AutoBeta(AutoBeta.net)10/07 Report--

GM CEO Mary Barra said at an investor briefing on Oct. 6 that the company plans to double its revenue by 2030, and to achieve that goal, GM said its products are transitioning to pure electric vehicles and will build a more diversified business, not limited to selling passenger and commercial vehicles. In addition, General Motors said that if the goals are met, it will have annual revenue of about $280 billion (1.8 trillion yuan) by 2030 and is expected to overtake Tesla to become the leader in electric vehicle sales in the United States, Reuters reported.

GM said the revenue target was based on its rolling average of $140 billion in recent years. GM's revenue last year was about $122.5 billion, down 10.8% from 2019, when its operating margin was 7.9% in 2020. The main reason is due to the initial factory shutdown caused by the epidemic of COVID-19. For its part, GM expects its traditional car sales and financing business to grow from $138 billion to $195 billion to $235 billion a year. During this period, new businesses such as its self-driving car subsidiaries Cruise and BrightDrop's commercial electric vehicle business aim to grow from $2 billion to $80 billion.

Notably, GM signalled its plans to increase the production of electric vehicles, saying it would soon announce a second battery electric truck assembly plant. The company's first electric pickups, including the upcoming GMC Hummer, will be produced at a Detroit factory. Spending on electric and self-driving cars will increase to $35 billion by 2025, and 1 million electric vehicles are expected to be sold worldwide each year. The goal is to become an all-electric car manufacturer by 2035. Bai Li, president of GM China, said in an interview with the media that the Hummer is not only an iconic product, but also represents the flexibility and advanced nature of GM's new generation of electrified platform. The platform takes Ultium battery system as the core, and the products can cover many market segments, such as cars, SUV, pickups and so on. On September 14, GM officially launched the Ultium electric vehicle platform to the Chinese market. It is understood that the Ultium electric vehicle platform is a secret weapon for GM's electrification transformation. According to reports, the platform has highly modular features and can cover a wide range of market segments across multiple brands. Almost all GM's electric vehicles can be built based on this platform.

The realization of electrification has undoubtedly become an "inflection point" for the automobile industry. Bai Li, president of GM China, has said that new energy models will account for more than 40% of all new models launched by GM in China in the next five years. Wang Yongqing, general manager of SAIC GM, also said: between 2020 and 2025, SAIC GM will launch nine new energy models, covering three major brands, new energy technology spectrum and mainstream body forms. Daniel Ives, an analyst at Wedbush, believes that the development of electric vehicles has enabled GM to focus on new energy areas and propose new strategic priorities, while also putting it among other types of carmakers. In addition, it will be a "potential gold mine" in terms of self-driving / auxiliary driving. This sector is likely to generate between $20 billion and $30 billion in revenue for the company over the next five to seven years. However, based on the current market capitalization of Tesla, it has exceeded $774.9 billion, while GM's market capitalization is only $78.3 billion. It may not be easy to surpass Tesla in a short time.

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