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It was a good week for General Motors CEO Mary Barra and her shareholders as she paved the way for the legacy automaker to become a tech-focused “platform innovator.”

anchorthe protectionThe lastChangeChange %
GMGeneral Motors Company58.57+2.13+3.77%

The stock rose 6.68% for the week after the company plans to double revenue by 2030 while expanding profit margins on its quest to become the world’s top electric vehicle maker at Investor Day.

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“The vehicle is really becoming a software platform,” Barra told Granthshala Business’ Grady Trimble in a one-on-one interview. “We think we have some of the most beautiful vehicles we’ve had on the road in our careers, but still being able to have a full software and services business with a very different margin structure leads to tremendous growth. “

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The company plans to rapidly scale up EV manufacturing, with more than 50% of its plants in North America and China capable of EV production by 2030. Among the new fully electric offerings will be Chevrolet, GMC and Hummer, Buick crossovers, as well as trucks. Cadillac LYRIQ and CELESTIQ. Electric versions of the Chevrolet Blazer and Equinox are also in the works. The Equinox will cost around $30,000, which is significantly more affordable than the previously announced electric vehicles by General Motors.

GM has announced a goal of going completely electric by 2035. However, electric vehicles account for only 3% of GM’s new vehicle sales. It is also giving competition to Tesla and Ford.

anchorthe protectionThe lastChangeChange %
TSLATesla, Inc.785.49-8.12-1.02%
FFord Motor Company15.12+0.23+1.54%

Goldman Sachs raised its price target on the stock from $59 to $65, and Credit Suisse maintained its $75 target, while issuing positive commentary on the plan.

The stock has gained over 40 per cent this year.

When asked if the company is moving too quickly to build vehicles that are not sold to consumers, Barra said, “We’ve done a tremendous amount of research with customers and they tell us what The vehicle is beautiful, if it delivers the functionality… the perfect range of over 300 miles and a robust charging infrastructure, they are on electric vehicles.”

These vehicles will be equipped with new software and services, including its new hands-free driving technology Ultra Cruise, which will be launched starting 2023 and will be able to handle 95% driving scenarios.

GM is also focusing on developing its electric delivery vehicle company Brightdrop and its autonomous vehicle company Cruise.

Two short-term issues affecting General Motors are infrastructure negotiations and computer chip shortages in Washington, D.C., which have been plaguing automakers for months.

General Motors new vehicle sales declined 33% year-over-year in the third quarter, largely due to chip supply chain problems. Barra said he expects chip supply to stabilize in the fourth quarter and will continue to do so in 2022.

“We may be most affected because some specific facilities in Malaysia were heavily affected by COVID,” Barra explained. “We had a team of people there. We shared our safety protocols so that they can safely get people back to work and so we are confident, as we move forward, we will start to see more and more recoveries.” “