Summary

  • General Motors Company is an American multinational automotive company establish back in 1908 by William "Billy" Durant.  
  • General Motors has a captive financial services arm namely General Motors Financial Company, Inc. It was established in 1992 as AmeriCredit Corp, acquired by GM in 2010 and renamed to the current name. 
  • The two main segments of General Motors - GM North America (GMNA) and GM International (GMI) develops, manufactures and/or markets under the brand name Buick, Cadillac, Chevrolet and GMC. 
  • The business segments that the company is now heavily investing into are electric vehicles (EVs), BrightDrop, OnStar, Super Cruise and Ultra Cruise, Ultifi, Cruise, and HYDROTEC. 
  • General Motors has reported a revenue of $43,108 million for the fourth quarter of 2022, up 28.4% from $33,584 million during the same period a year earlier. Net income of the company for the periods are $1,999 million and $1,741 million, respectively - up by 14.8%. Earnings per share (EPS) for the quarter is $1.39, up from $1.16. 
  • For the year ended December 31, 2022, General Motors has reported total sales of $156,735 million, up from $127,004 million a year earlier. Net income for the year 2022 is $9,708 million, down from $9,945 million a year earlier.
  • General Motors said on February 1, 2023 that its board of directors declared a regular quarterly dividend of $0.09 per share ($0.36 annualized). 

Brief Company Overview

GM motors logoGeneral Motors Company (NYSE:GM) is an American multinational automotive company incorporated as a Delaware corporation in 2009. The company is headquartered in Detroit, Michigan. General Motors go public in 2010 selling its shares for $23.1 billion - the biggest IPO of in the world then. The company employs over 155,000 worldwide and serves six continents. GM designs, builds and sells trucks, crossovers, cars and automobile parts and provide software-enabled services and subscriptions worldwide. The company operates through two segments - GM North America (GMNA) and GM International (GMI). The brands of these segments are Buick, Cadillac, Chevrolet and GMC. The company has equity ownership stakes in entities especially in China that use the brand names Baojun, Buick, Cadillac, Chevrolet and Wuling. The company has another segment named Cruise, which is responsible for the development and commercialization of autonomous vehicle technology. 

General Motors was founded in 1908 by William "Billy" Durant, who had started out as a manufacturer of horse-drawn vehicles. GM initially only owned the Buick Motor Company but later acquired more than 20 other companies including Oldsmobile, Cadillac, Oakland – today known as Pontiac – Germany's Opel, Chevrolet and Vauxhall.1 Wholesale vehicles sales of the company in 2022 is 3,579,000, up from 2,859,000 in 2021. 

General motors cover photo

Mary Barra is the Chairperson & CEO of General Motors. Net income of the company for the year of 2022 is $9.9 billion, down from $10.0 billion a year before. Return on Equity of the company for the year ended on December 31, 2022 is 14.9%, down from 17.7% a year earlier. Earnings per share (EPS) for 2022 is $6.17, down from $6.78 a year earlier. 

General Motors Financial Company, Inc.

General Motors has a captive financial services arm namely General Motors Financial Company, Inc. It was established in 1992 as AmeriCredit Corp, acquired by GM in 2010 and renamed to the current name. The company is a global provider of auto finance, with operations in the United States, Latin America, Canada, Europe, and China. 

GM financial company inc.GM Financial provides retail loan and lease lending across the credit spectrum to support vehicle sales. Additionally, GM Financial offers commercial lending products to dealers including floorplan financing, which is lending to finance new and used vehicle inventory; and dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, or to purchase and/or finance dealership real estate. Other commercial lending products include financing for parts and accessories, dealer fleets and storage centers. In North America, GM Financial offers a sub-prime lending program. The program is primarily offered to consumers with a FICO score or its equivalent of less than 620 who have limited access to automobile financing through banks and credit unions and is expected to sustain a higher level of credit losses than prime lending.

Recent Developments

  • In 2021, General Motors production at GM’s Factory ZERO Detroit-Hamtramck Assembly Center (Factory ZERO), which was re-tooled into a fully dedicated EV facility to produce the GMC HUMMER EV, the upcoming Cruise Origin, the Chevrolet Silverado EV and the GMC Sierra EV. 
  • In January 2022, GM announced that they will convert the assembly plant in Orion Township, Michigan for fully dedicated EV production, including the Chevrolet Silverado EV and the GMC Sierra EV.
  • General Motors will invest $650mn in a US lithium mine, a record investment by a carmaker to secure the raw materials used in electric vehicle batteries.2 
  • General Motors will not have to lower the price of the Cadillac Lyriq, which is now eligible for the new federal EV tax credit of $7,500.3 
  • General Motors said on February 1, 2023 that its board of directors declared a regular quarterly dividend of $0.09 per share ($0.36 annualized).4 
  • Japan’s Honda Motor Co said it will start producing a new hydrogen fuel cell system jointly developed with General Motors Co this year and gradually step up sales this decade, in a bid to expand its hydrogen business.5 

