General Motors announced on the 19th that it plans to invest $ 27 billion (about 30.69.9 billion won) in developing electric and self-driving cars by 2025.
According to press reports, GM announced in March that it planned to invest $ 20 billion in developing electric cars and self-driving vehicles, but added $ 7 billion (about 77,959 billion won) to that.
General Motors said it will increase the proportion of electric cars to 40% of all vehicles sold in 2025, and made clear that by that time, the price of car batteries will decrease by about 60% compared to the batteries currently used in the Chevrolet Volt.
GM also said it is planning to release some electric cars sooner than expected, and introduced that the Cadillac SUV’Lyric’ will be released around the beginning of 2022, nine months earlier than originally scheduled.
In this regard, GM’s CEO Mary Bara is confident that GM will eventually catch up with Tesla in the electric vehicle sector as it has strengths in manufacturing and sales. He also suggested that he is not excluding the possibility of spin-off of the electric vehicle sector, saying he is open to the possibility of capital structure change.
Even though GM is the largest automobile company in the United States, its market capitalization is $61 billion, which is far below Tesla ($476.9 billion). Even China’s electric vehicle startup Nio (Chinese name Weilai) has a market capitalization of $4 billion less. Earlier, Germany’s Volkswagen also set capital expenditure to $41 billion (about 45,669.9 billion won), a 6% increase from the original plan by 2025, and said that half of them will invest in the development of future vehicle technologies such as electric vehicles and autonomous vehicles.