Tue, October 8, 2024
General Motors hosted Wall Street financial analysts at our flexible manufacturing site in Spring Hill, Tennessee to share our optimism about 2025.
GM’s financial performance reflects both continued strength in gas- and diesel-powered trucks and SUVs and an improving financial outlook for our electric vehicles.
The electric vehicle market continues to grow. Our attractive portfolio is taking EV market share from our competitors and pulling in many new customers. And we are making rapid progress toward EV profitability.
GM has the most diverse EV portfolio in the industry, which is helping drive our growth. In the third quarter we set another GM EV sales record – and we’re now the number two seller of EVs in North America. We remain on track to build and wholesale about 200,000 GM-branded EVs this year.
We have long range, affordable models like the Chevrolet Equinox EV, luxury EVs like the Cadillac LYRIQ, and powerful, capable electric trucks like the GMC HUMMER EV, Chevrolet Silverado EV and GMC Sierra EV. No matter what you like to drive, there’s a GM EV for you. And we’re going to continue adding new EV models in the months ahead, including the Cadillac VISTIQ and OPTIQ, and the return of the Chevy Bolt in late 2025.
We’re also taking steps to address one of the biggest concerns of people reluctant to consider EVs – range anxiety.
Most GM EVs in North America now boast a range of more than 300 miles, and we will continue to add more range – the new Silverado EV RST can go nearly 500 miles on a full charge. Meanwhile, GM is collaborating with other automakers, charging companies like EVgo, and travel center operators like Pilot Flying J to make charging EVs easier and more convenient.
Approaching EV profitability
As range anxiety ebbs and choice expands, demand should continue to grow. Our EV economics will improve as volumes increase and we’re nearing the crossover point to profitability for EV sales. What has been a headwind to earnings will soon become a tailwind.
Cadillac LYRIQ on the line at GM’s Spring Hill Assembly in Tennessee
EV profitability is benefitting from declining battery cell costs, thanks to the quality, efficiency, and scale of our joint venture cell plants, as well as the other efficiencies driven by our purpose-built EV platform. We’ve also been aggressive on reducing fixed costs, which have come down by $2 billion over the last two years net of depreciation and amortization.
EVs do more than contribute to cleaner air – they are driving the creation of thousands of new jobs at GM and our suppliers.
Beyond EVs
As we look ahead to 2025, there are other positive factors.
Our gas- and diesel-powered vehicle portfolio is robust – with eight new or redesigned SUVs coming to market. And we are working closely with our partner to improve our results in China.
As we told investors, we expect to keep our 2025 capital spending consistent with this year’s level. We’ve already made many of the large investments required to grow our EV business, and we’re confident in the earnings power of our product portfolio.
All of this is good news for investors. For everyone else, the heart of the story is that GM’s commitment to American innovation and manufacturing expertise is making our country stronger by delivering our best vehicle portfolio ever.
You can watch a replay of the Investor Day presentations on the GM investor relations site.
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