GENERAL MOTORS: increased investment in electric and autonomous vehicles

  •   24/06/2021 - 14h12
  •   DEHOUI Lionel

The car manufacturer General Motors continues to work towards the development of the vehicles of tomorrow. The American group has just made official its intention to increase its investments in electric and autonomous cars. Alongside this news, the company has great ambitions for the future. This will enable it to become a key player in the sector.  

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500
GENERAL MOTORS: increased investment in electric and autonomous vehicles

Investment forecast revised upwards in electric and autonomous vehicles

The General Motors Group (GM) has once again confirmed its confidence in its choice of electric and autonomous vehicles. Indeed, the number one car manufacturer in the United States plans to increase its investments in the development of this type of car. It is now expected to increase its investment to 35 billion dollars by 2025.

Compared to the company's last forecast, this represents an increase of 30%. As a reminder, at the end of 2020, the company had already revised its ambitions in these sectors upwards. Furthermore, the Detroit-based group says it is satisfied with the favourable reception of its current electric vehicle models by the public.

In addition, the expenditure linked to the announced investments in electric and autonomous vehicles will be used to build infrastructures. This will allow for the construction of two new electric battery production facilities in the US. These will be in addition to the two plants currently under construction in the country.

 

General Motors has strong ambitions

With the new acceleration of its investments, General Motors has high ambitions. The group's vision is to become the market leader in electric vehicles in North America. On a global level, it aims to be the leader in electric batteries and hydrogen fuel cells.

Together with its subsidiary Cruise, the company aims to become the first company to offer an autonomous vehicle on a large scale. In fact, Cruise is gradually making progress in the development of this type of car.

Recently, it received approval from the California city authorities to offer a driverless passenger transport service. At the same time, the subsidiary is aiming to deploy the vehicles in Dubai.

 

H1-2021 outlook raised

Car manufacturer General Motors has raised its financial targets for the first half of the current financial year. The group now expects adjusted Ebit to be in the range of $8.5 billion to $9.5 billion for the half year. Previously, it was targeting $5.5 billion.

In addition to this increase in guidance, the company believes that it has delivered strong results in the last three quarters. This has enabled it to increase its investments in electric and autonomous vehicles. It should be noted that these improved results are helped by the fact that Americans are increasingly interested in buying new cars.

General Motors also plans to introduce 30 electric vehicle models by 2025. Also, the group plans to sell more than one million of them each year.