Financial Highlights

Q4'22 Highlights

General Motors has reported a revenue of $43,108 million for the fourth quarter of 2022, up 28.4% from $33,584 million during the same period a year earlier. Net income of the company for the periods are $1,999 million and $1,741 million, respectively - up by 14.8%. Earnings per share (EPS) for the quarter is $1.39, up from $1.16. 

Annual Performance Highlights

For the year ended December 31, 2022, General Motors has reported total sales of $156,735 million, up from $127,004 million a year earlier. Operating income of the company is $10,315 million and $9,324 million, respectively, for the years. Net income for the year 2022 is $9,708 million, down from $9,945 million a year earlier. In 2021, the company had earned $3,041 million as interest income and other non-operating income, which this income in 2022 is $1,432, down by almost 100%. 

Cash and cash equivalents of the company at the end of 2022 stand at $19,153 million, slightly down from $20,067 million a year earlier. Total current assets of the company on December 31, 2022 is $100,451 million, up from $82,103 million. The increase is due to the increases in accounts receivables, notes receivables, and inventories. Total assets of the company is reported $264,037 million on December 31, 2022, up from $244,718 million. Total current liabilities of the company is $91,173 million and $74,408 million for the years, respectively. 

Net cash provided by operating activities during 2022 is $16,043 million, up from $15,188 million. Net cash used in investing activities in 2022 is $17,882 million, and in 2021 is $16,355 million. Net cash provided by financing activities during 2022 is $383 million, down from $1,744 million a year earlier. 

Business Overview

The two main segments of General Motors - GM North America (GMNA) and GM International (GMI) develops, manufactures and/or markets under the brand name Buick, Cadillac, Chevrolet and GMC. Vision of the company is a world with zero crashes, zero emissions and zero congestion, which guides their growth-focused strategy to invest in electric vehicles (EVs) and autonomous vehicles (AVs), software-enabled services and subscriptions and new business opportunities. The business segments that the company is now heavily investing into are electric vehicles (EVs), BrightDrop, OnStar, Super Cruise and Ultra Cruise, Ultifi, Cruise, and HYDROTEC. 

General motors headquarters

Electric Vehicles (EVs)

General Motors plans to rapidly scale their capacity to build one million EVs in North America and more than two million EVs globally by the end of 2025. A key element in the EV strategy is Ultium, the dedicated electric vehicle propulsion architecture. This platform is flexible and will be leveraged across multiple brands and vehicle sizes, styles and drive configurations, allowing for quick response to customer preferences and a shorter design and development lead time compared to our ICE vehicles. First Ultium-based products of GM was launched in 2021 with the GMC HUMMER EV and BrightDrop Zevo 600, followed by the Cadillac LYRIQ in 2022. The company plans to leverage the versatility and flexibility of Ultium to expand their EV portfolio over a wide variety of segments and price points including the Chevrolet Equinox EV, the Chevrolet Blazer EV, the Chevrolet Silverado EV and the GMC Sierra EV, which are expected to be launched over 2023 and 2024.

general motors electric vehicles evs

To support mass market adoption of EVs, the company is working to ensure that the customers will have access to comprehensive charging solutions. For personal vehicles, this means strategically addressing charging needs at home, the workplace and in public locations, for which GM has committed to invest nearly $750 million through 2025. For example, in November 2021, GM announced a collaboration with EVgo to install 3,250 DC fast charging stalls in more than 50 U.S. metropolitan markets. In July 2022, the company announced a collaboration with EVgo and Pilot Company targeting the installation of a coast-to-coast network of 2,000 DC fast charging stalls at 50-mile intervals across the U.S., enabling long-distance corridor charging. This network will be open to all EV brands at up to 500 Pilot and Flying J travel centers. For fleet vehicles, GM is developing turnkey charging solutions and fleet and facility energy management services. In addition, the company has announced collaborative work with several charge network operators to filter real-time data on their respective networks and charge station health into a holistic charging approach that integrates charging networks, GM vehicle mobile apps and other products and services to simplify the overall charging experience for GM EV owners in North America.

