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GM says it will double annual revenue by 2030 to $280 billion in digital push to be seen more like Tesla

Mary Barra, GM Chair and CEO, speaks with reporters on Oct. 6, 2021 in advance of investors presentations at the design and technology campus located near Detroit.

Michael Wayland/CNBC

DETROIT – General MotorsIt plans to increase its annual revenues to $280 billion in the next decade, as it switches to electric vehicles and diversifies beyond its car and truck sales.

On Wednesday, the automaker unveiled a new revenue target and projected operating profit margins between 12%-14%. Investor presentations will follow in which details about the company’s operations will be presented. plans to hit those targetsThrough traditional auto operations as well as new data- and software-focused businesses.

A company spokesperson said that the revenue target is calculated on an annual average of $140 billion per year for the automaker over recent years. GM revenue last yearNearly $122.5 billion was lost in 2019, down 10.8% from 2019. This decrease is due to the factory closures during the outbreak of coronavirus. The 2020 operating profit margin of the company was 7.9%.

“When we look back at all the investments made over the past five years, that’s how positions us to be in execution mode,” Mary Barra (GM CEO) told reporters ahead of the event. He added, “We are confident in our ability grow revenue.”

Two-day investor meetings are expected to present a clear strategy to persuade investors that the company is more valued as a start-up technology startup. TeslaThe company is worth more than $750billion, compared to $79billion for GM.

Barra stated that GM anticipates that a large portion of its revenue growth will come from new, service-based businesses. However, GM also expects moderate growth from traditional vehicle and operation sales.

She said that EVs were plus volume in the beginning days. “There is tremendous opportunity for growth from the EV perspective to the subscription and the services.”

Barra did not disclose any specific breakdown but stated that investors will be notified later.

GM has also announced plans to accelerate its production of electric vehicles, and more than half of North America’s plants are capable of making them. Although only two GM plants are currently capable of making electric vehicles in North America, it announced that plans to make the transition. at least three others by 2023.

Automaker Volvo is currently in process investing $35 billionIt plans to become exclusively an electric automaker in 2035, and will continue producing autonomous vehicles as well as electric cars through 2025.

GM will also be presenting details about the process and its plans for commercializing driver-assist technology and autonomous cars at this event.

Wednesday, GM announced that its new products will be unveiled electric Silverado at CESIt was launched in January. A Chevrolet crossover, priced at around $30,000 was also mentioned. GM has not yet released information on the sale dates of these vehicles.

Mark Reuss, President of GM told reporters Wednesday that no one will be able “to touch” us in the space for battery-electric trucks. You’ll see we are on the right track with those.

GM will soon release a new hand-free technology that can be used to drive autonomously in 95% if the self-driving tech is successful. called “Ultra Cruise”In 2023. This system should be capable of far greater capabilities than the current Super Cruise system. It can only operate on pre-mapped separated highways.

GM announced that Ultra Cruise was available for more than 2,000,000 miles in North America and Canada. Super CruiseIt is available for more than 250,000 miles.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.