General Motors (GM) to Extend EV Offerings Beyond Core Portfolio
General Motors GM recently announced its strategy to offer electric vehicle (EV) technology beyond its core product menu and automotive applications, one component at a time, advancing the firm’s “Everybody In” electrification approach.
Per the U.S. auto giant, this approach will enhance its footprint to a larger, more diverse group of commercial customers, propelling growth beyond vehicle sales and helping organizations meet the surging demand for sustainable technology. This will also aid the automaker to advance its journey of zero crashes, zero emissions and zero congestion, thereby achieving its carbon-neutral targets.
As companies spanning various industries are committed to reducing their environmental impact, GM is well-positioned in the auto space by delivering exciting new EVs across its numerous brands and through additional technology applications. The latest strategy adopted by GM ensures that existing and new customers will join the company in its pledge to create a zero-emissions world.
To facilitate strategy implementation, the auto biggie has an established strategy, network of integrators, and co-development agreements to provide a widespread suite of components and solutions to a broad range of customers.
General Motors forecasts that the total addressable market for electrification components could value $20 billion by 2030, as many industries introduce their own emission-reduction goals.
GM will apply the electrification components to EV conversion projects, commercial equipment, marine applications, and more to capture a niche of that market. The company will begin introducing various EV component sets in four key areas: Chevy Performance and Aftermarket, GM Powered Solutions, Ground Support Equipment and Marine Propulsion.
Chevy Performance and Aftermarket applications include the Electric Connect and Cruise eCrate Package launching in 2022. The pack will enable customers to replace their vehicle’s traditional internal combustion engine with a fully-electric propulsion system through GM’s electric specialty vehicle modifier (eSVM) program. The automaker has launched proof-of-concept electric conversion vehicles such as the E-10 pickup, K-5 Blazer-E, eCOPO Camaro, Project X, with the most recent being the 1972 El Camino SS developed with Lingenfelter Performance Engineering.
GM Powered Solutions will also begin unveiling customized electric component sets for tailor-made applications through its current GM Marine, On-Highway, Off-Highway and Industrial segments. This effort will also expand the company’s commitment to an all-electric future.
As far as Ground Support Equipment is concerned, GM will provide EV components to electrify Textron GSE’s TUG line of baggage tractors, cargo tractors and belt loaders. GM will provide technology to Powertrain Control Solutions, which will integrate the components into lithium-ion electric powertrains for TUG equipment, helping the electrification of ground support equipment for use in airports globally.
Finally, for Marine Propulsion, the company’s strategic investment in Seattle-based electric watercraft company Pure Watercraft is an exciting opportunity to bring EV technology to the marine industry. The companies will join forces to develop and commercialize battery-electric watercraft.
Additional extensions of General Motors’ growth strategy through electrification include the Hydrotec fuel cell commitments and co-development agreements, Ultium Platform applications and co-development agreements, Ultium Charge 360, BrightDrop, and Ultifi software platform.
Banking upon decades of engineering and manufacturing expertise, the automaker intends to apply the learning from one component set to the development of others, building an enriched product portfolio spanning a far-reaching set of applications. As the company bolsters its Ultium Platform and other zero-emissions technologies, it plans to launch smaller, more pocket-friendly and more flexible components and offerings over time.
General Motors currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Key Auto Stocks
Investors interested in the auto space may consider the following three solid auto companies: Goodyear Tire GT, Tesla TSLA and Harley-Davidson HOG. While Goodyear Tire and Tesla flaunt a Zacks Rank of 1, Harley-Davidson carries Zacks Rank of 2 (Buy).
Goodyear has an expected earnings growth rate of 196.86% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 80 cents over the last 60 days.
Goodyear beat the Zacks Consensus Estimate for earnings in the last four quarters. GT has a trailing four-quarter earnings surprise of 228.45%, on average. Its shares have risen 103.4% over the past year.
Tesla has an expected earnings growth rate of 166.96% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 7 cents over the last 60 days.
Tesla beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. TSLA has a trailing four-quarter earnings surprise of 25.38%, on average. Its shares have rallied 61.3% over the past year.
Harley-Davidson has an expected earnings growth rate of 34.92% for the current quarter. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 34 cents over the last 60 days.
Harley-Davidson beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. HOG has a trailing four-quarter negative earnings surprise of 138.45%, on average. Its shares have dropped 2.3% over the past year.
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