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GM Aims to Increase Profits Through Selection and Concentration of Products and Markets (Part 2 of 2)

Electric Vehicles

GM is focusing on expanding its BEV lineup and plans to release 20 BEV models by 2023. Initially, the strategy was to introduce BEVs based on mass-produced models. The Chevrolet Bolt was released in 2016, its sales volume did not increase. In January 2019, GM announced it would change its BEV policy, naming the automaker’s luxury brand Cadillac as its core BEV marque. GM sees China as a major market for BEVs. The automaker plans to launch 10 new energy vehicles (NEVs) from 2016 to 2020 in the Asian nation. GM plans to launch the next-generation modular platform BEV3 for BEVs from 2021. The new platform is intended to be used for all brands by 2030. The company is also working with Honda to develop next-generation battery components.

Connected / V2X

GM has developed a next-generation in-vehicle digital platform. It will debut in the 2020 model of the Cadillac CT5. The new technology is planned to be installed in most GM vehicles by 2023. V2X will also be adopted by Cadillac’s mass-produced CUV by 2023, and will be introduced to the entire Cadillac lineup in the future.

Autonomous Driving / Mobility

GM intends to install Super Cruise, an automatic driving system limited to highways, in mass-produced vehicles by 2021. In addition, GM Cruise, a subsidiary of GM, has developed a self-driving vehicle, Cruise AV, which does not have an operating device. The Cruise AV was scheduled to be released in 2019, but its launch has been postponed. GM has embarked on a strategy to add mobility business to its profit structure. The company is combining car sharing with vehicles equipped with next-generation technologies, such as electrification and automated driving. GM has been developing a sharing service called “Maven” since 2016. As of May 2019, Maven was out of service in about half of the 17 North American cities where it was originally launched. It seems that GM intends to concentrate on markets where demand and growth potential can be expected.

GM: Electric Vehicle Strategy

Electric Vehicle Strategy

・GM is focusing on expanding its BEV lineup. In October 2017, the company announced plans to release 20 BEV models by 2023. – According to a GM executive, this plan was still in place as of January 2019. ・In January 2019, GM’s CEO Mary Barra changed the company’s previous policy and indicated that the luxury car brand Cadillac would become GM’s main BEV brand. – Initially, GM’s strategy was to introduce BEVs from mass-produced vehicles. In 2016, Chevrolet Bolt was released, but sales volume did not increase. ・In May 2019, the company announced plans to invest 300 million US dollars to produce a new small BEV under the Chevrolet brand at the Orion plant in Michigan, USA. – The plant will employ an additional 400 people. ・In September 2019, as part of a labor-management negotiation with UAW, the company announced a domestic investment plan of a total of 7 billion US dollars to introduce a BEV pickup truck and the latest battery system. – The company plans to invest in both core products such as pickup trucks and SUVs, and the latest drive systems for BEVs. – The company will invest in a plant in Michigan for BEV production and a plant in Ohio, USA for batteries. ・GM sees China as the main market for BEVs. – There are 10 NEV (new energy vehicle) models to be introduced from 2016 to 2020. – Production of Baojun E200 started in September 2018.

Promotion of BEVs

・In October 2018, GM proposed to the US government the introduction of the National Zero Emission Vehicle (NZEV) program that promotes the spread of zero-emission vehicles. – GM has set a goal of selling more than 7 million BEVs that can travel long distances in the US by 2030. – Compared to the conventional ZEV program, CO2 emissions can be reduced by 375 million tons from 2021 to 2030. ・In January 2019, GM partnered with three major BEV charging networks in the United States (EVgo, ChargePoint, Greenlots) to promote the spread of BEVs. – GM vehicle users can use more than 31,000 charging stations in the United States. – In the future, GM plans to build a system that can charge for charging with a smartphone app.

Next-generation BEV Platform & Battery Components

・The next-generation BEV platform “BEV3” will be launched in 2021. – It is a fully modular platform consisting of a flexible design drive unit and battery pack. Compatible with various vehicle shapes and drive systems, the battery capacity and layout can be adjusted according to user needs. – The aim is to shorten the time required for design and development. – It will initially be used by Cadillac brand models, and then by all other brands by 2030. ・GM collaborates with Honda to jointly develop next-generation battery components with high energy density, compactness and short charging time.
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