The auto industry’s woes are far from over, but the second half of the year represents a return to planning for the future rather than responding to short-term supply chain crises.
General Motors, which reports its second-quarter financial results Wednesday, is ready to roll into the third-quarter with an eye toward long-term strategy. The automotive juggernaut is building new battery plants, expanding the EV charging infrastructure, and gearing up to unveil the Cadillac Celestiq, the six-figure sedan that sets the tone for GM’s future electric models.
Still, GM faces intensifying competition from automakers worldwide putting billions of dollars behind their EV programs, as well as production bottlenecks and price uncertainties in the supply chain.
Overall, GM’s U.S. sales fell 15.4% in the second quarter, to 578,639, compared with the same period a year ago. Industry wide, new vehicle sales in the U.S. dropped 20.3% during the same period, to 3.53 million.
What analysts and TechCrunch will be watching out for
Per data from Yahoo Finance, analysts expect GM to report profit of $1.30 per share on revenues of $34.6 billion in Q2 2022. GM reported a profit of $1.90 per share on revenues of $34.2 billion a year earlier.
GM will likely provide an update on consumer demand for its EVs as it strives to launch 30 new EVs globally over the next couple years. The Chevrolet Bolt EV and EUV are on sale, the GMC Hummer EV and BrightDrop EV600 have entered production, and the launch of the Cadillac Lyriq is imminent.
The Chevrolet Silverado EV begins production in early 2023, followed by the all-electric Chevrolet Blazer SS and Equinox EV.
We’ll be listening for GM’s plans to compete against the electrified models from Ford, Hyundai, Tesla and others.
Battery and EV assembly
GM said Monday it received a $2.5 billion loan from the U.S. Department of Energy to build new lithium-ion battery cell manufacturing plants with LG Energy over the next three years. The joint venture, Ultium Cells, plans to invest more than $7 billion to build factories in Michigan, Ohio and Tennessee.
GM’s earnings call with analysts Tuesday may provide updates on the project timeline and production volume, as well as what it means for GM’s forthcoming EVs. The first facility, in Lordstown, Ohio, is slated to open in August. The automaker will begin production at its plant in Spring Hill, Tennessee, in late 2023, followed by a facility in Lansing, Michigan, in late 2024.
The automaker is also likely to provide updates on its subsidiaries, including AV company Cruise, which became last month the first company to offer fared rides to the general public in a major city when it launched its autonomous robotaxi service in San Francisco.
Cruise said Monday it has begun rolling out an autonomous driving service in Dubai. It has dispatched a pair of Chevrolet Bolts to map the city, starting with the Jumeirah area, a residential strip along the beach. A launch is planned for 2023.
We’ll be listening for news on the Cruise Origin, as well as updates on GM’s Factory ZERO assembly plant, where the company’s purpose-built AV will be produced and GM’s BrightDrop e-delivery van subsidiary, which is busy filling an order from Walmart, the nation’s biggest retailer, for 5,000 vans.