General Motors is accelerating the development of electric vehicles. With the introduction of new models and increased production capacity, its short-term investment has increased substantially. The largest US automaker announced that it will increase its spending by 30% to 35 billion U.S. dollars (approximately 2 rupees, or 58,380 crores) by 2025, and plans to build two more battery factories.
Part of the funds will also be used for its self-driving car plan. The company uses the high consumer acceptance and favorable public policies of its first electric vehicle (EV) model as a confidence factor that its investment will be rewarded. “By 2025, sales of electric vehicles will exceed 1 million, and we are increasing investment to scale up faster because we see the electrification momentum in the United States is increasing, and customer demand for our product portfolio,” said CEO Mary Barra.
Our employees, customers, dealers, suppliers, unions and investors, and policymakers all firmly believe that electric vehicles and autonomous driving technologies are the keys to creating a cleaner and safer world for all. “After the rise of Tesla and the government’s policy to address climate change, a traditional automaker voted for the latest in the future of electric vehicles.
Last month, Ford introduced its all-electric F-150 pickup truck and expressed its goal is to make up 40% of its sales by 2030. These startups have reached the speed limit. Earlier this week, Lordstown Motors announced the resignation of its CEO and CFO after the conclusion of the investigation. The company’s information about car reservations is inaccurate. Production.
Coming soon: General Motors’ current fleet is still mainly composed of internal combustion engines. Chevrolet Bolt is the only EV model in the showroom, but the company has announced EV versions of many of the most popular vehicles, such as the Silverado pickup. A GM spokesperson said that the “Hummer” pickup truck restart will be launched this fall when the company will also begin accepting bookings for the Cadillac Lyriq sport utility vehicle.
Chief Financial Officer Paul Jacobson said that the increased spending is a “cautious” investment considering consumers. Passion for the models you have shown so far. The company expects to launch 30 new electric vehicles by 2025, of which about two-thirds will be listed in North America. “We must ensure that we continue to invest in battery technology and switch to high-volume electric vehicles to reduce costs,” he said.
Since the November election November, GM has adopted self-championship electric vehicles as part of its strategy to mitigate climate change in the Joe Biden presidential election and has announced a large number of electric vehicles since November. Soon after the election, General Motors increased its planned spending on electric vehicles and autonomous vehicle technology from US$2 billion (approximately Rs 147,630 crore) to US$7 billion (approximately Rs 51,670 crore).
Also in November, the company withdrew from the challenge to California’s fuel economy rules endorsed by former President Donald Trump and stated in January that its goal is to eliminate the exhaust emissions of new light-duty vehicles by 2035. The automaker announced in April that it was building a US$2.3 billion (approximately Rs. 1,698 crores) battery plant with LG in Tennessee, similar to the plant currently under construction in Ohio.
General Motors said it will announce two other battery factories later. GM’s stock price rose after the move, but analysts made mixed announcements. Risk, saying it “may put pressure on free cash flow in the medium term” and “several of its electric vehicle sales have been disappointing in recent years.” But Morningstar praised the move, saying that GM explained “correctly” The need to increase spending on new technologies.
In addition to the budget announcement, GM also raised its financial forecast for the second quarter. The company now expects operating profit for the first half of 2021 to be between US$8.5 billion (approximately Rs 62.735 billion) and US$9.5 billion (approximately Rs 70.115 billion), which is higher than US$5.5 billion (approximately Rs 4 billion). ) Projected on top. Despite the supply shortage, GM is still able to “advance” some semiconductors, but the company is “cautious” on its full-year earnings outlook. General Motors shares closed up 1.6% to US$61.76 (approximately Rs 4,560).