In the words of GM, ‘We just have to sell more batteries’

G.M. Hopes to Double Its Revenue by 2030 By Selling EV.s and Services * In 2015, General Motors LLC (GM) plans to sell EVs in 40 percent of all vehicle sales in the United…

In the words of GM, ‘We just have to sell more batteries’

G.M. Hopes to Double Its Revenue by 2030 By Selling EV.s and Services *

In 2015, General Motors LLC (GM) plans to sell EVs in 40 percent of all vehicle sales in the United States by the year 2020. This is 40 percent more than the current 20 percent. The automotive industry’s shift toward all-electric vehicles, where EVs are 60 percent of new vehicle sales, or Ford CEO Mark Fields, who spoke in May that all-electric vehicles would make up as much as 50 percent of the new car sales in 2030.

GM recently unveiled its third EV, the Chevrolet Bolt EV that it hopes will sell to 11 million sales of EVs in the United States by the year 2020. The vehicle had a launch price of $37,500 that can come down with a $7,500 federal tax credit and will be available for sale in 2019. “By selling the Bolt, which can run about 200 miles on a single charge, GM will be able to reduce the sticker price of EVs to a very competitive level,” Vincent Davenport, an analyst with LMC Automotive, told the BBC.

The Bolt will compete with Model 3s made by Tesla, which has had production issues but could sell hundreds of thousands of cars in the next few years.

Beyond the Bolt, GM will also push for EVs in Europe, where sales in 2015 increased by two percent and hybrids 5 percent. Part of the reason is that 75 percent of customers in Europe are wealthier, buying premium vehicles.

“If you could retrofit the existing infrastructure to run on electricity and import them from Germany, where the solar market is very strong, you’d need far fewer stations,” Davenport said.

How much does General Motors invest in its EVs? A $500 million investment for the 10-year Tesla Inc project to build a “gigafactory” to make lithium-ion batteries to power its electric cars, even though such funding for new EV technology is not common.

“We just have to sell more batteries,” Warren Buffett, Chairman and CEO of Berkshire Hathaway, said at the company’s annual meeting in May.

E-car Sales Road Map

“We’re building up our 3G (government policy technology) platform to see if the technology scales and other people will do this,” Mark Reuss, president of GM North America, told CNBC in June.

In the past year, as new vehicle sales have plunged in the United States, GM has doubled down on its investments to offer EVs, despite lower prices and sales of other cars that are gaining popularity, in addition to iEVs like the Chevy Bolt. The company recently announced that it will offer 30 electrified models by 2023 in North America, 14 of which will be battery electric cars. By the same year, GM will expand its “smart charging” network by almost 100 percent, the company said. Charging takes 45 minutes if you’re lucky and up to 60 hours with a plug-in hybrid.

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