GM challenging Tesla with new upcoming EV portfolio
#1
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General Motors Co plans to launch a new family of electric vehicles in 2021 that will cost less to build and make a profit for the U.S. No. 1 automaker, Chief Executive Mary Barra told investors on Wednesday.
Her plans represent a direct challenge to money-losing electric vehicle specialist Tesla Inc, which is struggling to get its more affordable, high-volume Model 3 launched and recently reported its largest-ever quarterly loss.
"We are committed to a future electric vehicle portfolio that will be profitable," Barra said at the Barclays Global Automotive Conference in New York.
Electric and autonomous vehicles - known in the industry as EVs and AVs - are widely seen as the keystones of future transport, but Tesla, Ford Motor Co and other manufacturers are still working out how to make money on them.
GM is looking to break out of that pattern by developing an all-new electric vehicle platform that will accommodate multiple sizes and segments, to be sold by different GM brands in the United States and China, Barra said, adding new details to GM's aggressive electrification strategy.
In early October, GM said it planned to launch 20 new electric vehicles by 2023, but did not provide specifics.
In comparison, rival Ford has said it plans to introduce 13 "electrified" vehicles - mostly hybrid gasoline-electric models - by 2022.
GM's shares were down 0.4 percent at $42.84 in midday trade. Tesla and Ford shares were also down slightly in a broadly lower market.
Barra said GM aims to be selling 1 million electric vehicles a year by 2026, many of them in China, which has set strict production quotas on such vehicles. On Monday, GM's China chief said the automaker and its joint-venture partners will be able to meet the country's 2019 electric vehicle requirements without purchasing credits from other companies.
GM's cost reduction efforts on electric vehicles center on a new battery system that will be more than 30 percent cheaper than the one that powers the Chevrolet Bolt.
The company aims to cut the cost of its lithium-ion batteries to less than $100 per kilowatt-hour from $145 per kilowatt-hour by 2021, which would bring the overall cost of electric vehicles much closer to comparable gasoline-engine models.
GM said the new batteries would hold more energy and charge quicker. The company is aiming to boost electric vehicle range to more than 300 miles (483 km) with the new batteries. The current Bolt is rated at 238 miles between charges.
Barra said GM will have the ability to manufacture high volumes of the new batteries at plants in the United States and China. She said GM projects sales of 1 million electric vehicles a year by 2026. So far, the company has sold about 17,000 Bolts.
GM's new electric vehicle platform in 2021 will serve as a base for at least nine derivatives, ranging from a compact crossover to a large seven-passenger luxury sports utility vehicle and a large commercial van. It will also provide the underpinning for a shared autonomous vehicle (AV) that GM plans to put into commercial service in 2021.
Before the new platform arrives, GM plans to introduce three new electric vehicles by 2020, including two crossovers, that will share basic components with the Bolt, Barra said. She described GM as "the only fully integrated developer of AVs with true scale capability."
"We are not capital constrained in our EV or AV development," she added.
GM is generating strong profit from selling trucks and sport utility vehicles in the United States, and Barra reaffirmed a promise to investors that GM's core North American vehicle business should achieve 10 percent pre-tax profit margins.
Her plans represent a direct challenge to money-losing electric vehicle specialist Tesla Inc, which is struggling to get its more affordable, high-volume Model 3 launched and recently reported its largest-ever quarterly loss.
"We are committed to a future electric vehicle portfolio that will be profitable," Barra said at the Barclays Global Automotive Conference in New York.
Electric and autonomous vehicles - known in the industry as EVs and AVs - are widely seen as the keystones of future transport, but Tesla, Ford Motor Co and other manufacturers are still working out how to make money on them.
GM is looking to break out of that pattern by developing an all-new electric vehicle platform that will accommodate multiple sizes and segments, to be sold by different GM brands in the United States and China, Barra said, adding new details to GM's aggressive electrification strategy.
In early October, GM said it planned to launch 20 new electric vehicles by 2023, but did not provide specifics.
