GM (1): Accelerating its Electrification Strategy to become the EV Leader in the U.S.
Full-scale launch in main segments from 2022 to 2023, 5 EV plants planned in North America
2022/06/03
- Summary
- Development of EV Strategy: Plan to eliminate internal combustion engines by 2035, but full-scale introduction of EVs in the main segments will begin in 2023
- GM's EV products and launch plans for the U.S. market
- BrightDrop electric commercial vehicle brand: First delivery to FedEx in December 2021
- Self-driving and sharing business: Started testing driverless taxis in urban areas
- Battery production: A fourth plant in North America is also scheduled to be announced.
- Collaboration with Honda: EV vehicle development and the expansion of alliances in the area of autonomous driving
Summary
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| Cadillac Lyriq mid-size SUV in production in March 2022 (Source: GM) |
General Motors Company (GM) was quick to make a bold strategic shift to electrification of its product lineup, and has been preparing for EV production and investing management resources in related fields. To date, the timeline for electrification and the acceleration of related investments have been launched in quick succession toward the total elimination of internal combustion engine vehicles.
In addition, while deciding to withdraw from manufacturing and sales in unprofitable markets such as Europe and India, GM is expressing confidence in the success of its strategy, aiming to double its sales by 2030 by strengthening its EV product lineup and expanding its business into the platform and software fields.
However, production of the Bolt, practically its only mass-market EV, was suspended last year due to recalls, and at this point (Q1 2022), EVs account for less than 1% of GM's U.S. sales. In addition, GM’s global sales scale and market share have continued to shrink due to market narrowing, and supply chain challenges have also become apparent, such as being the OEM most affected by the semiconductor shortage that has continued since 2021. The company’s business structure, which is increasingly dependent on sales and revenues from specific vehicle segments and markets, also carries risks.
In this context, deliveries of Hummer EV, the first EV pickup truck, began at the end of 2021, to be followed by the delivery of the first Cadillac Lyric EV in the summer of 2022, and 2023, and their movements will be watched closely as they will determine the success or failure of GM's electrification strategy and business policy.
This report, as Part 1, summarizes GM's recent activities, announced plans, and global sales, and will report on EV product development and related investments. Part 2, which will be published at a later date, will report on GM's sales trends and corporate performance in the U.S. and global markets. In addition, LMC Automotive's sales forecast for GM will be included.
Related Reports:
WCX 2022 (2) Electrification development speed creates concerns in maintaining pace (May. 2022)
Honda: EV Alliance with Sony, Level 4 Autonomous Driving Trials with GM (Mar. 2022)
CES 2022: Major OEMs accelerate electric vehicle push (Feb. 2022)
U.S. battery electric vehicle strategies for GM, Ford and Stellantis (Dec. 2021)
Motor Bella 2021: OEMs expand EV model lineup in response to market demand (Nov. 2021)
GM: Introducing 30 BEV models by 2025, next-gen Ultium battery will cost 60% less (Mar. 2021)
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