Nov-21-2022