Yahoo Finance General Motors (GM) to Boost Foothold in EV and E-Commerce Space
General Motors GM recently announced a string of initiatives and developments to enhance its foothold in the electric vehicle (EV) and digital commerce space.
Launch of an Online Parts Store
The company is set to launch its online parts marketplace, making its catalog, consisting of 45,000 repair and maintenance parts, more convenient for brand owners of Chevrolet, GMC, Buick and Cadillac. The new catalog includes oil filters, engine and cabin air filters, windshield wiper blades, brake pads, accessory belts, batteries and cooling hoses, among other parts.
The online parts store advances GM’s investment in digital commerce, as it combines the convenient features of online shopping and physical retail into one experience. Customers can opt for home delivery or pick up their orders at one of the 800+ participating dealers. Parts purchased through the online platform are eligible for Chevrolet, Cadillac, Buick and GMC rewards programs and can earn customers points that can be used to pay for parts, accessories or Certified Service at participating dealers. Also, it assures customers that they are buying original equipment ACDelco and GM Genuine Parts that are a good fit for their vehicles.
GM estimates online sales of parts and accessories to make up a $40 billion total addressable market by 2030, and it sees significant revenue growth from its expanded e-commerce effort. GM launched online accessory sales in 2015 and sells all of its 5,000 accessory products online.
The parts and accessories online store is built on one of the three platforms that form the backbone of GM’s digital commerce transformation. GM’s digital retail platform will soon allow customers to shop, purchase and finance electric vehicles entirely online. The company is also extending its subscription services platform to support new recurring revenue opportunities. These initiatives add up to $20-$25 billion in annual software and services revenue opportunities announced by the company at Investor Day in October 2021.
Collaboration With Blink Charging
In another noteworthy development, General Motors has joined forces with Blink Charging BLNK. Per the pact, Blink Charging would deploy EV chargers at GM dealerships in the United States and Canada. Working together with leading facility solutions provider ABM, Blink is supplying its IQ 200 Level 2 chargers to the U.S. auto giant. The Blink IQ 200 chargers are the fastest Level 2 AC charging stations available that reduce charge times for new EVs coming to market.
Blink Charging has already shipped chargers to selected GM dealerships in all 50 states across the United States. Currently, it has orders on hand to supply the same in Canada over the next several months.
GM Wins Tax Break
In what might be a breather to General Motors, the auto giant will get a big tax break in Orion Township to expand its assembly plant there so that it can build more EVs.
In a unanimous vote, the Orion Township Board of Trustees has approved GM's request for tax abatement on its proposed $1.3 billion investment to expand Orion Assembly Plant.
In its tax abatement application, GM noted that it plans to start the plant expansion in July 2022 and finish the construction by December 2025. The company has appealed for tax abatement for 12 years, plus the three years for construction. The amount of tax that it will have to pay after its $1.3 billion investment will be determined by a taxing authority.
The company presently builds the Chevrolet Bolt EV and the Bolt at the Orion plant and employs about 1,200 people there. The expansion is expected to create or retain roughly 2,000 jobs.
Zacks Rank & Other Key Picks
Currently, General Motors carries a Zacks Rank #2 (Buy). GM’s shares have risen 7.2% over the past year compared to the industry’s 3.8% rise. The company has an expected earnings growth rate of 36% for the current year
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Some other top-ranked players in the auto space are Genuine Parts GPC and Tesla TSLA, each carrying a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Genuine Parts has an expected earnings growth rate of 11% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 36.6% over a year.
Tesla has an expected earnings growth rate of 32.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 21.2% over a year.
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