Features
16 Nov 21

GM readies expansion through multi-billion dollar investments

US automaker General Motors seeks to double its annual revenue and expand margins to some 14% by 2030, and this is seen being fueled by its transition to electric vehicles (EV), connected services, and others.

“We expect revenue to double by 2030 while also expanding our margins. We will achieve this by growing our core business of designing, building, and selling world-class internal combustion engine (ICE) vehicles as well as electric and autonomous models,” FutureCar reported Executive VP and CFO Paul Jacobson (pictured left) as saying.

2025 onward

Besides increasing investments in EVs with autonomous capabilities to US$35 billion through 2025, GM is expecting to increase investments in EV charging infrastructure to nearly US$750 million by the same time. The latter is part of the company’s Ultium Charge 360 charge network in the US and Canada to be used at homes, the workplace, and for public charging.

Overall, EV launches and connectivity projects are expected to increase significantly between 2025 and 2030, and GM sees this driving more than $80 billion in new and incremental revenue during the period, the report said.

GM 2030 Targets

  • Double its annual revenue to US$280 billion from the US$140 billion average
  • Increase its software and new businesses projects by 50%.
  • Expand margins to some 14% from 12%
  • Reach OnStar annual revenue of US$6 billion
  • Increase the number of connected vehicles to 30 million from 16 million
  • Aim to reach US$90 billion in EV revenue from less than US$10 billion seen today.

Meanwhile, GM expects US$50 billion in annual revenue from autonomous mobility and some US$20-25 billion in revenue per year from software and other services. The company also sees a potential to reach US$10 billion in annual revenue through its logistics business BrightDrop.

Remember that maintaining vehicle margins is key, especially in the face of electrification. Although GM’s current model lineup is led by highly profitable, full-size ICE pickups and SUVs, the automaker's battery-powered models are unlikely to generate the same type of margins for now and this is largely due to the high cost of EV batteries.

Although battery prices have dropped significantly in the last decade, the industry average price of $137 per kilowatt hour is still above the US$100 threshold which is said to make EVs competitive with ICE vehicles. Prices are expected to drop below US$100 by 2025 and even below $70 by 2030.   

Among the EVs that GM intends to launch in the next few years are:

  • Cadillac Lyriq
  • Hummer EV
  • Chevy Silverado pickup 
  • Prolgue SUV (in partnership with Honda Motor Co.) 
  • EV600 full-size e-van
  • EV410 compact e-van


2023 Cadillac Lyriq (copyright: Cadillac)

Other revenue streams

GM’s Onstar, launched in 1996, is a trend setting connectivity platform with more than 16 million connected vehicles and its success is partially due to the Onstar Insurance business. Instead of vehicle owners paying for third party insurance, GM can offer personalized insurance policies based on driving behavior through data collected from its connected vehicles.

Another revenue stream for GM its its autonomous ride-hailing business with its self-driving division Cruise. It involves upfitting a fleet of Chevy Bolt EVs to be self-driving and used in the commercial division of Cruise. Initially launched in San Francisco, the service is now being scaled to other cities.

As you can see, General Motors is gearing up for significant changes in the short to mid-term future and much of it is related to electrification and connectivity. For more on the latter, download and see the full results of the 2021 Global Fleet Survey on Connectivity by clicking here

Top photo of GM headquarters in Detroit, Michigan (copyright: Shutterstock)
Photo of GM CFO Paul Jacobson (copyright: GM Authority)

Authored by: Daniel Bland