General Motors will spend over $20 billion through 2025 to beat Tesla in the all-electric and autonomous vehicles industry, quickly-growing market, reports CNBC.
General Motors moves into the electric vehicle game
This indicates GM’s biggest investment against doubters on Wall Street, who doubt the 110-year-old automaker can walk industrial water against Tesla, as the whole automotive industry hinges to all-electric and sustainable vehicles.
GM entered and discussed a sum of 11 new all-electric vehicles on Wednesday as part of its strategies through 2025, which has at minimum 20 new models scheduled to hit the market by 2023, reports CNBC.
No additional details were released about how much of the $20 billion would particularly fund the development of all-electric vehicles, but GM did say the quantity will be directed to engineering and capital resources.
This is a enormous opportunity for us. The biggest prospect any of us has ever seen for this company, surely,” said GM President Mark Reuss. “And we’re all-in. It signifies a chance to reinvent the company and retune our brands. It will change this company and people’s insight of it forever.”
GM shares were up approximately 2%, at $31.03 per share after the announcement. This is important because GM’s stock is down 21.5% year-over-year, in addition to an approximately 16% decline in 2020, so far.
GM boosts the electric and autonomous vehicle ante
GM said its new all-electric vehicle suite will make about 644 kilometers (400 miles) or more in range, charge over 160 kilometers (100 miles) in only 10 minutes, and increase speed from zero to 96 kilometers per hour (60 mph) in only three seconds. If the experience meets the design, these specifications are all neck-to-neck or better than Tesla’s present suite of all-electric vehicles.
For assessment, Tesla’s Model 3 can drive 518 kilometers, accelerate zero to 96 kilometers per hour (60mph) in 3.2 seconds, and recharge for a capacity of 276 kilometers in 15 minutes.
Numerous of GM’s new products were clay models and varied from SUVs to pickups to new developments of the Bolt EV. Some distinguished ones included a “flagship” Cadillac car, a Chevrolet pickup, a GMC Hummer pickup and a big Escalade-sized SUV. Sadly, GM didn’t issue any photos or versions of the vehicles shown, as of Wednesday.
GM emphasized that its next-gen all-electric suite of vehicles will be money–making, and keep the profit margins that have in the past deterred private advancement into sustainable vehicles. This is mainly thanks to a sharp decline in battery cell costs, reports CNBC.
Driven by proprietary “Ultium” batteries, GM’s new all-electric vehicle platform will push the performance envelope outside GM’s current suite of all-electric vehicles, counting the Bolt EV — to attain a charge of 160 (100 miles) of range in 30 minutes, with a highest range of 416 kilometers (259 miles).
The GMC Hummer pickup will be the first all–electric vehicle with this new technology fitted to go to market, in Fall 2021, pursued by a crossover of a Cadillac for U.S. markets in 2022. GM will also disclose a different crossover-based Chevrolet Bolt, with its present EV platform called the Bolt EUV later this year. Production will start in early-2021.