Image source: General Motors
General Motors Company (NYSE: GM) plans to boost global spending on electric and autonomous vehicles to $35 billion through 2025, a 75% increase from the spending previously announced by the automaker.
In November 2020, GM upped its spending plans from $20 billion — a figure that was announced in March before the onset of the COVID-19 pandemic — to $27 billion.
On Wednesday, GM chief executive officer and chairwoman Mary Barra said, “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.”
“GM is targeting annual global EV sales of more than 1 million by 2025, and we are increasing our investment to scale faster because we see momentum building in the United States for electrification, along with customer demand for our product portfolio,” she added.
Barra said there is “a strong and growing conviction among our employees, customers, dealers, suppliers, unions and investors, as well as policymakers, that electric vehicles and self-driving technology are the keys to a cleaner, safer world for all.”
GM said that it hopes to become the “market leader” in electric vehicles in North America, as well as “the global leader in battery and fuel cell technology through its Ultium battery platform and HYDROTEC fuel cells.”
As part of the increased spending, GM will build two additional battery plants in the US by mid-decade to complement the two Ultium Cells plants currently under construction in Tennessee and Ohio. GM said that it will release additional details on the new U.S. plants, including their specific locations, at a later date.
Earlier this year, GM said it was setting a goal to sell only zero-emissions cars, trucks and sport utility vehicles by 2035.
Wedbush analyst Daniel Ives noted to The Associated Press that GM and Ford are trying to outdo each other with announcements and competing for what is expected to be a $5 trillion market over the next decade.
Wednesday’s announcement comes about a month after Ford Motor Company said it would raise its EV spending by more than a third to over $30 billion by 2030.
“This is an EV arms race going on in Detroit with Ford and GM competing for market and mind share in this green tidal wave,” Ives told the media outlet. “We view EV as the biggest transformation in the auto industry since the 1950s, and it’s shaking up the Detroit auto stalwarts in a major way as they chase after Tesla.”
Source: Equities News