(Bloomberg) — General Motors Co. made a case that it has a strategy to reverse its decline in China and chase after Tesla Inc.’s lead in selling electric vehicles in the world’s largest market.


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The Detroit-based carmaker outlined its plan to roll out new EVs, gas-burning sport-utility vehicles and intelligent driving and connectivity in China on Wednesday, in virtual presentations from executives including Chief Executive Officer Mary Barra and President of GM China Julian Blissett.

GM is making the pitch to convince investors that its strategy of bringing electric models to market globally will make it a credible competitor to Tesla. GM also is facing some pressure to spin off its plug-in unit as a separate business after Wall Street lavished billions on EV startups in recent months.

“We are investing heavily in the technology and innovation that will help us realize our vision,” Barra said in a video on the company’s investor web page. “From 2020 to 2025, we will allocate more than $20 billion in capital and engineering resources to our EV and AV programs.”

Barra’s presentation follows the reveal of the Cadillac Lyriq electric SUV earlier this month and the unveiling of its Ultium electric-vehicle battery in March.

While GM’s sales have showed resilience in China amid the coronavirus pandemic, long-term growth prospects depend on its new models — including electric cars — attracting buyers. Demand for EVs is accelerating, and Tesla has grabbed an early lead in Asia’s biggest economy after starting output from its new multibillion-dollar Shanghai plant.

a screenshot of a cell phone: Gassed

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China’s car market is recovering from a two-year slump, helped by the reopening of showrooms, the receding of Covid-19 and an improving economy. Electric-vehicle sales growth eclipsed gas guzzlers last month following a yearlong lull kicked off by the government scaling back EV subsidies.

GM has said it plans to sell more than 20 EV models by around 2023. The company’s battery pack can host compact cars, large pickup trucks and everything in between, said GM President Mark Reuss in the video.

“This is a huge opportunity for us, the biggest opportunity any of us have ever seen for this company,” Reuss said. “It represents a chance to reinvent the company and reset our brands. It will change this company and people’s perceptions of it forever.”

GM Takes Fight to Tesla With New Battery to Power EV Future

On Wednesday in Shanghai, GM gave more information about its new global EV platform, its Ultium battery system and its next-generation EVs for China.

Highlights include:

More than 40{d93457022679712214ff8a8035fa266341f9634f2c93d5e609b1bbb089e8c446} of GM’s new launches in China in the next five years will be electrified models. They’ll be made in China, with almost all parts coming from local suppliersGM will continue to roll out and upgrade its Super Cruise driver-assistance system, to be featured on Cadillac’s lineup by mid-decade and expanded to Buick and Chevrolet modelsThe Cadillac Lyriq luxury all electric SUV will be available in China, aimed at wealthy customers. It will feature a glass roof and more-spacious interior because of a new battery architectureFor 2021, an enhanced version of Super Cruise will be available in China and the U.S. with features including lane change on demand, as well as richer map data. GM will offer Super Cruise on 20 vehicles globally by 2023GM also will accelerate the development of China-specific solutions for intelligent connected vehicles, with its first global vehicle-to-everything (V2X) program set for launch this year on the Buick GL8 vanAlmost all GM vehicles in China will be connected via flexible platforms; in 2022, 5G will be available on all new Cadillac models and most Chevrolet and Buick vehiclesThe Ultium battery can go as far as 400 miles on a charge with battery sizes between 50 and 200 kilowatt hours. The Tesla Model 3 has a long-range battery with 72.5 kWh of usable battery power.

“GM has unmatched scale in leveraging big data and using our insights to deliver higher quality, more innovative and data-informed services to our customers,” Blissett said. “In the near future, we will make connectivity a standard feature in nearly all our global brand vehicles launched in China.”

GM’s core business — selling gasoline-powered sport utility vehicles and pickup trucks — is generating cash but is viewed as being in long-term decline and is less exciting to investors than the company’s electric-car plans, Deutsche Bank AG analyst Emmanuel Rosner said in a note this week.

While GM shares are down about 18{d93457022679712214ff8a8035fa266341f9634f2c93d5e609b1bbb089e8c446} this year, makers of battery-powered vehicles have hit new heights. Shares of Tesla have soared to record levels, making the company the world’s most-valuable carmaker. Startups Nikola Corp. and Workhorse Group Inc. also have seen gains.

Meanwhile, Chinese EV contenders are accelerating their fundraising plans. Li Auto Inc. raised $1.1 billion in late July, and Xpeng Motors has plans for a $1 billion IPO. WM Motor Technology Co., meanwhile, is weighing an initial stock sale in Shanghai as soon as this year, people familiar with the matter said, and Hozon New Energy Automobile Co. is targeting a listing in the same city possibly next year.

(Adds Barra quote in fourth paragraph and other details throughout)

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