BrightDrop

BrightDrop is developing a suite of solutions, including the BrightDrop Zevo all-electric delivery vans, BrightDrop Trace electrically propelled smart containers and the BrightDrop Core software platform, which is focused on helping companies better visualize and optimize their fleet operations. It is expected that these solutions will help the world's largest delivery and logistics companies do more with less, while helping to improve operating efficiencies, eliminate operating emissions and reduce congestion. BrightDrop's Zevo 600 and Zevo 400 full-scale production facility, CAMI Assembly, launched in late 2022, with start of regular production (SORP) targeted for the first quarter of 2023. BrightDrop delivered the first Zevo 600s to FedEx Express, the launch customer of GM, and generated reservations and expressions of interest for Zevo vans from several major companies, including DHL Express Canada, Walmart and Merchants Fleet. 

OnStar and Vehicle Connectivity

OnStar offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, roadside assistance, crisis assist, stolen vehicle assistance and turn-by-turn navigation. Additionally, GM offers OnStar Guardian in select markets, a mobile app that allows customers to access key OnStar safety and security services from their compatible mobile device. Fleet customers in some markets can leverage OnStar Vehicle Insights, GM's telematics solution across their entire fleet, regardless of vehicle make or model. The company also offers a variety of connected services in certain markets, including mobile apps for owners to remotely control certain vehicle features and EV owners to locate charging stations, on-demand vehicle diagnostics, GM Smart Driver, Amazon Alexa in-vehicle voice, Google's Voice Assistant, navigation and app ecosystem, connected navigation, SiriusXM with 360L, 4G LTE wireless connectivity and 5G connectivity which will be available in select model year 2024 vehicles.

Super Cruise and Ultra Cruise

General Motors offers Super Cruise, the industry's first true hands-free driver assistance technology that enables drivers of eligible vehicles to travel hands-free on more than 400,000 miles of compatible roads in the U.S. and Canada. The company will make Super Cruise available on 22 vehicles in North America and China by the end of 2023. Ultra Cruise is a significant next step in advanced driver assistance technology, designed to ultimately enable a hands-free driving experience in 95 percent of all driving scenarios, that will debut on the Cadillac CELESTIQ. 

Ultifi

Ultifi is an end-to-end software platform that will provide customers with software-defined features, apps and services over-the-air starting in 2023. Ultifi and the apps it enables will empower customers to update their ownership experiences with desirable features such as services and subscriptions, vehicle performance, Super Cruise and, when launched, Ultra Cruise, safety and security features, climate and comfort options, personal themes and EV ownership experience elements.

Cruise

General motors cruise

General Motors and Cruise are pursuing what is believed to be the most comprehensive path to autonomous mobility in the industry by the pursuers. In September 2021, Cruise began operating a driverless ride hail service in San Francisco, California, and in June 2022, began charging the public for driverless rides. Cruise continues to make regulatory progress in California. In December 2022, Cruise received regulatory approval to expand its operational design domain in California. Cruise is also seeking regulatory approval to add the Cruise Origin to its driverless test permit. Additionally, in September 2022, Cruise acquired regulatory permits to operate driverless ride hail services in Phoenix, Arizona and began pursuing ride hail operations in Austin, Texas. Given the potential of all-electric self-driving vehicles to help save lives, reshape cities and reduce emissions, the goal of Cruise is to deliver its self-driving services as soon as possible. 

HYDROTEC

General Motors is developing hydrogen fuel cell applications across transportation types and industries, including mobile power generation, class 7/8 truck, locomotive and aerospace. The development of HYDROTEC technology is related to the long-term commitment of General Motors toward a world with zero emissions. Hydrogen fuel cells will give the users additional benefits from the ability to refuel quickly, an extended range, suitability for heavier payloads and central refueling of large fleets. GM and Honda, through long-term strategic alliance are to collaborate in research and advanced engineering efforts, in developing and commercializing fuel cell systems. In 2021, GM announced a number of commercial relationships and, in November 2022, the company announced a joint development agreement with Nel Hydrogen US to help enable cost competitive renewable hydrogen production.

US Operations

General Motors has its main operation in the US. The company employs 97,012 people in the country. It has 120 facilities, 4,034 dealers, and 5,709 suppliers in the US. Investment of the company in the US stands at $36.8 billion. The facilities in the US has delivered 2,274,088 vehicles so far. 

Overall, GM has 120 facilities across the U.S., including 12 assembly plants; 24 stamping, propulsion, component and battery plants; 25 parts distribution centers; and two engineering campuses. Additionally, GM has multiple office locations that include IT centers, call centers and GM Financial service centers. 

