GM will outline an ambitious plan to double company revenues in the next decade. Here’s how.
General Motors secured its pivot to a high-tech future Wednesday by announcing plans to convert more assembly plants in North America to make electric vehicles by the end of the decade and to double company revenues by that time as it unveils more software and new EVs. GM leaders are also expected to reveal new technology, such as an advancement to the automaker’s hands-free driving system, as well as more EV products, including a new Chevrolet SUV EV priced at $30,000, during its annual Investor Day presentation, starting at 1 p.m. ET. «Our early investments in these growth trends have transformed GM from automaker to platform innovator, with customers at the center,» said CEO Mary Barra. «GM will use its hardware and software platforms to innovate and improve their daily experience, leading everybody on the journey to an all-electric future.» Barra emphasized that no hourly workers will lose their jobs in the transition to electric and GM continues to hire salaried employees who have a background in technology and digital software. «Late last year we hired 3,000 employees and this year alone we’ve hired 8,000 salaried workers especially in the technology, digital and the software space,» Barra said. «When we talked about getting to carbon neutral by 2040, people said, ‘I want to be a part of that’ and we saw the number of applications go up.» About 100 investors are expected to attend GM’s Investor Day at GM’s Global Technical Center in Warren. On Thursday, investors will be at GM’s Milford Proving Grounds to see new products and technologies including taking a spin in the 2022 GMC Hummer EV pickup, and seeing the new BrightDrop all-electric delivery vans. GM is expected to outline for investors detailed plans to double annual revenues by 2030 and grow earnings before interest and taxation (EBIT) adjusted margins as it transitions to an all-electric future. Barra said much of that revenue growth will come from GM’s new businesses such as its upcoming EVs, start-up BrightDrop electric delivery trucks and OnStar Insurance, as well as future software that would open up revenue streams through subscriptions. To get a sense of how much revenue GM is looking to capture, the company reported revenue of $122.5 billion for 2020. That was down 10.8% compared with 2019 after GM shut down all its factories in North America last year for eight weeks at the height of the COVID-19 pandemic. Still, GM reported $6.4 billion in net income for 2020 while its adjusted operating profit was $9.7 billion. GM has been in the process of transforming to a technology innovator, promising to invest $35 billion in electric and autonomous vehicles by mid-decade.
