After a solid start to the year, General Motors is raising its earnings and cash flow expectations for 2023. GM is gearing up for a breakout year with several highly anticipated EV launches planned across some of the most popular auto segments.
GM expects a breakout year with EVs in 2023
General Motors sold over 20,000 fully electric vehicles for the first time in the first three months of 2023, surpassing Ford as the number-two EV maker in the US and increasing its market share by eight percentage points.
The growth was led by the Chevy Bolt EV and EUV models selling 19,700 alone in Q1, the third consecutive record sales month for one of the most affordable EVs on the market. Cadillac Lyriq sales also expanded to 968 in the quarter, while only two GMC Hummer EV pickups were sold.
Looking ahead, GM expects the momentum to continue with plans to produce 50,000 EVs in North America in the first half of 2023 and 100,000 in the second half.
GM has several high-volume EVs launching this year, including the:
Silverado EV: Deliveries to begin later in the second quarter to the first 340 fleet customers. Production will ramp up in the second half of the year
Blazer EV: Launching this summer
Equinox EV: Launching this fall
The automaker mentioned “exciting news” will be coming in the next few weeks and months ahead on its growing EV portfolio of Chevy, Buick, GMC, Cadillac, and Brightdrop EVs. GM says the news will demonstrate that “work” and “range” are not exclusive terms for the Chevy Silverado EV and GMC Sierra EV, suggesting new trims will be unveiled.
Perhaps, most importantly, GM continues to build out its supply chain to support the growth with plans for four battery cell plants in North America targeting 160 GWh capacity. The automaker revealed news plans for a $3 billion battery cell factory with Samsung.
The battery cell production will enable GM to hit its target of producing 1 million EVs annually in North America by 2025.
GM Q1 2023 financial results
GM’s revenue rose 11% in the first three months of the year to $40 billion, beating Wall St. analyst expectations of $39.24 billion. In addition, GM generated $2.4 in net income. The growth comes despite net income margins slipping 26.8% YOY.
The automaker said it achieved record profits in the first quarter, excluding China. A challenging Chinese market caused lower volumes and pricing pressure from industry leaders.
The earnings growth comes despite higher interest rates and ongoing supply chain issues that have plagued much of the industry.
The strong quarter was enough for GM to raise its guidance for the year. GM now expects profits between $11 billion to $13 billion, up $500 million from its previous guidance.
GM is also expecting free cash flow between $5.5 billion and $7.5 billion, also up $500 million from previous estimates. The automaker says the higher expectations comes as it believed the second half would be more challenging than it’s shaping up to be.
Despite the risks, GM feels comfortable raising its guidance. The confidence comes as GM plans for a breakout year with EVs in 2023, including launching the Silverado EV, Equinox EV, and Blazer EV.
GM says launching the right models at the right price point will help fuel future growth.
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Kia’s upcoming entry-level EV has finally made its way to the famous Nurburgring for testing. The EV4 hatch was spotted ripping across the track, nearly on two wheels at one point, as Kia preps for its big debut.
According to Kia, the EV4 is “an entirely new type of EV sedan. ” It was first unveiled last October during Kia’s first annual EV Day, alongside the EV3 and EV5 as part of its new low-cost lineup.
The EV5 launched in China last year, while the EV3 is already rolling out in Korea and Europe. Next up, we will finally see the production version of the EV4.
Although its four-door format suggests it’s a sedan, Kia said the EV4’s bold design is a symbol of the company’s innovation. Its low nose, long-tail silhouette, and added roof spoiler give it an almost racecar-like feel.
With its official debut approaching, Kia’s EV4 has been spotted out in the wild several times. Last week, it was caught testing in the US for the first time.
A hatchback model has also been spotted. It was first caught on European roads this summer and in the US earlier this month.
Kia EV4 (back) showcased alongside EV9 (left) EV3 (middle), and EV5 (right) (Source: Kia)
Kia EV4 hatch takes on the Nurburgring as debut looms
After the EV4 was spotted racing across the Nurburgring for the first time, we are getting our best look yet at the upcoming Kia model.
The video from CarSpyMedia shows the EV4 hatch carving up sections of the track. Several times, you can see the EV4 is being pushed to the limits, nearly going up on two wheels.
Kia EV4 hatch testing at Nurburgring (Source: CarSpyMedia)
However, with a low center of gravity and likely added stabilization tech, the EV4 appears to handle it with ease. You can also see the difference between the sedan model and the hatchback, with the bulky backside.
