GM will announce boosted spending plans for EVs on Thursday-sources

In this news, we discuss the GM will announce boosted spending plans for EVs on Thursday-sources.

(Reuters) – General Motors Co will roll out details of an expanded and accelerated electric vehicle strategy on Thursday in a bid to convince investors that it can be a serious competitor to Tesla Inc, people familiar with the plans said.

GM chief executive Mary Barra, who is due to speak at a conference hosted by Barclays, is expected to say the automaker is ready to spend more on electric models by 2025 than the previously described $ 20 billion , the sources said.

Supplier sources said previous plans to make the Cadillac brand fully electric by 2030 were accelerated, possibly until 2025, and other sources said the acceleration would be repeated in other brands. and in segments such as commercial vans.

Asked about Thursday’s appearance, a GM spokeswoman called for the increase in speculative spending and declined to give details.

The Detroit automaker is also expected to discuss a new timeline for many electric vehicles to follow those already identified, such as the GMC Hummer EV pickup and Cadillac Lyriq crossover, people familiar with the plans have said.

Lyriq is expected to go into production in late 2022, but GM officials have been stung by criticism that the automaker was putting the vehicle on the market too late, a source said.

“The pull-ahead of programs is real and the organization is really stepping up to accelerate product development,” the source said.

Barra and other GM executives have signaled the automaker’s plans to accelerate electric vehicles. She said earlier this month that GM would increase capital spending over the next three years to accelerate the development of electric vehicles and was discussing partnerships with other automakers to develop more vehicles using battery technology. GM.

Last week, a GM executive said the company had brought forward the rollout of two “major” EV programs, and GM officials touted the faster 18-month development time for the Hummer truck.

Tesla’s skyrocketing market capitalization and increasing pressure from regulators to phase out carbon-emitting engines have pushed established automakers to respond to investors who see their internal combustion lineups as outdated and doomed to fail. long-term failure.

A staple of GM’s presentation to investors was its new Ultium batteries, which it says will deliver an electric range of 400 miles or more on a single charge. He’s building a battery factory with Korean battery maker LG Chem in northeast Ohio.

GM has announced plans to increase annual capital spending until 2023 at least above the previously described rate of $ 7 billion to fund its new timeline for electric vehicles.

Reporting by Ben Klayman in Detroit and David Shepardson in Washington; Editing by Sonya Hepinstall

Original © Thomson Reuters Corporation

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