DETROIT, June 16, 2021 /PRNewswire/ -- General Motors
Co. (NYSE: GM) announced today it will increase its EV and AV
investments from 2020 through 2025 to $35
billion, representing a 75 percent increase from its initial
commitment announced prior to the pandemic.
The company's enhanced commitment will accelerate its
transformative strategy to become the market leader in EVs in
North America; the global leader
in battery and fuel cell technology through its Ultium battery
platform and HYDROTEC fuel cells; and through Cruise, be the
first to safely commercialize self-driving technology at
scale.
"We are investing aggressively in a comprehensive and
highly-integrated plan to make sure that GM leads in all aspects of
the transformation to a more sustainable future," said GM Chair and
CEO Mary Barra. "GM is targeting
annual global EV sales of more than 1 million by 2025, and we are
increasing our investment to scale faster because we see momentum
building in the United States for
electrification, along with customer demand for our product
portfolio."
GM first shared its vision of a world with zero crashes, zero
emissions and zero congestion nearly four years ago. Key factors
changing the landscape include strong public reaction to the GMC
HUMMER EV and HUMMER EV SUV, the Cadillac LYRIQ and the Chevrolet
Silverado electric pickup; GM and dealer investments in the EV
customer experience; public and private investment in EV charging
infrastructure; and the global policy environment.
"There is a strong and growing conviction among our employees,
customers, dealers, suppliers, unions and investors, as well as
policymakers, that electric vehicles and self-driving technology
are the keys to a cleaner, safer world for all," Barra said.
Today's announcement builds on GM's initial commitment announced
in March 2020 to invest $20 billion from 2020 through 2025, including
capital, engineering expenses and other development costs, to
accelerate its transition to EVs and AVs. In November 2020, the company increased its planned
investment over the same period to $27 billion.
These investments are enabled by GM's strong underlying
business, including record EBIT-adjusted in the last three
quarters. GM now expects to deliver better-than-expected results in
the second quarter despite the industry-wide impact of the
semiconductor shortage.
The company now expects its first-half EBIT-adjusted will be
between $8.5 and $9.5 billion due to continued strong demand,
better-than-expected results at GM Financial, and improved
near-term production from the pull forward of semiconductors from
the third quarter. GM expects the second half of 2021 will continue
to be complex and fluid. The company will provide additional
updates on its year-to-date financial results and outlook for the
second half of 2021 during its second-quarter earnings conference
call on Aug. 4.
GM Chief Financial Officer Paul
Jacobson will also participate in the virtual Deutsche Bank
investor conference today at 1:20 p.m. EDT. GM is also
confirming that it will host an Investor Day in the Detroit area Oct.
6-7.
GM's additional investments and new collaborations are
far-reaching and designed to create even greater competitive
advantages for the company. They include:
- Accelerating Ultium battery cell production in the United States: GM is accelerating
plans to build two new battery cell manufacturing plants in
the United States by mid-decade to
complement the Ultium Cells LLC plants under construction in
Tennessee and Ohio. Further details about these new U.S.
plants, including the locations, will be announced at a later
date.
- Commercializing U.S.-made Ultium batteries and HYDROTEC fuel
cells: In addition to collaborating with Honda to build
two EVs using Ultium technology – one SUV for the Honda brand and
one for the Acura brand – GM announced June
15 it has signed a memorandum of understanding to
supply Ultium batteries and HYDROTEC fuel cells to Wabtec
Corporation, which is developing the world's first 100 percent
battery-powered locomotive.
Separately, GM will supply HYDROTEC to Navistar, Inc., which is
developing hydrogen-powered heavy trucks to launch in 2024, and
Liebherr-Aerospace, which is developing hydrogen-powered auxiliary
power units for aircraft. Lockheed Martin and GM also are teaming
up to develop the next generation of lunar vehicles to
transport astronauts on the surface of the Moon, leveraging GM's
expertise in electric propulsion and autonomous technology.
Today, GM is confirming plans to launch its third-generation
HYDROTEC fuel cells with even greater power density and lower costs
by mid-decade. GM manufactures its fuel cells in Brownstown Charter
Township, Michigan, in a joint
venture with Honda.
