GM "Over 1 Million Electric Vehicles to Be Produced in North America by 2025"

On the 17th (local time), Mary Barra, GM Chairwoman, and executives rang the opening bell at the New York Stock Exchange.

[Asia Economy Reporter Choi Dae-yeol] General Motors (GM) has decided to establish an annual electric vehicle production system exceeding 1 million units in the North American region by 2025.

On the 17th (local time), the company announced this mid-to-long-term plan at its Investor Day. It expects the proportion of electric vehicles in U.S. car sales to reach about 20% by 2025 and stated that GM will launch various electric vehicle models across its brands.

Mary Barra, GM Chairwoman, said, "Our electric vehicle strategy with diverse brands, vehicle classes, and price ranges will lead to increased sales and market share," adding, "Through the Ultium platform, an electric vehicle dedicated platform, and vertical integration, we will continuously improve battery performance and cost."

Additionally, GM anticipates that increasing revenue through software, as well as greenhouse gas emission credits and clean energy tax credits, will positively impact profitability. The company also revealed plans to introduce a digital sales platform with local dealers to reduce costs by about $2,000 per vehicle.

Electric vehicle production in North America will be carried out at five plants. For electric commercial vehicles such as BrightDrop, GM plans to increase annual production to 50,000 units by 2025 and expects to achieve $1 billion in sales starting next year.

Ultium Cells, the battery joint venture with LG, reported that the Michigan, Tennessee, and Ohio plants will all be operational by the end of 2024. GM also disclosed plans to build a fourth battery plant and strategies to secure battery raw materials.

Paul Jacobson, GM Chief Financial Officer, said, "We have established a foundation to rapidly expand our electric vehicle portfolio, improve profitability, and maintain high margins even during a period of large-scale investment," adding, "The Ultium platform and battery technology will continue to evolve over time, and prices will decrease."

This year, GM announced that automotive segment free cash flow is expected to increase from the initial $7 billion to $9 billion range to $10 billion to $11 billion (approximately 13.5 trillion to 14.85 trillion KRW). The pre-tax adjusted net income forecast was also specified to be around $13.5 billion to $14.5 billion, more concrete than the initial target.

Furthermore, GM expects annual sales to grow by 12% on average until 2025, with electric vehicle and software sales reaching approximately $225 billion (about 303.75 trillion KRW) by 2025. Around 2025, GM plans to achieve battery supply capacity exceeding 160GWh, reduce cell manufacturing costs, and lower the unit price to below $70 per kWh, as revealed on the same day.

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