A profitable business from 2025 according to General Motors

General Motors (GM) predicts that sales of its electric vehicles will reach at least $50 billion by 2025, and as a result, it hopes to become the leader in this market, which is currently dominated by Tesla. The company allows itself to do this: when it began to seriously address the segment of zero-emission cars, it took a gamble to develop 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 to the second phase, the promotion phase, which will reduce costs due to increased production volume.

Electric car jackpot for General Motors: Hertz orders 175,000 cars

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

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

Hertz has ordered 175,000 electric cars from the manufacturer

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

Certainly, General Motors management was reassured by the Hertz car rental company’s order of 175,000 electric vehicles by 2027 in early September. The order applies to various models of Chevrolet, Buick, GMC or Cadillac brands, from the small Chevrolet Bolt to future pickups and vans. The first deliveries are scheduled for next year.

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 faster than anywhere else in the world “According to Automobile Magazine, General Motors ” The Blazer, Equinox and Hummer may introduce a light version of the EV “. The manufacturer left the European market in 2017.

Should excessively heavy electric vehicles be excluded from assistance systems?

Bonuses and other incentives for the purchase of electric cars could be aimed at lighter cars and more modest households, the prime minister’s French Strategy agency said in a note on Thursday. To respect the climate goals, the government can define a new eligibility scale for the bonus” not by the price of the car, but by its size or weight, or even by combining these three parameters “. In particular, it can be send a stimulating signal in favor of buying smaller and lighter vehicles – which allows to minimize the carbon impact compared to a thermal vehicle – limiting the increase in public costs associated with the environmental bonus. “. In addition, the weight penalty, which depends on CO2 emissions and is applied starting from 1.8 tons, should apply not only to polluting vehicles, but also to electric cars. The scale of the penalty will be raised already in 2023, its maximum amount will be a large Porsche SUV or a muscular BMW sedan (emitting more than 225 grams of CO2/km) will be increased to €50,000.Low-emission cars sold today for less than €47,000 are entitled to a bonus of 27% of the vehicle’s purchase price or €6,000 Plug-in hybrids are subsidized up to 1,000 euros.

(via AFP)