It is recommended that you download your current lightbox contents and clear its assets to add more. The Silverado EV will feature an available segment-leading fixed-glass roof for retail models. Simulated vehicle shown. Actual production model may vary. Initial availability to be announced at a later date.
Ultra Cruise will ultimately enable door-to-door hands-free driving on all public paved roads in the U. Global Brands Brands Corporate.
Follow Us. Print Email Add This. Combining its success with the Bolt and its formidable manufacturing and distribution capabilities, GM plans to roll out its EV technology with at least 20 different EV models by For comparison, Tesla produced four models in its 1Q20 production. The firm has shown its ability to leverage its technology across multiple models with its Cruise autonomous driving technology. For example, the firm is leveraging its Cruise technology to develop a semi-autonomous system for its passenger cars, which it calls Super Cruise.
On a standalone basis, GM stands to benefit from growth in the autonomous vehicle market, which MarketsandMarkets estimates will grow from just about thousand units in to 6. This expectation seems overly pessimistic. I normally include excess cash in my calculation of economic book value.
In this scenario, I assume:. This scenario also accounts for the debt issuance since the end of 1Q20 noted earlier. I conservatively assume this capital will be used to cover operating expenses and do not treat it or any other cash as excess cash. See the math behind this reverse DCF scenario. General Motors has surpassed this profit level in nine of the last 10 years. If I assume, as does the International Monetary Fund IMF and nearly every economist in the world, that the global economy rebounds and returns to growth starting in , GM is significantly undervalued.
If profits return to these levels in less than 10 years, GM has even more upside potential. Tesla and General Motors are a perfect example of this misallocation. The following competitive advantages help General Motors survive the downturn and return to growth as the economy rebounds:. These days, fewer investors focus on finding quality capital allocators with shareholder friendly corporate governance.
Instead, due to the proliferation of noise traders, the focus is on short-term technical trading trends while high-quality fundamental research is overlooked. General Motors suspended its dividend and share buyback program in April to preserve liquidity. Firms with cash flows greater than dividend payments have a higher likelihood to maintain and grow dividends. While General Motors suspended its dividend in the short term, investors buying at current prices should get a nice yield with upside potential as the firm reinstates the dividend over the long term.
Historically, General Motors has also returned capital to its shareholders through share repurchases. A return to repurchasing shares once the economy stabilizes, or even returns to growth, would provide additional yield for investors. Though the COVID pandemic has reduced demand for automobiles, these lowered expectations provide a great opportunity for a strong company, such as General Motors, to beat consensus. This question would be answered only after the first major battle between engineering and aesthetics.
GM's engineering staff at this time was led by the legendary Charles Kettering, inventor of the electric starter, the high-compression V-8 engine, and lead gasoline additives , the latter of which subsequently proved to be a dangerous pollutant. He and his engineers defined better quality in a utilitarian way, as improved performance and economy.
In the early s they were working on an innovative air-cooled engine that GM planned to incorporate into the Chevrolet in order to make it competitive with Ford's Model T. It was called the "copper-cooled engine" because of the copper fins on the block for dispersing heat. But the engine was delayed due to technical problems, and Sloan grew impatient, declaring that this "engineering dream" undermined the "commercial-mindedness of our strategic plan.
He ordered development of the air-cooled engine sidetracked, deciding instead to offer in a Chevrolet with nine-year-old-technology but a new body of the latest style. This gave the mass-produced car the look of an expensive craftbuilt luxury car, with a lower roof, higher hood, and more rounded lines.
Brisk sales of the new-looking Chevrolet convinced Sloan that to compete with Ford it was not necessary to lead in engineering, but merely to offer consumers better looking cars with more variety. As a result, there emerged an expression among the engineers at GM: "Whatever you do, don't let GM do it first.
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