How to surpass Tesla? GM CEO put it aside: seize the cheap electric vehicle market

Car stuff (public number: chedongxi)

Author | Alice

Edit | Juice

According to foreign media InsiderVs, General Motors will focus on the production of cheap electric vehicles as one of the strategic measures to surpass Tesla.

GM CEO Mary Borah recently said in an interview with Yahoo Finance that GM will replace Tesla as the world's largest electric vehicle manufacturer by making cheaper electric vehicles.

"GM is doing its best, and in 5 years our electric car sales in the United States will surpass other car companies, including Tesla." Mary Bora said.

Marie Bora said in an interview that in addition to launching high-end models, GM will also launch electric vehicles under $30,000 (about 200,000 yuan) to further gain a larger market share through the high-end + cheap strategy.

As the leader of the era of fuel vehicles, GM has also made many efforts in the electrification transformation, and there is still a long way to go to continue to maintain its leading position.

First, it will launch a new car with a price of less than $30,000 to reduce costs in partnership with Honda

Earlier last month, GM and Honda announced that they would collaborate on a new joint platform to develop a range of low-cost electric vehicles that would leverage the technology, design and supply chain advantages of both companies.

Electric vehicles jointly produced by GM and Honda will include popular segments such as compact electric crossovers, which are expected to go on sale in 2027.

In addition, in order to reduce costs and reduce the burden on consumers, the two car companies will cooperate on electric vehicle battery technology in the future to further reduce the cost of electrification, improve the performance of electric vehicles and promote the sustainability of vehicles.

In addition, the two companies will work to standardize equipment and processes to achieve high quality and low cost of vehicles through large-scale production.

Judging by GM's upcoming models, both the 2024 Chevrolet electric car and another unannounced electric car will start at less than $30,000 (about 200,000 yuan).

▲ Chevrolet Explorer EV

Currently, GM's cheapest electric car is the Chevrolet Bolt electric car, which starts at $31,500 (about 210,000 yuan), while its rival Tesla's entry-level electric car, the Model 3, is priced at $46,990 (about 314,000 yuan), and the car is currently rising in price.

Among GM's recent or upcoming electric vehicles this year, the Chevrolet Silverado electric pickup truck has the lowest price, selling for $39,900 (about 266,000 yuan). Higher-end models such as the Cadillac Lyriq and GMC Hummer electric vehicles are positioned in the luxury market, starting at $58,800 (about 390,000 yuan) and $79,900 (about 530,000 yuan), respectively.

Cadillac Lyriq

Second, it previously announced that it will invest 7 billion US dollars in electrification and cooperate with raw material companies

In January, GM announced a $7 billion investment announcement.

GM said it will invest more than $7 billion (about 44.27 billion yuan) in four manufacturing sites in Michigan by 2024 to increase electric pickup production.

According to GM's investment announcement, GM will invest $2.6 billion (about 16.45 billion yuan) through the Michigan-based LG New Energy Joint Venture to build a new battery factory.

▲GM's battery factory

It is reported that the new battery plant covers an area of about 260,000 square meters and will be put into operation at the end of 2024. It is also GM's third battery plant in the United States. The other two are battery plants in Lodztown, Ohio, which are expected to roll off the production line later this year, and another in Tennessee, which will roll off the production line in 2023. Foreign media expect that GM is likely to set up a new battery factory.

In order to accelerate the transformation of the electric vehicle business, GM has actually cooperated with a number of raw material companies.

Last December, GM formed a joint venture partnership with German company Vacuumschmelze (VAC) to build a plant in the United States to make permanent magnets for electric motors for GM's future electric vehicles.

GM has also formed a joint venture partnership with South Korean battery materials company POSCO Chemical to build a plant in North America to process battery materials for GM's Ultium electric vehicle platform.

It is understood that the joint venture will produce "Cathode Active Material" (CAM), a key battery material. According to GM, CAM accounts for about 40 percent of its battery costs.

In October 2021, GM announced a strategic supplier agreement with Wolfspeed, a North Carolina-based semiconductor company, to develop and provide silicon carbide (SiC) power solutions for GM's future electric vehicles.

Conclusion: GM is struggling to make the transition to electrification

In 2021, Tesla's share of the global electric vehicle market is close to 14%, while GM's market share is 7.6%.

GM's investment and cooperation in the field of electric vehicles to accelerate its electrification transformation and establish the goal of "surpassing Tesla" can be seen in the anxiety of this traditional car company in the transition to electrification.

But from the current point of view, the difficulties in front of GM are still arduous, and Tesla will not stand still during this period, after Tesla CEO Musk has said that it will launch a new model of $25,000 (about 167,000 yuan), and after the launch of Tesla's cheap model, GM's low-price strategy will be further challenged.

Whether or not it can surpass Tesla, it can narrow the gap with Tesla through electrification transformation and occupy a place in the wave of electrification.