GM to Catch Tesla... "Will Become the World's Largest Electric Vehicle Company"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] American automaker General Motors (GM) has set a goal to become the world's largest electric vehicle company, directly targeting Tesla. Along with this, GM also expressed its ambition to transform from a simple electric vehicle manufacturer into a software platform company.

According to the Wall Street Journal (WSJ) on the 6th (local time), at an investor event held at GM's Technology Center in Warren, Michigan, GM CEO Mary Barra presented a blueprint to become the number one electric vehicle company. However, she did not specify a concrete timeline for when GM would achieve this top position.

GM also announced a goal to more than double its annual revenue to $280 billion (approximately 335 trillion KRW) by 2030. Before the COVID-19 pandemic, GM recorded an average annual revenue of $140 billion.

To achieve this, GM plans to lead electric vehicle sales by launching models ranging from the Chevrolet crossover sport utility vehicle (SUV) electric car priced around $30,000 (approximately 35.69 million KRW), to the new Buick electric vehicle, and the ultra-luxury electric sedan Cadillac Celestiq.

▲Mary Barra, GM Chief Executive Officer (CEO) [Image source=Reuters Yonhap News]

Additionally, GM announced that by 2030, it will equip more than 50% of its factories in North America and China with electric vehicle production capabilities. Currently, only two of GM's North American plants can produce electric vehicles. To this end, GM declared it will convert at least three more plants into electric vehicle assembly plants by 2023 as a priority.

Furthermore, GM plans to drive revenue growth through new business expansions such as autonomous driving subscription services. GM announced that it will launch ‘Ultra Cruise,’ the next version of its existing semi-autonomous driving system ‘Super Cruise,’ in 2023, enabling drivers to take their hands off the steering wheel for 95% of driving situations. This service will be available on 3.2 million kilometers of roads in the United States and Canada, including urban, suburban, and rural roads. Both Ultra Cruise and the existing Super Cruise will be offered as paid subscription services.

The WSJ commented, "It is unusual for an automaker to declare such long-term financial goals," and evaluated this as "the company's effort to persuade investors to view it as a technology-oriented business rather than a manufacturing company."

GM CEO Mary Barra emphasized, "We have many growth opportunities," and urged, "Please think of our vehicles not simply as electric cars but as software platforms."

This content was produced with the assistance of AI translation services.