By Michael Elkins
General Motors (NYSE:GM) held their investor day presentation today in New York, focusing on 2023-2025. CEO Mary Barra highlighted the company’s electric vehicle segment announcing that the company expects its EV portfolio to be profitable by 2025.
“We expect our EV portfolio to be profitable by 2025 including GHG benefits and revenue from software and after sales. This is before the benefits of the new clean energy tax credits. When we factor that in, we believe by 2025, we will be expecting a portfolio that has got the same margin profile as our ICE portfolio, and that’s by 2025.” — CEO Mary Barra
Barra did not specify what GM's electric vehicle profit margins would be, but GM’s pickup trucks and SUVs with internal combustion engines earn double-digit profit margins.
The American automaker is also accelerating EV production in China, the world's largest market. By 2025, Barra said GM could produce up to 2 million electric vehicles globally. From 2022 through the first half of 2024, GM said it will build 400,000 EVs for North America - a slower timetable than previously forecast.
Barra went on to discuss BrighDrop, the company’s subsidiary created in 2021, specializing in first- and last-mile delivery vehicles including light commercial electric vehicles, ePallets, and cloud-based software. Barra told investors the multi-billion-dollar opportunities afforded by last-mile delivery and online grocery are pure upside and that GM would have “never been able to develop so many outstanding and unique products if they were all ICE retrofit or hybrid programs. The complexity and costs would have been unworkable.”
“There is clearly a lot coming between now and 2025, including next-generation ICE products, and our dealers will be ready.” — Mary Barra.
“Don’t bet against this company. We have been preparing for this for three-plus years," said President of General Motors, Mark Reuss.
Shares of GM are down 0.99% near end of day trading on Thursday.