Business Maverick: GM Sets Target for Doubled Revenue, Fatter Margins by 2030

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General Motors Co. plans to double its revenue by 2030 as the automaker expands its electric-vehicle lineup, builds out an autonomous ride-sharing business offered by Cruise LLC and pushes into subscription-based services in its cars.

GM plans to reach that ambitious growth target while also expanding margins even as it shifts toward electric vehicles, the company said Wednesday in a presentation to investors. The company said that some of the new businesses, like its Super Cruise hands-free driving service, could have higher margins than selling cars and will drive bigger profits. The automaker brought in $122 billion in revenue last year.

To achieve that, Barra said the company will look to get $80 billion in new revenues from software-enabled services and new businesses such as Cruise, the BrightDrop electric delivery van business and GM’s new Defense and OnStar Insurance lines. Of that $80 billion, the software platform alone is expected to generate between $20 billion and $25 billion a year in new revenue, she said.

“We don’t have a dome that’s big enough for the pipeline of all the vehicles we’re working on,” Reuss said. Ultra Cruise will be offered on GM’s high-end models, the company said. Both Ultra Cruise and Super Cruise will be paid subscription services.

 

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