Thu, November 17, 2022
Company outlines key near term performance indicators
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In the next three years,
GM will have multiple entries in pickup, SUV and luxury segments that represent about 70% of EV industry volume, including the Chevrolet Silverado EV, Blazer EV and Equinox EV, the Cadillac LYRIQ and the GMC Sierra EVGM is launching a new digital retail platform with itsU.S. dealer partners to enhance the shopping and purchase experience for EV customers and reduce costs toGM by an estimated$2,000 per vehicle- Five
GM assembly plants in theU.S. ,Canada andMexico will be building EVs - BrightDrop —
GM's tech startup creating EVs, eCarts and software — is on track to reach$1 billion in revenue in 2023, asGM's CAMI plant inOntario launches full production of the BrightDrop Zevo 600 delivery van next year, and scaling to a projected 50,000 units annually by 2025 GM's battery cell joint venture Ultium Cells will be operating plants inOhio ,Tennessee andMichigan by the end of 2024, making the company a leader in domestic cell production; a fourthU.S. cell plant is plannedGM has secured binding commitments for all the battery raw material it needs to deliver its 2025 capacity target- The company continues to secure its needs beyond 2025 with strategic supply agreements and direct investments in natural resource recovery, processing and recycling
GM's EV growth is supported by a highly profitable portfolio of internal combustion engine vehicles inNorth America , including market-leading pickups and SUVs, great quality, and consistently high scores for customer satisfaction with dealer sales and service
In 2023, Chevrolet and GMC will press their advantage in the pickup market with the new 2024 Chevrolet Silverado HD and GMC Sierra HD, which will be available in the first half of 2023, as well as the new Chevrolet Colorado and
Investor Roadmap
During the meeting with investors,
"We've built the foundation to rapidly scale our EV portfolio, make it profitable and maintain strong margins during a period of high investment," said Jacobson. "Our Ultium Platform and battery technology will only get better and less expensive over time, and we have enterprise-wide momentum in EVs, Cruise, software-defined vehicles and new businesses like BrightDrop that will help us achieve our revenue and margin targets by the end of the decade."
- Total company revenue is expected to grow at a 12% compound annual rate through 2025, reaching more than
$225 billion as EV volumes and software revenue grow. Revenue from EVs is expected to be more than$50 billion in 2025. GM expects to build 400,000 EVs inNorth America from 2022 through the first half of 2024 and grow capacity to 1 million units annually inNorth America in 2025.GM expects to reachU.S. battery cell capacity of more than 160 GWh and 1.2 million cells per day by mid-decade.GM is focused on reducing the cell costs for the next generation of its Ultium batteries to under$70 /kWh by mid- to late-decade- Total capital spending is expected to be
$11-13 billion per year through 2025, funded by ongoing healthy cash flows. GM expects to maintain its historical EBIT-adjusted margins of 8-10% inNorth America through this growth investment period.GM expects to earn low- to mid-single-digit EBIT-adjusted margins on its EV portfolio in 2025, before the positive impact of clean energy tax credits.
Guidance Reconciliations
The following table reconciles expected Net income attributable to stockholders under
Year Ending |
|
Net income attributable to stockholders |
$ 10.0-10.8 |
Income tax expense |
1.8-2.0 |
Automotive interest expense, net |
0.7 |
Adjustments(a) |
1.0 |
EBIT-adjusted(b) |
$ 13.5-14.5 |
__________ |
|
a) |
These adjustments were excluded because they relate to the one-time modification of Cruise stock incentive awards and the resolution, in the three months |
b) |
We do not consider the potential future impact of adjustments on our expected financial results. |
The following table reconciles expected EPS-diluted under
Year Ending |
|
Diluted earnings per common share |
$ 6.01-6.51 |
Adjustments(a)(b) |
0.74 |
EPS-diluted-adjusted(c) |
$ 6.75-7.25 |
__________ |
|
a) |
Refer to the reconciliation of expected Net income attributable to stockholders under |
b) |
Includes the tax effect of each adjustment as determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment |
c) |
We do not consider the potential future impact of adjustments on our expected financial results. |
The following table reconciles expected automotive net cash provided by operating activities under
Year Ending |
|
Net automotive cash provided by operating activities |
$ 18.8-20.8 |
Less: Capital expenditures |
9.0-10.0 |
Adjustments(a) |
0.2 |
Adjusted automotive free cash flow(b) |
$ 10.0-11.0 |
__________ |
|
(a) |
These adjustments relate to the patent royalty matters and the GM Korea wage litigation. |
(b) |
We do not consider the potential future impact of adjustments on our expected financial results. |
Cautionary Note on Forward-Looking Statements: This press release and related comments by management may include "forward-looking statements" within the meaning of the
View original content:https://www.prnewswire.com/news-releases/gm-raises-2022-guidance-and-expects-north-american-ev-portfolio-to-be-profitable-in-2025-as-annual-capacity-tops-1-million-301682014.html
SOURCE
Jim Cain, GM Communications, 313-407-2843, james.cain@chevrolet.com; Ashish Kohli, GM Investor Relations, 847-964-3459, ashish.kohli@gm.com; David Caldwell, GM Communications, 586-899-7861, david.caldwell@gm.com; Michael Heifler, GM Investor Relations, 313-418-0220, michael.heifler@gm.com
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