By Gary S. Vasilash
Although it is now common to hear people say the auto industry is undergoing the biggest transformation since it became an industry rather than an undertaking by a whole bunch of people who were taking a flyer at building cars—most of whom moved on to other things, including bankruptcy court—unlike many other things that everyone says, it really is true:
Uniformly—from the US to Europe to Asia—OEMs are spending billions of dollars to transform their operations from being focused on vehicles that burn gasoline to vehicles that run on electricity.
Think about that for a moment: These are companies that have been essentially doing one thing for decades: developing and producing internal combustion engines. Yes, these engines get wrapped and outfitted with the other things that make up a car or truck. But when it comes to what makes one vehicle manufacturer different than another has long been thought to be their engine technology.
(One could make the argument that this was changed by Toyota when high quality became a metric that appealed to buyers, and while that is undoubtedly true for a percentage of vehicle buyers, there are still those who want a HEMI or an EcoBoost. BMW didn’t proclaim itself to be the producer of “The Ultimate Driving Machine” because of the shape of its grill; it was what’s behind the grill that mattered.)
General Motors is in the process of spending some $35-billion on EVs—a spend by 2025. The company plans to have capacity to build 1-million EVs by that time. By 2030 it plans to have 50% of its North American production capacity dedicated to EV production.
This work being undertaken at GM isn’t just designing and engineering the vehicles, but in developing the batteries that go into them (Ultium batteries). Think about that for a moment: the batteries store the energy that power vehicles analogously to gasoline in a vehicle powered by an internal combustion engine. GM didn’t get into the gasoline business. In addition to which, GM announced that it is spending $750-million in North America to build out charging stations. Again, there are no gas pumps that have GM logos on them.
But this is the level of transformation that the automaker is undertaking.
On this special edition of “Autoline After Hours” GM president Mark Reuss spend the hour talking to John McElroy and me about the corporation’s electric transformation. It is an in-depth discussion of the changes that the company is proactively making. Reuss explains why they are making batteries, how they are competing in the EV market, why vertical integration matters, why vehicle-to-grid is an important development, and more.
And you can see it all here.