With its intent to transform into a growth company driven by EVs, connected services and new businesses, General Motors (GM) has provided a detailed roadmap, also giving a glimpse of how the company plans to double its annual revenue and expand margins to 12% to 14% by 2030.
The global company concluded the first of two days of investor meetings by sharing its growth plans. Leaders – many of whom recently joined GM from other companies detailed how the company's compelling hardware and software platforms will combine to create growth, expand margins, add customers and diversify revenues.
Mary Barra, Chairperson & CEO, GM, said, 'GM has changed the world before and we're doing it again. We have multiple drivers of long-term growth and I've never been more confident or excited about the opportunities ahead.'
Paul Jacobson, Executive Vice President & CFO, GM, said, 'GM is unlocking a secular growth story that is changing the trajectory of our business. Simply stated, we are at an inflection point in which we expect revenue to double by 2030 while also expanding our margins. We will achieve this by growing our core business of designing, building, and selling world-class ICE, electric and autonomous vehicles, growing software and services with high margins and entering and commercialising new businesses.'
According to Jacobson, the company's financial targets include compelling revenue growth with improved diversification, margin expansion, compelling platforms, commercialisation of cruise, internally funded capital spending, strong cash conversion and a strong balance sheet.
During the first day of presentations and discussions with investors, GM leaders described how the company's Ultium and Ultifi platforms underpin the company's growth strategy. According to the company, the opportunities are many. For instance, the vehicle maker projects annual software and services revenue opportunities in the $ 20 billion to $ 25 billion range from a projected 30 million connected vehicles by the end of the decade. OnStar is already the industry's leading connectivity platform with more than 16 million connected vehicles on the road today, with software and services generating a projected $2 billion in annual revenue. Part of GM's software and services growth comes from OnStar Insurance, projected to have a potential revenue opportunity of more than $6 billion annually by the end of the decade.
According to GM, the company has a portfolio of 20 new startup businesses – several already launched, others nearing launch – helping to provide a constant innovation pipeline and potential new revenue streams. In addition, leaders provided a preview of an all-new software-enabled startup in development, internally called Future Roads, which uses data analytics to create insights about safer roadways and communities.
During the presentations, the company also announced increasing its investment in charging infrastructure to nearly three-quarters of a billion dollars through 2025, covering all charging domains, including home, workplace, and public charging throughout the U.S. and Canada. This investment will significantly increase access to reliable, public charging with the superior customer experience of Ultium Charge 360.