Risks

  • High competition and constant threats of losing market share. The scale of competition also forces the company to keep innovating new products. 
  • Timely sourcing funds for the introduction of new products. 
  • Dependence of long-term strategy on the broadening of EVs portfolio. 
  • Risks associated with climate change, including increased regulation of GHG emissions, changing consumer preferences and other risks related to our transition to EVs and the potential increased impacts of severe weather events on our operations and infrastructure.
  • Risks related to global downturn in total automobile sales. 
  • Inflationary pressures and persistently high prices and uncertain availability of commodities, raw materials or other inputs. 
  • Business of GM in China subjects them to unique operational, competitive and regulatory risks.
  • Additional risks related to international footprints of the company.
  •  Dependence on third-party suppliers. 

Products

  • Chevrolet 
  • Buick
  • GMC
  • Cadillac

Pipeline

  • Electric Vehicles (EV)
  • Chevrolet Equinox EV
  • Chevrolet Blazer EV
  • Chevrolet Silverado EV
  • GMC Sierra EV
  • Software-enabled services and subscriptions - OnStar
  • Advanced driver-assistance systems (ADAS) - Super Cruise
  • Next generation ADAS - Ultra Cruise and Ultifi. 
  • HYDROTEC
  • BrightDrop's Zevo 600
  • Zevo 400

Company History6

William C. Durant founded General Motors in 1908. Originally intended as a holding company for the Buick Car Company, within two years Durant brought some of the biggest names in the automotive industry, including Oldsmobile, Cadillac, Oakland (later known as Pontiac) and the predecessors of GMC Truck.

In 1910, Durant lost control of the company to a banker’s trust as a result of the $15 million debt incurred through its acquisitions. Durant left the firm and established the Chevrolet Motor Company in 1911, but after a stock buy-back campaign, he returned to lead GM in 1916, bringing Chevrolet into the fold. Over the next decade, GM would continue to grow, acquiring more companies.

general motors history

During World War I, GM produced war materiel. 90 percent of GM’s truck production between 1917 and 1919 was for the war. Durant’s leadership ended in 1920 after another bank buyout. In the 1920s GM underwent more business restructuring headed by Alfred P. Sloan, including moving its headquarters from Flint, Michigan to the newly built GM Building in Detroit. Sloan balanced individual and centralized management and under his control GM surpassed Ford in sales by the late 1920s. 

After World War II, GM continued to grow, becoming the first American corporation to pay more than $1 billion in taxes. In addition, GM was one of the largest employers in the world. Its iconic Corvette was introduced in 1953. Throughout the next three decades, GM maintained its world leadership in revenue and market share, though it suffered some setbacks in terms of quality problems and vehicle defects.

Under the leadership of Roger B. Smith in the 1980s, GM began to experience a decline. Foreign automakers, led by Toyota and Honda, were capturing some of GM’s market share and the unwieldy GM bureaucracy was often slow to respond to changes in consumer demands. In the early 1990s, Jack Smith became GM chairman and undertook a radical restructuring. Through a reduction in the work force, deep cost-cutting and the elimination of some of GM’s most noted product lines, including Oldsmobile, the company found itself regaining market share.

The 21st century has tested GM’s strength as the world’s largest automaker, Toyota at times capturing that coveted title. CEO Rick Wagoner attempted to lessen its future health care and pension liabilities and increase its stock value but could not stop the financial bleeding. On June 1, 2009, the company declared bankruptcy and received assistance from the federal government, emerging from bankruptcy in under 40 days as General Motors Company. One of the largest bankruptcy filings in U.S. history, the bailout saved over a million jobs, at a cost to the U.S. government of $11 to $12 billion dollars.

On December 9, 2013 the U.S. government got out of the auto business, selling its remaining shares of GM stock. One day later, GM became the first automaker to appoint a female CEO. Mary Barra was elected chairman of the board in 2016. 

  1. ^ https://www.theguardian.com/business/2009/apr/30/general-motors-gm-history
  2. ^ https://www.ft.com/content/84840136-d46f-42ff-8b47-3852cb6d8634
  3. ^ https://www.thestreet.com/technology/general-motors-wins-a-big-ev-battle
  4. ^ https://www.nasdaq.com/articles/general-motors-gm-declares-$0.09-dividend
  5. ^ https://www.cnbctv18.com/auto/honda-to-produce-new-hydrogen-fuel-cell-system-with-general-motors-15835321.htm
  6. ^ The whole story is sourced from - https://detroithistorical.org/learn/encyclopedia-of-detroit/general-motors
Tags: US:GM USA
Created by Md. Touhidul Islam on 2023/02/08 05:11
     
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