Cadillac CT 6

Cadillac CT 6

GM President Dan Ammann and GM Executive Vice President and GM China President Matt Tsien announced a five year plan with emphasis on more products and more energy conscious technologies. The company is also focusing on other “value-added” services including financing and insurance, and pushing into the future of personal mobility.

General Motors and Lyft Inc. will create an integrated network of on-demand autonomous vehicles.

General Motors and Lyft Inc. will create an integrated network of on-demand autonomous vehicles.

China is currently GM's largest market, comprising over a third of the company's global sales. GM anticipates this to continue increasing 3-5 percent per year.

Tsien Said:

“GM is very well positioned to participate in this growth. We will continue to focus on the segments where the demand is strong and growing. This has been a key to our success from day one.”

At least 10 new “greener” vehicles (some of which will be plug-ins) will come into the mix, including the Cadillac CT6 Plug-in Hybrid Electric Vehicle. About 40 percent of the vehicles that GM releases in China in the next 5 years will be SUVs, MPVs, and the Cadillac luxury vehicles. During that time, the company plans to introduce 10 new models in the Cadillac line.

Ammann explained:

“Our core business of selling great vehicles today is what will fund our investment in tomorrow. The China market is maturing and it will still be a tremendous source of growth for us in both the short term and the long term.”

GM plans to vamp up “value-added” sevices through its SAIC-GMAC partnership. The joint venture is already the biggest auto finance company in China. It is speculated that by the end to the decade 40% of Chinese car buyers will finance. The figure is already at 30%. This should help buyers to more easily afford the new energy vehicles. The partnership will also aid customers in obtaining insurance.

Technology and the future of personal mobility is also a huge push for GM. The company has about 500 connectivity patents. By the end of the year GM will have 12 million vehicles on the road with On-Star, and by 2020, 75% of its global vehicles will be connected.

GM will be investing $500 million in an alliance with Lyft to create an “on-demand” autonomous ride-sharing service in the U.S. The company also launched its own car-sharing program called Maven. It will expand this through a pilot program with Shanghai Jiao Tong University, similar to the one already in place at University of Michigan. Very recently, GM acquired Cruise Automation for $2 billion. The small software company will be integral to GM's ability to delve deeper into autonomous vehicle technology.

Source: GM