In comparison, rival Ford has said it plans to introduce 13 "electrified" vehicles - mostly hybrid gasoline-electric models - by 2022.
GM's shares were down 0.4 percent at $42.84 in midday trade. Tesla and Ford shares were also down slightly in a broadly lower market.
Barra said GM aims to be selling 1 million electric vehicles a year by 2026, many of them in China, which has set strict production quotas on such vehicles. On Monday, GM's China chief said the automaker and its joint-venture partners will be able to meet the country's 2019 electric vehicle requirements without purchasing credits from other companies.
GM's cost reduction efforts on electric vehicles center on a new battery system that will be more than 30 percent cheaper than the one that powers the Chevrolet Bolt.
The company aims to cut the cost of its lithium-ion batteries to less than $100 per kilowatt-hour from $145 per kilowatt-hour by 2021, which would bring the overall cost of electric vehicles much closer to comparable gasoline-engine models.
GM said the new batteries would hold more energy and charge quicker. The company is aiming to boost electric vehicle range to more than 300 miles (483 km) with the new batteries. The current Bolt is rated at 238 miles between charges.
Barra said GM will have the ability to manufacture high volumes of the new batteries at plants in the United States and China. She said GM projects sales of 1 million electric vehicles a year by 2026. So far, the company has sold about 17,000 Bolts.
GM's new electric vehicle platform in 2021 will serve as a base for at least nine derivatives, ranging from a compact crossover to a large seven-passenger luxury sports utility vehicle and a large commercial van. It will also provide the underpinning for a shared autonomous vehicle (AV) that GM plans to put into commercial service in 2021.
Before the new platform arrives, GM plans to introduce three new electric vehicles by 2020, including two crossovers, that will share basic components with the Bolt, Barra said. She described GM as "the only fully integrated developer of AVs with true scale capability."
"We are not capital constrained in our EV or AV development," she added.
GM is generating strong profit from selling trucks and sport utility vehicles in the United States, and Barra reaffirmed a promise to investors that GM's core North American vehicle business should achieve 10 percent pre-tax profit margins.
#2
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I will believe it when I see it. Tesla is creating such an interesting brand that I don't know if anyone will truly compete with them. They're un-veiling their tractor trailer tomorrow night (and it's autonomous I believe).
Remember, Tesla is not a car company....they're an energy company. Just like AAPL has done, I think Tesla will create an "ecosystem" that keeps people as customers for a very long time and has them branching off into different product options throughout.
Remember, Tesla is not a car company....they're an energy company. Just like AAPL has done, I think Tesla will create an "ecosystem" that keeps people as customers for a very long time and has them branching off into different product options throughout.
#3
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Will not believe this until GM figures out how to style and market an EV or hybrid. Right now they are batting 0 for 3 in the modern era with the 1st gen Volt, 2nd gen Volt, and new Bolt EV. All three of those cars have not sold up to expectations, while Toyota has sold god knows how many Prius cars and has a really good brand recognition with them, along with a proven track record of reliability with their hybrids.
That's the thing with GM, they can build pretty damn cool and innovative "green" cars, they just have no idea how to style them, how to package them or how to market them. You slap a Chevrolet badge on a Volt or Bolt, nobody will buy it. That brand is associated with Corvettes, pickup trucks, Suburbans, and 1960's muscle cars, hell yeah America, lets go burn some rubber and gasoline.
That's the thing with GM, they can build pretty damn cool and innovative "green" cars, they just have no idea how to style them, how to package them or how to market them. You slap a Chevrolet badge on a Volt or Bolt, nobody will buy it. That brand is associated with Corvettes, pickup trucks, Suburbans, and 1960's muscle cars, hell yeah America, lets go burn some rubber and gasoline.
#5
Lexus Champion
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I am waiting for the mainline, mass-market automakers, including VW, BMW, Mercedes-Benz and GM, to step up and be serious about building and selling electric vehicles, and prove that it can be done on time, on budget, meeting all the technical and safety requirements, and be profitable. I have no doubt that it can be done.
