GM: Introducing 30 BEV models by 2025, next-gen Ultium battery will cost 60% less
Introducing EV delivery business BrightDrop and collaborating with Microsoft on autonomous driving
2021/03/25
- Summary
- Becoming carbon neutral by 2040, and eliminating the sales of internal combustion engine vehicles by 2035.
- Next-generation Ultium batteries to be launched in the mid-2020s have double the energy density and costs reduced by 60%
- Launching EV models in a wide range of segments in the U.S. market
- Mobility Services: Introducing BrightDrop, a new delivery system, and conducting demonstration tests in Japan with Honda
- Collaboration with Microsoft for the realization of autonomous driving
- GM's sales volume and business performance: Sales and business performance recovered significantly in the October to December period of 2020
- Production Forecast by LMC Automotive: GM’s light vehicle production in 2024 will be 5.9 million units
Summary
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| GM's Hummer EV Pickup Edition 1 to be released in the second half of 2021 (Source: GM) |
From November 2020 to January 2021, General Motors Company (GM) Chairman and CEO Mary Barra announced a variety of strategies to introduce EVs (electric vehicles).
The company plans to introduce 30 BEV (battery electric vehicle) models globally by 2025, with 40% of the models sold in the U.S. being BEVs. Also, by 2035, GM plans to phase out the sales of internal combustion engine-powered new light-duty vehicles.
GM is planning to introduce EVs in a wide range of segments, from the Hummer luxury pickup and the Cadillac Celestiq super luxury sedan to midsize and compact crossovers.
GM's aggressive EV strategy will be supported by the Ultium battery, which costs 40% less than the battery used in the Bolt EV. In addition, the next generation of Ultium batteries, to be introduced in the mid-2020s, will double the energy density and reduce costs by 60%.
In the area of mobility services, GM announced at CES 2021 its BrightDrop delivery system, which combines an EV (EV600) with an electrically assisted pallet (EP1). FedEx Express will be the first customer, and commercialization is planned in the second half of 2021.
In January 2021, Cruise LLC (Cruise), GM and Honda Motor Co., Ltd. (Honda) agreed to collaborate on autonomous driving mobility services in Japan. By the end of 2021, the company aims to begin technology demonstrations in Japan using GM's Bolt-based Cruise test vehicle.
Also in the same month, Cruise and GM announced a long-term, strategic relationship with Microsoft Corporation (Microsoft) to help make autonomous driving a reality.
GM's global sales in 2020 were 6.828 million units, down 11.5% from 2019 due to the COVID-19 pandemic. However, demand recovered in the October-December 2020 period and exceeded the previous year’s level in every region of the world except South America, with global sales for the same period reaching 2.116 million, up 4.0% year-over-year (y/y).
GM's 2020 sales fell by 10.7% and net profit was down 4.5%. However, the October-December 2020 quarter, when demand recovered, was a record-breaking quarter for the company. The management index “EBIT-adjusted” that GM emphasizes improved from USD 8.4 billion in 2019 (6.1% of sales) to USD 9.7 billion in 2020 (7.9% of sales). The company said that the results were strong enough to support its new growth track centered on EVs.
Related reports:
U.S. Biden Administration to Enact Tougher Fuel Economy Regulations to Promote EVs (Jan. 2021)
OEM Operations in the U.S. in 2020 (Dec. 2020)
Honda's EV Strategy: The Honda e in Japan and EU, Self-driving EV development with GM (Nov. 2020)
The Impact of COVID-19 on the Automotive Industry (Nov. 2020)
GM: Electrification, SUV portfolio enhancement, and autonomous driving (Mar. 2020)
U.S. OEM Electrification Strategies, Including EV Product Timelines (Sep. 2019)
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