Finding Out: How GM Makes Money?

Aug 16, 2022 By Triston Martin


GM is switching from gasoline-powered to battery-powered automobiles (EVs). The future earnings and revenues of GM are predicated in this essay. GM's automobile division comprises three entities: GMNA, GMI, and GM Corporate. Vehicles from Buick, Cadillac, Chevrolet, GMC, and Holden are exported to markets outside of North America through GM International. Among the GM automobiles sold in China are those under the Baojun, Buick, Cadillac, Chevrolet, and Wuling brands, to name a few.

List of General Motors Models

Ranker highlights the following among the numerous highly valued GM cars:

  • The Hummer H2's bed may be extended up to 6 feet. In this taxi, up to seven passengers may travel.
  • The Pontiac GTO, built between 1964 and 1974, is widely considered the first muscle car, starting a trend that inspired numerous copycats.
  • A plug-in hybrid called the Chevrolet Volt made its debut in the US in December of the previous year. The Chevrolet Volt has helped GM sell over 73,000 units since it first appeared on the market.
  • As the automaker's first sport utility vehicle (SUV), the Cadillac Escalade was introduced for the 1999 model year and competed against upscale rivals like the Lincoln Navigator.
  • The second generation Corvette Stingray production was modeled around the 1957 Corvette Stingray Racer.
  • Due to its iconic status, the Chevrolet Camaro is recognized as a pony and a muscle car. It was developed as a Ford Mustang substitute for the 1967 model year.
  • Midsize four-door crossover with four-wheel drive and a four-speed automatic transmission, the Pontiac Aztek was built between 2001 and 2005.
  • The midsize luxury automobile, the Cadillac CTS, made its debut in 2002. Currently, you can get it as a sporty five-door wagon, a two-door coupe, or a four-door sedan.
  • The H3 is the smallest and only SUV made by General Motors in the Hummer lineup.
  • The Chevrolet Chevrette: This subcompact car was manufactured from 1976 to 1987 in either a three-door or a five-door body style.

How Chevrolet Was Vital to General Motors' Success

After him, the Chevrolet brand was created by General Motors. William C. Durant wanted the well-known driver to assist improve GM's reputation in 1911. Chevrolet was Ford's biggest rival at that time 1919. Alfred Sloan is responsible for Chevrolet's accomplishments. Its quick ascent to renown was fueled by value, durability, and effectiveness.

Consumer Reports referred to the original Chevrolet Series C as a Classic Six. The 40 horsepower has a clear edge compared to the Model T's 20 horsepower. By 1929, Chevrolet had overtaken Ford as the most popular car brand in the country. It is the most lucrative product for the business. In 1955, GM unveiled its small-block V-8 engine. GM eventually used this engine architecture extensively throughout its lineup, including in its pickup trucks and SUVs. High-performance General Motors vehicles with this engine include the Corvette and Camaro SS.

GM's Financial Targets

How GM Makes Money? GM intends to increase yearly revenues from the current five-year average of roughly $140 billion by the end of the decade through investments in software and other industries. GM projects that the shift will increase margins in the core car industry by the decade's end to 12 to 14 percent as EV usage rises and battery costs decline. The company diversifies into higher-margin software and other business platforms.

GM anticipates that EV sales will soar from an anticipated $10 billion in 2023 to an estimated $90 billion annually by 2030 after introducing a flood of alluring EVs in high-volume areas. By the end of the decade, according to GM, its connected vehicles and other new businesses will bring in over $80 billion in additional incremental revenue. With an anticipated $50 billion yearly revenue by the decade's end, General Motors will enjoy a prominent position in the autonomous services market once Cruise is fully commercialized.

In the medium term, it is anticipated that annual GM capital spending, including investments in Ultrium joint ventures, will range between $9 billion and $10 billion as the company transitions to a product portfolio dominated by EVs and is funded internally. Due to its strong profitability and expanding margins, GM believes it can fully support these efforts using internal revenues. GM forecasts an 80% to 90% cash conversion rate for the second half of this decade. The long-term success of GM depends on maintaining an investment grade rating, and the company's strong financial sheet will enable it to continue investing in our growth objectives.


General Motors has led the way in its sector for more than a century. It remains to be seen if General Motors will successfully produce electric vehicles. However, it is anticipated that EV sales will somewhat offset the revenue lost as a result of the drop in sales of carbon-based vehicles. There will undoubtedly be challenges and a significant financial commitment needed to complete the transformation. In the next ten years, GM will face competition from other manufacturers, expanding their EV production and sales.

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