GM Future Plans Reveal Focus Moving Beyond Vehicles
GM is going to look very different in ten years as the company shifts from autos to all aspects of e-mobility.
The next decade promises to bring big changes to GM. In a recent meeting with investors, the company outlined their plan for the road ahead. And that road is apparently paved with gold, as GM promised that they will double their annual revenue to $280 billion by 2030.
How can GM make such a bold claim, and is it do-able? Yes, and yes; but it means change. And GM is changing in a significant way. General Motors will no longer be an auto company in the traditional sense. GM will continue to produce EVs, but they are diversifying their focus to connected services, new hardware and software platforms, and investing in a range of new businesses.
As GM moves beyond solely auto manufacturing, they will be focusing on electrification and its many applications in transportation and other arenas.
“GM has changed the world before and we’re doing it again,” said GM Chair and CEO Mary Barra.
As part of this change, Barra said that the new GM will be a “platform company.” Which is decidedly less sexy than changing the world. This is a common business plan that many tech companies follow. Paul Jacobson, executive vice president and chief financial officer, further expanded on what areas GM will focus, and how that will double profits.
“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 commercializing new businesses,” said Jacobson.
GM is investing big on connected vehicle platforms and companies including OnStar, OnStar Insurance. Autonomous technology is another hot property for GM, including Cruise Origin AV. They have teamed with battery companies, as well as commercial EV ventures such as BrightDrop, a delivery business. Their investment portfolio is where the action is, and includes 20 new startup businesses. Focus seems a little blurry here, with GM taking on a lot of ideas that don’t always seem to gel.
Of course, their greatest goal–in our opinion–is delivering vehicles and technologies that drivers want. Key to this success is their Ultium platform, the centerpiece of their EV architecture. Additionally, the company will promote driver-assistance systems, hands-free technology, and HYDROTEC fuel cell technology.
We are happy to see GM commit to e-mobility and going green. But it is still a little surprising to see GM shift from vehicles after serving as one of the world’s biggest car companies for generations. Change is great, we love change. And if any auto company wants to be around in ten years, change is necessary. But we hope the passion for the autos doesn’t get lost in the shuffle to make bigger profits.
We can only hope that as GM ventures into this brave new world, they never forget it was the thrill of the ride that made them giants. And while vehicles are still at the center of their new business model, it just doesn’t feel like they are the heart.
Stay tuned.
Photos: General Motors
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