#6
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I am waiting for the mainline, mass-market automakers, including VW, BMW, Mercedes-Benz and GM, to step up and be serious about building and selling electric vehicles, and prove that it can be done on time, on budget, meeting all the technical and safety requirements, and be profitable. I have no doubt that it can be done.
#7
Lexus Test Driver
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I am usually a pessimist, but I am quite optimistic that they can do it by 2021-2023.
I do think that car manufactures should work with petrol stations on having 1 or 2 charging spots.
I do think that car manufactures should work with petrol stations on having 1 or 2 charging spots.
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#8
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Anybody see the Tesla event last night? The semi truck has 500 mile range, powertrain guaranteed for 1 million miles, and can do 0-60mph in 5 seconds (without a trailer). On top of that, they launched a new roadster which will have top speed of 250mph and do 0-60 in 1.9 seconds and be the fastest production car ever made.
Tesla restored power at a children's hospital in Puerto Rico after the hurricane. They flipped a switch in cars in FL to automatically extend the range of those vehicles to make evacuating the state easier. This is how you build a brand, build loyalty, drive innovation. I don't see GM as a threat.
Tesla restored power at a children's hospital in Puerto Rico after the hurricane. They flipped a switch in cars in FL to automatically extend the range of those vehicles to make evacuating the state easier. This is how you build a brand, build loyalty, drive innovation. I don't see GM as a threat.
#9
Lexus Champion
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Very impressive semi and roadster announcements from Tesla. Goes to show you Musk can really upset the apple cart every time with his ideas. The big "if" here is, does Tesla really need these distractions at a time when they're not delivering on their Model 3 production targets?
So far they've said that 5000 Model 3 cars would roll off the assembly line at Fremont by the end of December, and they're not even close to that. Tesla now says it won't meet that goal until March 2018, which leaves buyers who put down deposits on the 3 waiting months and months for their cars. The other issue is fit/finish with at least one Wall Street analyst and Model S owner saying that his preview of a 3 showed some problems with panel gaps, alignment and trim pieces.
The good news is that the Model 3 gets really good reviews for its driving characteristics and of course its acceleration ability. The key is to get the cars into owners hands and that is one thing that GM can do with its massive production capacity.
So far they've said that 5000 Model 3 cars would roll off the assembly line at Fremont by the end of December, and they're not even close to that. Tesla now says it won't meet that goal until March 2018, which leaves buyers who put down deposits on the 3 waiting months and months for their cars. The other issue is fit/finish with at least one Wall Street analyst and Model S owner saying that his preview of a 3 showed some problems with panel gaps, alignment and trim pieces.
The good news is that the Model 3 gets really good reviews for its driving characteristics and of course its acceleration ability. The key is to get the cars into owners hands and that is one thing that GM can do with its massive production capacity.
#11
Lexus Test Driver
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This is funny. Tesla benches 800lbs then GM matches them only for Tesla to throw another 400 lbs on there... benches it leaves and smiles. The big three are in a fight and have no answers for countering Tesla. Yet. Don't get me wrong they aren't dummies in those corporate ivory towers and have boat loads of cash to throw at this but they are definitely playing catch up choking on his wake.
That presentation Tesla did was impressive. A game changer for the Freight industry and Hypercars. Imagine a battery powered train?
That presentation Tesla did was impressive. A game changer for the Freight industry and Hypercars. Imagine a battery powered train?
#13
Lexus Test Driver
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One of the worlds largest gas station / convince store chains in the world Couche Tard or more known as Circle K, is testing something like that out in Norway. I hope it takes off and Couche Tard can roll it out to its 12,000+ locations across the globe.
If you want to read more: http://www.detroitnews.com/story/bus...ger/107688158/
If you want to read more: http://www.detroitnews.com/story/bus...ger/107688158/
Last edited by JessePS; 11-20-17 at 05:09 PM.
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