CEO Mary Barra used the pledge to kick off the company’s Investor Day event in New York on Thursday.
Profit figures include vehicle sales revenue, emissions Tax credits and income from the sale of software and components, she said.
Barra said the company’s EV portfolio appeals to a wider customer base than its competitors.
Detroit automakers have a goal of selling only electric passenger cars by 2035.
GM is sticking to Barra’s promise to sell more EVs in the U.S. than market leader Tesla by mid-2010.
“Our commitment is to lead the industry,” Chief Financial Officer Paul Jacobson told reporters at an investor day event. We believe that if we have a vehicle that does it, we can get there.”
a more realistic view
Profit projections for electric vehicles appeared to be a step back from earlier predictions that the new generation of GM EVs would be profitable from the start.
But GM said its previous forecasts for near-term profitability did not include the capital costs of switching to new technology. 2025 earnings projections are on a pre-tax basis including the cost of capital. Construction of a battery factory Convert internal combustion engines to electric vehicles.
Jacobson said it will take time for individual electric vehicles to reach “low to mid-single-digit” profit margins in 2025 as costs are spread across more vehicles. “When you look at the individual (vehicle) programs, there is probably better performance than what you look at as a whole,” he said.
Jacobson says EVs will be even more profitable once the Clean Energy Tax Credit under the Federal Inflation Reduction Act applies.
Despite economic volatility and the possibility of a recession, GM looks a little more confident about its earnings this year, forecasting full-year pretax earnings of $13.5 billion to $14.5 billion on Thursday. said that This is in the range of He’s $13 billion to He’s $15 billion, which is our previous guidance. The forecast for free cash flow, the cash remaining after deducting operating expenses and capital charges, is $7 billion to $9 billion to $10 billion to $11 billion annually.
GM also said that bright drop commercial vehicle The unit that makes electric vans and carts will bring in more than $1 billion in revenue next year.
GM shares rose slightly on Thursday as the broader market fell.
“This will once again set the world standard for performance,” he said.
Summary of new features
Royce gave us a glimpse of other new or improved GM vehicles coming in the next two years. He said the new internal combustion engine could build on the existing foundation with significant upgrades while reducing costs.
As for electric vehicles, GM will bring back the Buick Electra name for a new SUV next year. The SUV will be sold first in China and then in the United States. Then comes Cruise Origin, a multi-passenger vehicle built for the company’s ride-hailing service. A compact SUV from Cadillac.
Among the 2024 EVs are the GMC Sierra full-size pickup, full-size Cadillac SUV, and full-size Buick and Chevrolet. Electric car Mainly for China.
Online purchase (savings sent to GM)
Reuss also said GM is revamping the way customers buy electric vehicles, offering the option to buy them entirely online or in store. dealer The company saves $2,000 per vehicle.
than that dealer We have a large inventory, so we own fewer vehicles. When a customer orders an EV, it will be delivered from his three distribution centers on the US coast. Two centers in California and one in Georgia stock a mix of popular equipment and can deliver in as little as four days, Reuss said.
The system automates a lot of fundraising, insurance cost.
“This represents $2,000 per vehicle in efficiency and cost savings for GM,” he said, adding that the savings would go to GM.
Royce also attacked Tesla, the leader in electric vehicle sales in the United States, telling analysts that more than 11,000 Tesla owners have their vehicles serviced at GM dealerships. He said the dealer network is a big competitive advantage for the service.
https://www.autoblog.com/2022/11/17/gm-investor-day-mary-barra-electric-cars-profitable-by-20255/ GM CEO Mary Barra says electric cars will be profitable by 2025