General Motors expects its growing portfolio of electric vehicles will be solidly profitable in 2025 in North America as the company scales EV capacity in the region to more than 1 million units annually.
The company also told investors at a meeting in New York City that the company will move aggressively towards EV leadership as EV adoption approaches 20% of US sales in 2025.
“GM’s ability to grow EV sales is the payoff for many years of investment in R&D, design, engineering, manufacturing, our supply chain and a new EV customer experience that is designed to be the best in the industry,” said GM Chair and CEO Mary Barra. “Our multi-brand, multi-segment, multi price point EV strategy gives us incredible leverage to grow revenue and market share, and we believe our Ultium Platform and vertical integration will allow us to continuously improve battery performance and costs.”
GM outlined plans for the next three years:
- GM will have multiple entries in pickup, SUV and luxury segments that represent about 70% of EV industry volume, including the Chevrolet Silverado EV, Blazer EV and Equinox EV, the Cadillac LYRIQ and the GMC Sierra EV
- GM is launching a new digital retail platform with its U.S. dealer partners to enhance the shopping and purchase experience for EV customers and reduce costs to GM by an estimated $2,000 per vehicle
- Five GM assembly plants in the U.S., Canada and Mexico will be building EVS
- BrightDrop — GM’s tech startup creating EVs, eCarts and software — is on track to reach $1 billion in revenue in 2023, as GM’s CAMi plant in Ontario launches full production of the BrightDrop Zevo 600 delivery van next year, and scaling to a projected 50,000 units annually by 2025
- GM’s battery cell joint venture Ultium Cells will be operating plants in Ohio, Tennessee and Michigan by the end of 2024, making the company a leader in domestic cell production; a fourth U.S. cell plant is planned
- GM has secured binding commitments for all the battery raw material it needs to deliver its 2025 capacity target
- The company continues to secure its needs beyond 2025 with strategic supply agreements and direct investments in natural resource recovery, processing and recycling
In 2023, there’s a new 2024 Chevrolet Silverado HD and GMC Sierra HD, which will be available in the first half of 2023, as well as the new Chevrolet Colorado and GMC Canyon mid-size pickups.
During the meeting with investors, Paul Jacobson, GM executive vice president and chief financial officer, updated the company’s 2022 guidance and provided several key performance indicators to help investors track the company’s transformation and financial performance through 2025, all of which exclude the positive benefits from the recently passed clean energy tax credits.
“We’ve built the foundation to rapidly scale our EV portfolio, make it profitable and maintain strong margins during a period of high investment,” said Jacobson. “Our Ultium Platform and battery technology will only get better and less expensive over time, and we have enterprise-wide momentum in EVs, Cruise, software-defined vehicles and new businesses like BrightDrop that will help us achieve our revenue and margin targets by the end of the decade.”
GM now projects full-year 2022 adjusted automotive free cash flow will increase to $10-11 billion from its previous guidance of $7-9 billion. GM now projects 2022 EBIT-adjusted for the full year will be in a range of $13.5-14.5 billion, compared to its previous guidance of $13-15 billion.