a profitable business by 2025, according to General Motors

General Motors (GM) predicts that sales of its electric vehicles will generate at least $50 billion in revenue by 2025 and hopes to eventually become the leader in this market, currently dominated by Tesla. The company is giving itself the means to do so: when it began to turn in earnest to the segment of zero-emission vehicles, it bet on developing its own platform of electric batteries that can be adapted to several types of vehicles, called Ultimate . The American manufacturer is now ready to move on to a second phase, of ramp-up, which will reduce costs thanks to the increase in produced volumes.

Jackpot for General Motors in the electric car: Hertz orders 175,000 vehicles

At the same time, GM plans to reduce the cost of its batteries by improving the chemical processes involved and the structure of the vehicles, as well as by reorganizing its supply chain. For example, the group announced on Thursday that it had signed a long-term deal with mining giant Vale to buy Canadian nickel sulfate.

The company is also counting on the development of software as well as the new tax credits that the US government has given to electric cars. GM also plans to launch a new sales platform in partnership with dealers, which should reduce the price of a vehicle by about $2,000. In addition, the group has already announced that it wants to invest a total of 35 billion dollars by 2025 for electric and autonomous vehicles.

Hertz has just ordered 175,000 electric cars from the manufacturer

Given supply chain issues and the global macro economy, GM could easily have been more cautious about its targets, battery production and overall demand for the coming years.noted Dan Ives of the American investment company Wedbush Securities. Instead, Barra and his lieutenants pulled out all the stops by being very confident about the long-term goals for electric cars and repeating their 2030 goals thanks to the strength of the Ultium platform. »

General Motors’ management was undoubtedly reassured by the order from the car rental company Hertz in early September for 175,000 electric cars by 2027. An order that concerns various models of the brands Chevrolet, Buick, GMC or Cadillac, ranging from the small Chevrolet Bolt to future pick-ups and vans. The first deliveries are planned for next year.

A return to Europe?

These investments in electricity could encourage a return to Europe. As the band said in early November, ” European customers are switching to electric cars at a faster pace than anywhere else in the world “. According to Automobile Magazine, General Motors ” could introduce the Blazer, Equinox and why not a light version of the Hummer EV “. The manufacturer had left the European market in 2017.

Should excessively heavy electric cars be excluded from assistance systems?

For the organization France Strategy linked to the prime minister, which published a memo on Thursday, bonuses and other incentives for the purchase of electric cars could be better targeted at lighter vehicles and more modest households. In order to comply with the climate objectives, the government could define a new eligibility scale for the bonus ” by the size or weight of the vehicle rather than by its price, or even by combining these three parameters “. This could especially send an incentive signal in favor of the purchase of smaller and lighter vehicles — which make it possible to minimize the carbon impact compared to a thermal vehicle — and at the same time limit the increase in public expenditure associated with the ecological bonus “. In addition, the weight penalty, which depends on CO2 emissions and applies from 1.8 tons, should not only be tightened for polluting vehicles, but also extended to electric cars. The scope of the penalty will already be raised in 2023, and its maximum amount will increase to 50,000 euros for a large Porsche SUV or a muscular BMW sedan (which emits more than 225 grams of CO2/km).Today, low-emission cars sold for less than 47,000 euros are eligible for a bonus representing up to 27% of the vehicle’s purchase price or €6,000 Plug-in hybrids are subsidized up to €1,000.

(With AFP)