GM Targets Dramatic Revenue and Margin Increases by 2030
Photo: Steve Fecht for GM
General Motors has big plans for the decade ahead — including an ambitious strategy to double its revenue and boost its margins by 2030.
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“GM has changed the world before and we’re doing it again,” GM Chair and CEO Mary Barra said at a recent investors’ meeting. She noted that she’s “never been more confident or excited about the opportunities ahead.”
GM’s leaders believe the automaker possesses all the elements for dramatic business growth. Their goals include doubling revenues from their current five-year annual average of $140 billion, increasing margins from 12 percent to 14 percent, and maintaining a strong balance sheet while continuing to fund major investments in the company.
According to GM Chief Financial Officer Paul Jacobson, the automaker plans to reach these goals by “growing our core business of designing, building, and selling world-class ICE, electric, and autonomous vehicles; growing software and services with high margins; and entering and commercializing new businesses.”
EV technology
A huge part of GM’s strategy involves expanding revenues for its regular and autonomous electric vehicles and its Ultium EV platform. As the automaker brings dozens of new EVs to the market, it’s aiming to increase annual revenue in that area from a projected $10 billion in 2023 all the way up to $90 billion in 2030. Along the way, the company expects increased margins as EV production scales and battery costs go down.
Photo: GM
Software and services
GM is also expecting billions in new revenue from software and services, including OnStar connected services, OnStar Insurance, and the comprehensive new Ultifi wireless software platform. And the company is poised to commercialize Cruise autonomous vehicle services to the tune of $50 billion a year.
New businesses
GM’s collection of 20 startup businesses should provide the company with even more streams of revenue in the coming decade. One such business is BrightDrop, which could bring in billions by providing advanced delivery vehicles and connected services for the commercial market.
For more information on GM business and financial moves, see our coverage of the automaker here at The News Wheel.
A longtime editor/writer and recently transplanted Hoosier, Caleb Cook lives in Xenia, Ohio. His favorite activities are reading and listening to music, although he occasionally emerges from the heap of books and vinyl records in his basement to stand blinking in the sunlight. Once fully acclimated to the outside world again, he can be observed hanging out with his wife, attempting a new recipe in the kitchen, attending movies, walking the dog, or wandering into a local brewery to inquire about what’s on tap. See more articles by Caleb.