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FutureStarr10 Secrets to GM Raising 2023 Profit Outlook and Killing Off Chevy Bolts
General Motors, the nation's top car maker by sales, recently raised its profit outlook for 2023 due to a combination of strong demand and cost savings realized from its employee buyout program. On Tuesday, General Motors made headlines when it announced plans to end production of two of its most cost-cutting battery models ever made - the Chevrolet Bolt compact electric vehicle and EUV will both be phased out before year's end as GM begins manufacturing large pickups powered by battery cells at their sole plant in Orion, Michigan. 1. Focus on EVs GM is poised to experience an explosive year for electric vehicle sales in 2023. They will transition from being a small component of total sales volume, into being an essential contributor. Electric vehicles (EVs) provide value to both consumers and cities alike, enabling people to travel further while decreasing their carbon footprint. Many cities are taking steps to further maximize EV value such as deployment of charging infrastructure strategically or preferential or restricted circulation and access schemes. To accelerate EV growth, the White House is inviting companies and nonprofits to make new commitments towards this end. These could involve lowering EV costs; increasing charging infrastructure capacity; expanding competition; supporting equity and inclusion measures; or expediting an affordable transportation future for Americans. 2. Rework the Bolt General Motors will end seven years of the Bolt compact electric vehicle and Bolt EV utility vehicle sales as it reconfigures a factory in Orion, Michigan to produce large electric trucks. Sales for both models first started back in 2016, making the Bolt their first relatively affordable EV that could cover significant distance on one charge. It helped GM beat Tesla to market by several months and gain an early foothold in the growing EV market, but battery fires and recall costs ultimately put a dent in its success in selling EVs. General Motors announced it was recalling all Bolts sold up until that point after finding manufacturing defects that could lead to fires, effectively suspending production for several months while it resolved this safety issue. Bolt sales resumed again in 2022. 3. Rethink the Silverado/Sierra GM has an illustrious legacy as a full-size truck maker, and the Silverado/Sierra stands out as a cornerstone product in that history. Boasting bold styling and outstanding capabilities, its presence makes GM an invaluable competitor among other full-size manufacturers like Ram and Ford. The Silverado 1500 is one of the top-selling pick-up trucks on the market and an excellent option for meeting a variety of needs. Equipped with an efficient diesel engine and cargo-hauling capabilities, as well as luxury features available on higher trim levels. GM has made extensive improvements to their best-selling truck in America - the Silverado is currently the best-selling pickup in America, boasting the best towing capacity and bed length options on the market. Furthermore, you can now select your ideal bed length option from a wide variety of bed length options. Finally, this Chevy offers more than average towing capacities of 13,300 pounds! 4. Invest in GM’s Future General Motors recently invested over one billion dollars into four facilities to prepare them for producing parts needed to manufacture electric vehicles and next-generation V-8 engines, showing their commitment to developing gas-powered trucks and performance cars in its future plans. GM plans to invest $35 billion through 2025 in order to accelerate EV production and develop its battery and fuel cell technologies, as well as build a battery plant with South Korean firm Samsung SDI in 2026. GM also lifted its full-year profit outlook, noting consumers' willingness to purchase high-end models despite tightening budgets and tightening belts at GM. CFO Paul Jacobson reported the auto maker was ahead of schedule in cutting $2 billion from costs by 2024 as they strived to simplify operations across their business. 5. Reorganize the Workforce General Motors has implemented changes to its global workforce that will ensure they possess the appropriate skill sets for today and in the future. These measures will result in a 15 percent decrease in salaried staff and 25 percent fewer executives to facilitate decision-making processes more quickly. This move is part of the company's plan to reduce annual fixed costs by $2 billion by the end of 2023, an ambitious but necessary goal that will enable it to focus more effectively on developing innovative technologies and products for the future. GM believes this move will not only reduce costs but also help develop more fuel-efficient vehicles that will be easier to sell in an ever-more-competitive automotive industry. They expect these efforts will enable GM to gain market share. 6. Cut Costs GM understands the appeal of an affordable EV with long range, yet priced competitively. But with recent price drops and increased federal EV tax credits becoming available, justifying its current model costing $31,000 or more can become harder and harder even before taking into account state incentives. As a result, General Motors (GM) is canceling production of Chevrolet Bolts and shifting focus to producing more fuel-efficient vehicles instead. Last week, Barra announced that both Orion and Hamtramck plants would instead produce Silverado/Sierra EV trucks instead. GM believes the move will increase their long-term profitability by increasing sales of larger, heavier trucks that typically boast higher profit margins than smaller models. Alongside efforts to reduce costs in other areas, this initiative should help raise their 2023 profit outlook - something CEO Mary Barra and COO Dan Ammann highlighted during their first-quarter earnings call. 7. Focus on Fuel-Efficient Vehicles GM can make an immediate and significant impact in the market by emphasizing fuel-efficient vehicles. This market segment often goes underappreciated and offers great potential in an economy likely to shrink as consumers pare back spending. General Motors plans to sell one million electric vehicles by 2025 with investments totaling $35 billion, of which about 70% will be compact Chevy Bolt/EUV models while 80% are larger models using its new Ultium battery pack technology. It's an aggressive move by General Motors (GM), but should it work it will help set them up to thrive in an economic climate in which many automakers have struggled over the last several years. Furthermore, smaller EVs could help keep costs low as auto industry moves towards low-cost models meeting fleet mileage requirements instead of large gas-powered cars. 8. Invest in Safety Investment in safety programs may be costly upfront, but their return can be significant in the form of reduced workers' comp costs and medical expenses. Establishing a safety culture can boost employee morale. That is important since employees who feel valued will remain with an employer who cares for and respects them. Companies known for being health and safety conscious draw in top talent. This can help them win government contracts and retain employees, avoid fines and citations that cost money, increase productivity and lower turnover - and ultimately boost revenues and profits of any business. Just make sure your safety investments are made wisely! 9. Focus on Customer Service Customer service culture is critical in winning customers and keeping them for life. It can cover customer acquisition costs, foster loyalty among your clientele and make employees' jobs simpler. Studies conducted recently showed that 71% of consumers said poor customer service prompted them to decide not to purchase from a company, while positive experiences can encourage customers to spend more money, purchase other items from your business, and recommend your brand to friends and family. To keep customers satisfied, it's essential that they can express any concerns quickly - this is where a dedicated customer service team comes into play. 10. Focus on the Future Focusing on the future requires being purposeful about making decisions that support your desired future, and doing something each day towards that future even if results of those efforts don't appear immediately. The Chevy Bolt was one of GM's most affordable EVs, starting at an initial purchase price of $26,500 before tax credits. Yet despite this steep cost tag, it proved one of the most efficient cars on the market. The Ford Ecosport is an attractive car with practical features and high build quality; however, battery fires forced Ford to recall 142,000 of them in 2021. GM plans to discontinue production of the Bolt by December as it converts its Orion, Michigan assembly plant into an electric truck factory aimed at competing against Ford and Tesla vehicles that offer larger vehicles with much stronger profit margins than compacts like the Bolt. This plan could potentially make sense as Ford and Tesla both offer larger vehicles than can provide stronger profits than compact models like the Bolt.