- Expanding and accelerating the rollout of EVs for retail and
fleet customers: In November
2020, GM announced it would deliver 30 new EVs by 2025
globally, with two-thirds available in North America. Through the additional
investments announced today, GM will add to its North America plan new electric commercial
trucks and other products that will take advantage of the creative
design opportunities and flexibility enabled by the Ultium
Platform. In addition, GM will add additional U.S. assembly
capacity for EV SUVs. Details will be announced at a later
date.
- Safely deploying self-driving technology at
scale: Cruise, GM's majority-owned subsidiary,
recently became the first company to receive permission from
regulators in California to
provide a driverless AV passenger service to the public.
Cruise also was recently selected as the exclusive provider of AV
rideshare services to the city of Dubai and is working with Honda to
begin development of an AV testing program in Japan. In
addition, GM Financial will provide a multi-year, $5 billion credit facility
for Cruise to scale its Cruise Origin fleet.
Developed through a partnership between
GM, Honda and Cruise, the Cruise Origin will be
built at GM's Factory ZERO Detroit-Hamtramck Assembly Center
starting in early 2023.
General Motors (NYSE:GM) is a global company focused
on advancing an all-electric future that is inclusive and
accessible to all. At the heart of this strategy is the Ultium
battery platform, which will power everything from mass-market to
high-performance vehicles. General Motors, its subsidiaries and its
joint venture entities sell vehicles under the
Chevrolet, Buick, GMC, Cadillac, Baojun and
Wuling brands. More information on the company and its
subsidiaries, including OnStar, a global leader in vehicle
safety and security services, can be found
at https://www.gm.com.
Cautionary Note on Forward-Looking
Statements: This press release and related
comments by management may include "forward-looking statements"
within the meaning of the U.S. federal securities laws.
Forward-looking statements are any statements other than statements
of historical fact. Forward-looking statements represent our
current judgement about possible future events and are often
identified by words such as "anticipate," "appears,"
"approximately," "believe," "continue," "could," "designed,"
"effect," "estimate," "evaluate," "expect," "forecast," "goal,"
"initiative," "intend," "may," "objective," "outlook," "plan,"
"potential," "priorities," "project," "pursue," "seek," "should,"
"target," "when," "will," "would," or the negative of any of those
words or similar expressions. In making these statements, we rely
upon assumptions and analysis based on our experience and
perception of historical trends, current conditions, and expected
future developments, as well as other factors we consider
appropriate under the circumstances. We believe these judgements
are reasonable, but these statements are not guarantees of any
future events or financial results, and our actual results may
differ materially due to a variety of factors, many of which are
described in our most recent Annual Report on Form 10-K and our
other filings with the U.S. Securities and Exchange Commission. We
caution readers not to place undue reliance on forward-looking
statements. Forward-looking statements speak only as of the date
they are made, and we undertake no obligation to update publicly or
otherwise revise any forward-looking statements, whether as a
result of new information, future events, or other factors that
affect the subject of these statements, except where we are
expressly required to do so by law.
Guidance Reconciliation
Non-GAAP measures allow
management and investors to view operating trends, perform
analytical comparisons and benchmark performance between periods
and among geographic regions to understand operating performance
without regard to items we do not consider a component of our core
operating performance. As a result, we believe these non-GAAP
measures are useful for our investors. Our non-GAAP measures
include EBIT-adjusted, which is presented net of noncontrolling
interests and is used by management and can be used by investors to
review our consolidated operating results because it excludes
automotive interest income, automotive interest expense and income
taxes as well as certain additional adjustments that are not
considered part of our core operations. Our calculation of
EBIT-adjusted may not be comparable to similarly titled measures of
other companies due to potential differences between companies in
the method of calculation. As a result, the use of EBIT-adjusted
has limitations and should not be considered superior to, in
isolation from, or as a substitute for, related U.S. GAAP
measures.
The following table reconciles expected Net income attributable
to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars
in billions):
|
Six Months
Ending
|
|
June 30,
2021
|
Net income
attributable to stockholders
|
$
6.2 - 7.0
|
Income tax
expense
|
1.8 - 2.0
|
Automotive interest
expense, net
|
0.5
|
EBIT-adjusted(a)
|
$
8.5 - 9.5
|
(a) We do not
consider the potential future impact of adjustments on our expected
financial results.
|
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SOURCE General Motors Co.