GM CEO Says General Motors EV Spinoff Brand Could Happen
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Back in October, GM Authority proposed a new General Motors EV spinoff brand as a means to highlight the automaker’s all-electric offerings and differentiate GM’s battery-driven vehicles from its internal combustion vehicles. Now, recent remarks from GM CEO Mary Barra indicate that such a thing could very well happen.
GM CEO Mary Barra at the 2017 Chevrolet Bolt EV debut
In a recent call with analysts following the release of of the GM Q2 2020 earnings numbers, Barra was asked if the automaker would consider a General Motors EV spinoff brand, especially in the light of investor enthusiasm for existing EV-centric companies like Tesla.
“We are open to looking at and evaluate anything that we think is going to drive long-term shareholder value, so I would say nothing is off the table,” Barra responded, later adding that she saw no obstacles to making such a thing a reality.
A refocus on the General Motors EV products was also addressed earlier in the call, when Morgan Stanley analyst Adam Jonas suggested a possible company name change.
“Why not call the company Ultium?” Jonas asked, referring to the company’s latest all-electric vehicle battery technology, which will power upcoming General Motors EVs like the Cadillac Lyriq crossover and GMC Hummer pickup.
Barra responded by saying GM does indeed consider questions like that as it invests heavily into the EV segment and moves to offer additional EV products, adding that technology development, lower battery cost, and EV vehicle sales will be critical to gaining interest from Wall Street.
“We’ve got to deliver … and demonstrate that we have products people want to buy,” the GM CEO stated.
Teaser for the upcoming Cadilly Lyriq EV crossover, slated to debut next week
When asked if she expects any of the new General Motors EV products to sell at volumes of 100,000 annually or higher, Barra said that automaker will get “our fair share plus more.”
Last year, when GM Authority proposed a spinoff brand devoted to General Motors EV products, most readers responded positively, with a little over 50 percent of poll responders agreeing that such a proposal was a good idea. Meanwhile, a little under 40 percent of poll responders thought that the current branding was enough, while less than 10 percent of responders weren’t fans of EVs in general.
What are your thoughts on a General Motors EV spinoff brand? Let us know by voting in our new poll below, and make sure to subscribe to GM Authority for around-the-clock GM news coverage.
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I look at Toyota. Are they effective in their center of the road approach? The BOLT was a poor choice, as was the Volt. They are drab, no dynamics. The Edison, might have some value since Tesla was an engineer under Thomas Edison. Edison denotes electric, battery, lighting and so forth. I think the internet shopping can still occur, just reduce inventories as many dealers have done. You need to bring back hybrids in a big way. Non electric minds need a path to arrive electric. Your the only one not sliding slowly into electric. If ICE is banned, your in a good projection, otherwise, hybrid transition. That’s how I got there.
Brilliant concept from Brilliant management! There is only ONE name, Name it ALSET! Futuristic, Innovative, Brilliant, Light years ahead of the competition!
“most readers responded positively” That not what I see!
Adam Jonas also suggested that Corvette should be spun off in November, seems he thinks he would be a better CEO.
time to “spinnoff Mary.
O.K. so five years from now, the Corvette team wants to build a battery Corvette. Now what? Do you take the Vette away from Chevrolet and transfer it to the battery car division? Chevy dealers might have a problem with that.
Corvette is one model on a platform used only by Corvette! Best to cancel Corvette and put the resources to use building SUV/CUV. That is where the best ROI is. Low cost high volume. Corvette name has value. The new SUV/CUV with the 3.6 engine will be named Corvette. The market and stockholders demand it…
Yes Cadriver, I think we can all agree that what the world needs is yet another SUV.
Thanks Ted… Im hoping for a job offer from GM at the big table and want to sound like a real GM mastermind!!!!!!!
Yeah, right, You do realize the biggest ROI on the Corvette has always been design and manufacturing tech development!
New name? How about General Electric? It doesn’t appear G.E. would fight it.
“We’ve got to deliver … and demonstrate that we have products people want to buy”. That’s it. The proof is in the pudding. I don’t think Tesla is interested in buying GM. What would Musk do, if he had GM. It probably won’t look like what it does today.
Why would Musk buy GM? Tesla has a valuation 11 X higher than GM and he’s making billions with no legacy costs and no union or IC cars…
Well Nick, maybe to make a profit? You say he’s making Billions, well he is but Tesla is not. Tesla’s market cap can Pfft in a hurry and Musk’s paper wealth will go with it (unless he unloads his stock which he doesn’t dare to do). Personally, I hope he is successful, love to see an American company beat BMW, Mercedes etc. at the luxury game.
I AM EXCITED THAT CADILLAC IS BUILDING AN ELECTRIC FLAGSHIP MODEL, BUT IF THEY DROPPED THE CT6 FOR LOW SALES NUMBERS WAIT UNTIL THEY TRY TO GET $200,000 OUT OF A CADILLAC OWNER.
A new GM brand is necessary to separate itself from internal combustion propulsion to EV.
Use GM “Electrique”!!!. Goes well with the theme of the new vehicles.
I am definitely buying a Bolt EUV as soon as it is available for sale!!
Proof that she is clueless!
Make Barra retire!!
Why?
That would be a mistake; keep GM intact and keep GM’s name. IBM kept their name from electromechanical business machines to electronic computers and no name change served IBM well.
Mr Techprodigee, with all due respect:. YOU’RE NUTS !
I have wanted to say this for a long time, so here it is people. Get rid of GMC and combine Cadillac and Buick to make ONE premium vehicle line. Chevrolet is entry level product with TRUCKS both entry level and premium for those people who want premium. Sell EV’s at a separate location through a dealership network.
That would be rational. No doubt, we would see better product as a result of consolidation.
For some reason, most fans on this forum don’t want to hear that.
The Toyota empire has 2 divisions for passenger vehicles and it has a valuation which is nearly 6 X that of GM.
More divisions = more cost and less money to develop excellent vehicle. And with more different versions of the same platform = less standardization and lower quality. That’s the Toyota crushing advantage and it works.
And BTW F%#k Oldsmobile and Pontiac!
I like the idea of a new name. How about something like “General eVhawked”?
General Motors is current. The engine is not but the motor is. You could drop Buick and have premium Chevrolet that are really premium. Make them all hybrid via Volt technology and slowly progress on electric. I know they tried electric Cadillac hybrid and it was not a big success. Only when ICE is not available will the general public turn to hybrid and then electric. The Corvette will be interesting in electric. I think the Mustang is sold out.
How will people pay for all that on soup kitchen income?
Hybrids are dead. Nobody can sell them other than Toyota and even their sales are declining. You can’t make money selling a car with two powertrains.
Another stupid idea from Adam Jonas, the same Adam Jonas which said the GM business EV could be worth 100 billion $, then it will not even be worth the half, even with the new name. Changing the name of the company will be needless, the wall Street’s investors are Tesla fan boys and there’s nothing to do with that. It reminds me the kind of so-called good ideas like to sell Opel or the withdrawals of several markets which had to “attract” the investors but until now the GM action always is under its IPO’s value. In addition, the “analysts” always are fans of spinoff, it’s annoying.
I am disappointed that GM does not pay a dividend and the stock doesn’t have positive momentum. I don’t think much will happen until there is new and innovative leadership.