GM Hits The Gas Pedal On Its EV Transformation

Electric vehicles and e-mobility are the new (re)start for all the automakers, and whoever goes the extra mile will secure a better future and results. General Motors GM, the automaker with experience of over 100 years, is no different. The company decided to increase the electric and autonomous segment investments, so the new plan is to spend $35 billion until 2025. This change goes hand-by-hand with announcing that GM will extend a $5 billion credit line to purchase hundreds of autonomous and battery-powered shuttles through its subsidiary Cruise.

The new figures significantly increase the initial plan (70% increase) and the revised plan announced last November (30% increase). Keeping in mind that the EV and autonomous segment is just 2% of the new car market, this amount seems even bigger! And that is how you hit a pedal to the metal.

How Does The Market Feel About EVs?

It looks the whole market has a similar trend when it comes to investments in EVs. The world's second-largest automaker Volkswagen VWAGY, announced an even higher capital expenditures plan. In the next five years, the German automaker plans to spend $86 billion on electric vehicles. Ford F wants to electrify 40% of its vehicle offer, and the company is ready to spend $30 billion by 2030. So, GM has serious competition if it wants to position itself as the largest EV manufacturer in North America.

Tesla As The EV Market Leader

With aggressive plans like these, the traditional automakers are seriously trying to overtake Tesla's TSLA leading position in the EV market. Tesla used the advantage of the first-mover to transform the EV market, similar to Netflix NFLX and Amazon AMZN, which changed the entertainment and retail world, respectively. However, the amount of investments that the legacy automakers are pouring into the EV field gives the consumers more and more options, straightened with their experience in the automotive industry. Tesla will have to fight with all of that.

Outlook

GM's first milestone is 2025 when it plans to launch 30 new electric models. Out of those 30, 20 models will be available in North America, throughout GM brands like Cadillac, Buick, GMC, and Chevrolet, covering all price ranges. This will be a big change from GM today's offer in the US, which offers only the Chevy Bolt and the Chevy Bolt EUV.

Hummer EV models are the first to come later this year, and Cadillac models Lyriq and Celestiq will follow. Of course, the pick-up truck segment will not be left out, and Chevy Silverado will get an electric version. In addition, the company plans to build two new factories in the US to produce batteries and the factories in Tennessee and Ohio that are already under construction. If all that gets through, maybe GM has the potential to become the largest EV manufacturer in North America. We hope that the current semiconductor shortage will not severely alter the company's plans.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time, please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution, contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist, contact: contributors@iamnewswire.com

The post-GM Hits the Gas Pedal On Its EV Transformation appeared first on IAM Newswire.

Image by Tayeb MEZAHDIA from Pixabay