Alert: GM Boosts EV, AV Investment To $35B
America’s biggest automaker, General Motors (GM), has once again boosted its monetary commitment towards the development of electric and autonomous vehicles. It now says it’ll spend a whopping $35bn on that from 2020 through 2025, a 75% increase from its commitment prior to the pandemic.
- In March last year, GM first said that it’ll spend $20bn on EVs and AVs from 2020 through 2025. Then, in November, it increased its commitment to $27bn. Now, it’s been topped up with another $8bn, implying a major commitment on the company’s part.
- The high spending would fund GM’s ambitious plan to have made 30 new electric vehicles globally from 2020 through 2025. Like many global automakers, the company has seen the clear writing on the wall that electric cars represent the future of the auto market.
- Also, developing autonomous vehicles is very important strategically for an automaker looking for future prospects. In that regard, GM has its Cruise self-driving division, which it recently agreed to provide with a $5bn loan to fund its operations.
- The increase of GM’s funding commitment concurred with the automaker seeing a better-than-expected financial performance this year. It now expects to post an adjusted EBITDA of between $8.5bn and $9.5bn in this year’s first half, thanks to better production and the strong performance of its GM Financial auto loans business.
- “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 has a challenging goal of having over 1 million annual EV sales by 2025. For reference’s sake, it sold 202k electric cars in 2020.