Recently, General Motors held an investor conference in New York and officially claimed that it will achieve profitability in the electric vehicle business in North America by 2025.
The official milestone is reported to get US$ 27 billion to US$ 35 billion in the next five years. During the big-budget investment phase, keeping costs in check and trying to be profitable is a must for the automaker.
With U.S. dealers the new digital retail platform launched by the company ultimately reduced the company’s single-vehicle cost by about $ 2,000.
The electric vehicle business will be profitable in North America by 2025
The company has also launched a new digital retail platform with U.S. dealers, which has reduced the company’s single-vehicle cost by about $ 2,000. The company affirms reached a binding procurement agreement for all battery production raw materials required for the production target of electric vehicles in 2025, under the main concern of battery supply. Due to this, they will be able to make certain capacity demand through strategic supply agreements and increased investment in recycling.
At the same time, General Motors elevate its financial target for 2022. The company regards as likely full-year 2022 adjusted free cash flow from the automotive business to increase to a range of $ 10 billion to $ 11 billion, up from $ 7 billion to $ 9 billion previously; Adjusted from $ 13 billion to $15 billion to a range of $ 13.5 billion to $ 14.5 billion.
Paul Jacobson, Executive Vice President and Chief Financial Officer of General Motors, convinced:
” We have laid the foundation for the rapid promotion of large-scale popularization of electric vehicles, helping the company achieve profitability at the stage of high investment. In the future, the Autoneng electric vehicle platform And battery technology will simultaneously achieve greater performance and lower cost. We will drive the company to achieve revenue and profit margin goals by 2030. ”
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