Executives at General Motors Co. told investors Thursday at a presentation in New York that the automaker’s electric vehicle portfolio will be successful through 2025, above some expectations.
To get there, the Detroit-based automaker will want to run vehicle launches, build a battery source and ramp up EV production as the country faces economic uncertainty toward 2023. Still, GM expects its electric vehicle business to get what it called fuel-efficient. to medium-sized monostable. Quantify margins adjusted to the net source of revenue before the new federal tax credits, which would rise five to seven percentage points, the automaker said.
The auto industry has been spared economic headwinds that have been accompanied by high inflation and emerging interest rates, as automakers still had little source of broker masses and demand began to decline recently.
GM on Thursday updated its projections for this year’s pretax profit between $13. 5 billion and $14. 5 billion, a slight replacement from the previous forecast of $13 billion to $15 billion. The automaker now expects its adjusted automotive loose money by 2022 to rise to $10 billion to $11 billion from its previous forecast of $7 billion to $9 billion.
“Don’t bet against this company,” GM Chairman Mark Reuss told investors at the end of his presentation.
“We’re in a position for that because we’ve done all the heavy lifting. It’s time to turn on the faucet and let it run,” he said. “We have the experience and the talented, hard-working team to make it happen. . . We are here to win and no one is more prepared or placed to do so. “
On Thursday, GM executives touted the features of the company’s Ultium platform for electric vehicles, which is flexible for use in a variety of vehicles. Unlike other automakers, GM is interested in hybrids and instead of installing a battery in an internal combustion engine architecture, the automaker evolved the specialized battery platform.
“I can say with certainty that we would never have been able to expand so many exceptional and exclusive products if they were all hybrid programs or ICE modernizations,” GM CEO Mary Barra told investors. “The complexity and cost would have made it unfeasible. But that’s what makes Ultium special: the usual set of batteries and parts and a unique flexible platform. We can temporarily scale and load effectively to succeed over a million annual capacity sets in North America through 2025, and then it’s going to boost from there.
However, GM’s positive news about its current and long-term outlook didn’t seem to move investors, as its inventory rose just 17 cents to $38. 64 after markets closed on Thursday.
According to Dan Ives, senior equity analyst at the wealth control firm, GM’s 2025 electric vehicle profitability forecast is higher than Wedbush Securities’ forecast for 2027.
“Given supply chain issues and global macroeconomics, GM may have been more cautious about targets, battery production and the overall call for years to come. Instead, Bar
Crosstown rival Ford Motor Co. has not said when it expects its electric cars to be profitable. and 2 million games a year until the end of 2026. It targets a company-wide adjusted operating profit margin of 10% through 2026.
Stellantis NV forecast a charging parity between electric cars and their opposite numbers of internal combustion engines by 2026. The company plans to spend $35. 5 billion on electrification and software through 2025 and an adjusted operating margin of 12% with annual net revenue doubling to $335 billion through 2030, when it says all sales in Europe and more than a portion in North America will be all-electric.
GM, which is making a $35 billion investment in electric vehicles and self-driving cars through 2025, now expects its profits to grow at a compound annual rate of 12% through 2025, reaching more than $225 billion as EV volumes and software gains grow. It is estimated at $50 billion by 2025.
“GM’s strategy to achieve electric vehicle profitability is well-prepared and comprehensive. As the company also noted, if it manages to achieve those goals, we will decide through the quality of its execution and whether the customer interest metrics we see continue. “grow, as largely expected,” said Stephanie Brinley, principal analyst at S.
Thursday’s expectations are based on what GM told investors on Investor Day last year, when the automaker said it plans to earn $90 billion in EVs in cash through 2030. He also said electric cars and technology-focused corporations will increase their profit margins to 12%. -14% and double cash inflows to around $280 billion by 2030.
The Detroit-based automaker recently scaled back its plan to build 400,000 electric cars in North America by the end of next year in the early part of 2024. GM has just increased its electric vehicle capacity in North America to 1 million cars consistent with the year. until 2025.
The expansion of electric vehicle production will be based on the start of production at GM’s planned mobile battery production plants. GM and its spouse LG Energy Solution, through their joint venture Ultium Cells LLC, are building four mobile battery plants in the United States. Currently, only one in Northeast Ohio has started generating mobile. The automaker plans to succeed in a U. S. mobile battery capability. UU. de more than 160 gigawatt hours and 1. 2 million mobiles a day until 2025 with 3 of the 4 US battery plants in the US being able to do so. U. S. Finale 2024.
Ultium is a site in New Carlisle, Indiana, for the location of its fourth battery plant in the United States, but the resolution to invest there has not yet been finalized.
In addition to securing production of mobile batteries, GM has also secured commitments for the unfired battery needed to meet its 2025 capacity target.
To meet its electric vehicle profitability projections, GM aims to reduce mobile prices for its next-generation Ultium batteries to less than $70 per kilowatt hour through the mid to late decade, up to the projected 2025 charge of $87 per kilowatt. Chief Financial Officer Paul Jacobson said.
Starting next year 2025, GM’s overall capital expenditure is expected to be $11 billion to $13 billion annually. That’s more than the $9 billion to $10 billion GM is spending this year.
Next year will be a launch era for GM with Chevrolet Silverado EV, Blazer EV and Equinox EV all on the launch schedule.
GM’s BrightDrop business, which is on track to succeed at $1 billion by 2023, will begin full production of the Zevo six hundred delivery van next year at CAMI’s plant in Ontario. The electric cars announced by GM will be manufactured at North American meeting plants, adding two in Michigan: Factory Zero Detroit-Hamtramck Assembly Center and Orion Assembly in Lake Orion.
GM’s expectations on Thursday “certainly have compatibility with the narrative they’ve been talking about for a long time; whether they can do that is still a big question,” said Sam Abuelsamid, principal research analyst at Guidehouse Insights.
“We’ll have a much broader concept of whether they can achieve all the goals that have been set around this time next year. “
GM is working to prepare its network of U. S. brokers. U. S. for changes. On Thursday, executives announced “a new virtual retail platform” with those brokers “for the shopping and shopping experience for EV consumers and lower prices for GM by about $2,000 according to vehicle,” the automaker said.
Eighty percent of GM’s brokerage network is already the new virtual retail platform, Reuss told investors.
Jacobson told reporters on a call that the company is implementing a “regional distribution strategy” that will cut prices for GM and its distributors. The Detroit News reported in 2021 that GM was contemplating regional distribution centers owned or leased through GM for the Chevrolet Bolt. electric car and Bolt EUV.
GM has opened 3 “centralized electric vehicle distribution centers” to enable faster delivery times and lighter inventory, Reuss said.
“These functionality centers will be stocked with fast-moving products, enabling faster delivery times to our GM dealerships and lowering the cost of corporate inventory,” he said. “With those centers, we can deliver accurate visitor order settings in as little as 4 days. On the other hand, the same procedure will take six to eight weeks for some other OEMs. That’s why those regional distribution centers will be a huge competitive merit for us. “
khall@detroitnews. com
Twitter: @bykaleahall
Staff writers Jordyn Grzelewski and Breana Noble contributed.