As it takes on the track, it almost looks like the 576 hp EV6 GT, Kia’s fastest and most powerful car. At least for now.
Kia EV4 sedan concept (Source: Kia)
Kia is expected to officially reveal the EV4 by the end of the year, with deliveries starting in 2025. Prices are expected to be in the $30,000 to $40,000 range. The hatchback model is likely aimed at Europe, but it could also find a market in the US as buyers drift toward more efficient options.
Ahead of the LA Auto Show later this week, Kia is teasing five new vehicles for the US, at least one being an EV. Will it be the EV4? EV3?
Source: CarSpyMedia
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Elon Musk is hinting at Tesla making bigger electric cars, but you shouldn’t hold your breath as it’s not the first time he said that.
In the last few hours, Musk responded to two fans on X, asking Tesla to build bigger vehicles to support larger families.
Musk often promotes the idea of having bigger families as he is afraid of declining populations due to low birth rates in some countries.
With the first one, the CEO responded with a simple “OK,” and with the other, he elaborated a bit more by referencing the recently unveiled Tesla Robovan and “some other things”:
Musk appears to be hinting at Tesla’s work on a bigger electric vehicle that has yet to be unveiled.
While interesting, it’s hard to give too much weight to the comment, considering Musk claimed that Tesla has been working on a higher passenger capacity vehicle for years.
A “high passenger-density urban transport” vehicle has been in Tesla’s official product roadmap since 2016 and has yet to be unveiled, unless you count the Robovan unveiled last month, but that’s completely attached to Tesla’s self-driving effort as the vehicle has no steering wheel or pedals.
As part of Tesla’s shift toward autonomous driving, the automaker has pulled back plans for several new electric vehicle programs in favor of those without any driver inputs, like Cybercab and Robotvan.
Tesla is expected to soon unveil two new vehicles to be launch next year, but those are based on the Model 3 and Model Y and therefore, they aren’t likely to be bigger vehicles.
Electrek’s Take
Like most things Elon says lately, it goes in my “I’ll believe it when I see it” folder.
That said, I think an electric van that can be configured for cargo, camper, or passenger, would make a ton of sense in Tesla’s vehicle lineup.
Of course, it’s harder to get the greenlight for a vehicle program like that if your CEO is perpetually convinced that the company is on the verge of achieving self-driving and making steering wheels obsolete.
I’m more of the opinion that Tesla should have played it more careful and continue working on growing its human-driveable EV lineup while working on self-driving.
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Penske Truck Leasing is rolling out rooftop solar on its US truck leasing, rental, and maintenance buildings, starting in Illinois.
Penske Truck Leasing, which offers an electric truck fleet leasing program, wants to cut emissions and save energy, so it’s activated its first rooftop solar system at its new facility in Channahon, Illinois (pictured). The 200 kW system is expected to generate about 80% of the building’s energy needs, and the rest will be supplied by the local utility.
The next Penske Truck Leasing rooftop solar system to come online will be in Grand Rapids, Michigan, “in the coming months,” followed by another in Linden, New Jersey, in 2025. All three of these new buildings are part of Penske’s LEED building program, which is designed to reduce energy use and promote sustainability.
Seven of Penske’s existing facilities in California will also get solar retrofits. These locations, which include Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro, are expected to generate about 600 kW of renewable energy in total.
Penske has teamed up with Sunrock Distributed Generation under a power purchase agreement to make the California upgrades happen. The company is also working with ForeFront Power, based in San Francisco, as its lead consultant for the solar rollout.
On average, these solar-powered Penske facilities will generate around 1 million kWh of renewable energy each year, preventing about 442 metric tons of CO2 emissions annually. That’s equivalent to the amount of energy needed to power nearly 90 homes for a year.
Drew Cullen, senior vice president of fuels and facility services at Penske, highlighted the significance of this move, noting:
Our solar program is an important piece of our renewable energy strategy, and ForeFront Power continues to be an outstanding partner in helping us bring these projects to fruition.
These investments will allow us to directly generate our own renewable energy to power our locations and continue to support our customers with sustainable solutions.
Penske Truck Leasing, part of Penske Transportation Solutions, is headquartered in Reading, Pennsylvania, and operates over 437,000 vehicles across North America, with nearly 1,000 maintenance facilities and more than 2,500 rental locations. Its investment in solar power is a key part of its broader sustainability strategy to cut emissions and reduce reliance on traditional energy sources.
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