1Robo
2021-05-07
GM to join the EV market
GM under Barra will sell more than cars and trucks as automaker targets trillions in new markets
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Leveraging its core business, GM is targeting trillions in future markets that stretch far beyond just selling cars and trucks.\n\"This is just the beginning for the next-generation of General Motors,\" Barra told investors Wednesday during GM'sfirst-quarter earningscall. \"We are well on track with our plans to transform our company and lead the industry into the future.\"\nLeading much of the expansion is GM's global growth and innovation team. New businesses from the team have include electric commercial vehicles, auto insurance, military defense and expanding services of its connected OnStar brand with more new ventures on the way.\n$1.3 trillion\nThe Detroit automaker's innovation division has identified $1.3 trillion in new market opportunities that it believes compliments its core business and it has a right to \"win in,\" executives said. That does not include GM's majority-owned autonomous vehicle unit Cruise, which could bean $8 trillionmarket in the future, orurban air mobility, which it predicts will be a more than $1 trillion market of its own.\n\"Our whole goal is to grow the [total addressable market] through utilizing existing GM assets, know how, IP where we have existing capabilities to solve new problems for maybe customers we have now, maybe customers that we don't have now,\" Pam Fletcher, GM vice president of global innovation, said during a video interview.\nThe expansion plans, if successful, would alter how the company makes money and could help temper the boom and bust cycles of the automotive industry. GM would rely more on recurring revenue from software and services than simply producing and selling vehicles.\nGM's innovation team has about 20 initiatives in its pipeline that target that $1.3 trillion in potential new markets, according to Alan Wexler, GM's senior vice president of innovation and growth.\nWexler said the team is evaluating urban air mobility, think flying cars and taxis, for the mid-2030s as well as more sustainable businesses like recycling electric vehicle batteries to use as power generators.\nRenderings from GM of the \"Cadillac halo portfolio\" that includes concepts of an autonomous shuttle (right) and an electric vertical take-off and landing (eVTOL) aircraft, also known as a flying vehicle.Screenshot via GM\nThe mission is to have the innovation unit, which was created in 2018, serve as a start-up incubator within the automaker, allowing each business to move more quickly than GM traditionally has. Wexler describes the end goal as creating a company that will be radically different than it is today.\n\"I think the most exciting thing and the reason why I'm here is we're creating a company that doesn't exist in the world, and frankly we're creating an industry that doesn't exist in the world and we're doing it for the sake of people on the planet,\" he said during a video interview.\nGlobal growth strategy\nBoth Wexler, former CEO of consulting firm Publicis Sapient, as well as Fletcher, a GM veteran, have been tasked by Barra to lead the automaker's growth into new segments.\nSo far, the innovation division has launched a military defense unit, a new commercial EV businesscalled BrightDropand expanded GM's decades-old OnStar connectivity brand into insurance, vehicle logistics and security services.\n\"What we're focused on doing here is to set the context for everything that we do,\" Wexler said. \"We're not looking at the sideview or the rearview mirror, if I can use an auto analogy. We're really looking toward the future.\"\nBarra told investors this week that GM remains fully committed to investing in its new businesses as well as EVs despite the coronavirus pandemic and anongoing global shortageof semiconductor chips.\n\"The challenges we have with semiconductors right now are a temporary situation,\" she said. \"We will work through that and move beyond it, and it's not impacting our transformation and growth strategy.\"\nBarra's intentions to reimagine the company largely began publicly in 2017, when the company acquired Cruise and launched mobility initiatives such as its nowdefunct Maven mobility brand. It did so while making significant cuts to its business operations, including exiting Europe, Russia and other markets.","news_type":1},"isVote":1,"tweetType":1,"viewCount":509,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["GM"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":19,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/105715903"}
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