News | Updates | Showbiz

G.M. hopes to double its revenue by selling electric cars, software and services.


WARREN, Mich. — General Motors has been spending billions of dollars in the last few years to electrify its cars and trucks.

Now the company, which has said it aims to stop selling gasoline-powered vehicles by 2035, is beginning to reveal how big it expects this bet will pay off.

The automaker said on Wednesday it aims to roughly double its annual revenue by 2030, to about $280 billion. It is counting on new electric trucks and cars to drive much of the growth while adding new revenue streams from software and services.

“When you look at all the investments we have been making for five years plus, that’s what positions us really be in execution mode,” G.M.’s chief executive, Mary Barra, told reporters at the automaker’s sprawling technical center north of Detroit.

While it expects modest growth in sales of gasoline-powered vehicles, electric cars present “a tremendous growth opportunity,” she said. At the same time, G.M. hopes to develop ride-hailing services that use autonomous cars, create insurance products and expand its defense contracting work.

“That will really allow us to get that doubling effect in revenue,” Ms. Barra said.

G.M. expects to make more money from those efforts because software and services typically have higher profit margins than making and selling cars.

In a day-long presentation to investors and the media, G.M. also provided a glimpse at one of the electric vehicles it is working on — an electric version of its popular Chevrolet Silverado pickup truck. G.M. said the truck will feature a glass roof and will be capable of steering with all four of its wheels, not just the front two. Executives would not say when it will go into production.

The electric Silverado will be built at the G.M.’s Hamtramck plant in Detroit, alongside a GMC Hummer electric sport-utility vehicle that the company plans to begin selling by the end of this year. G.M. also plans to add the Cadillac Lyriq, an electric S.U.V., next year.

G.M. hopes to offer a new version of its Super Cruise driver-assist system that will allow hands-free driving on local streets and roads. Called Ultra Cruise, the new version is supposed to be released in 2023 for use on two million miles of roads in the United States and Canada. Super Cruise currently only works on about 200,000 miles of major highways.



Source link

Comments are closed, but trackbacks and pingbacks are open.