Across the industry and around the world, social and technological changes are transforming personal mobility. I believe the auto industry will change more in the next five years than it has in the last 50, as we develop new options and modes of transportation for moving us from point A to B. This gives us an unprecedented opportunity to develop cleaner, safer, smarter and more environmentally friendly vehicles for our customers.
At GM, we’re excited by this opportunity and working hard to lead it.
We’ve made strategic investments in technologies that are rewriting the rules of vehicle use and ownership, including connectivity, car-sharing, alternative propulsion and autonomous driving. We see tremendous potential in these technologies and huge long-term benefits for our customers and communities around the world.
GM was the first automaker to sign the BICEP declaration, which asserts that responding to climate change is good business. The declaration is organized by Ceres and its Business for Innovative Climate & Energy Policy (BICEP) coalition.
For three consecutive years, GM has earned a perfect score in the annual Climate Disclosure Project (CDP) climate change disclosure survey and been named to the S&P Climate Disclosure Leadership Index.
GM was among 13 initial companies to join a 2015 White House initiative to demonstrate support for action on climate change by committing $140 billion in new low-carbon investments.
GM was the only North American automaker in 2015 to be named to the Dow Jones Sustainability Index, the leading global benchmark for corporate sustainability.
Many of today’s changes are made possible by connectivity, and GM’s 20 years of OnStar experience give us a commanding lead. By the end of 2016, thanks to OnStar, we expect to have 12 million connected vehicles on four continents. We’re also the industry leader in 4G LTE connectivity. In 2015, we sold seven times more 4G-equipped vehicles than the rest of the industry combined. And this is just the start of the OnStar story.
Since being introduced in 1996, OnStar has now responded to more than 1.2 billion customer requests. Even more exciting is where OnStar will take us in the future, as we build on our growing connections to expand the customer experience beyond the car.
An important change shaping personal mobility is the growth of the sharing economy. Today, an estimated 15 million people around the world use shared mobility services such as ridesharing and car-sharing. By 2020, this number is projected to be more than 50 million, and we plan to be a big part of it.
In 2015, we launched car-sharing programs in Germany, China and New York City. In early 2016, we announced new programs in Chicago and Ann Arbor, Michigan, and combined all our efforts under a single brand called Maven, which offers access to highly personalized, on-demand mobility services. Among other things, Maven’s unique mobile app allows customers to bring their digital lives into the vehicle through services like OnStar, 4G LTE wireless, Apple CarPlay, Android Auto and SiriusXM. Our goal is to offer an ownership-like experience with the convenience of car-sharing.
We’re also very excited about a strategic alliance we announced in early 2016 with Lyft, the fastest-growing ridesharing company in the U.S. We believe the convergence of connectivity, ridesharing and autonomous vehicles will shape the future of personal mobility, and we’re working across multiple fronts to create an integrated network of on-demand autonomous vehicles in the U.S.
In the meantime, Lyft drivers and customers have access to our portfolio of cars and OnStar services, creating a richer ridesharing experience for drivers and passengers alike. We’re also now a preferred provider of short-term-use vehicles to Lyft drivers through a number of U.S. rental hubs.
Another area where we’re changing the industry is alternative propulsion.
Last year, we introduced the second-generation Chevrolet Volt, which is more capable and efficient than the first-generation Volt in every way. Last November, it was named 2016 Green Car of the Year by Green Car Journal, the second time Volt has won this prestigious award.
Building on the technology that enables Volt, we will start production this year on an all-new, all-electric vehicle called the Chevrolet Bolt EV. Bolt EV will feature a range of more than 200 miles and a price around $30,000 after government incentives. By putting truly cutting-edge technology within the reach of so many customers, Bolt EV cracks the code of affordability and long range.
Beyond the Chevrolet Volt and Bolt EV, we’re working to bring other breakthrough vehicles to customers around the world. In 2016, we launched the all-new Chevrolet Malibu Hybrid, which gets combined city-highway fuel economy of 47 miles per gallon, and we plan to introduce an all-new Cadillac plug-in hybrid EV in 2017. In China, we expect to introduce 10 alternative-propulsion vehicles in the next five years, from hybrids and plug-in electrics to pure electric vehicles. We also expect to be the first foreign automaker to open a battery-assembly plant in China.
Active safety technology and rapid advances in connectivity are providing the foundation for increased vehicle automation. At the same time, we are developing fully autonomous vehicles, which will offer customers greater convenience, lower cost and improved safety.
To capitalize on GM’s deep engineering talent and speed the arrival of self-driving cars, we created a new Autonomous and Technology Vehicle Development team this past February. The team will focus on everything from electrical controls and software to safety integration and vehicle development – all crucial elements to realizing the full promise of autonomous vehicles. We’re also excited about our pending acquisition of San Francisco-based Cruise Automation, a leading startup in autonomous technology.
In 2017, we will take an important step toward autonomous vehicles when we introduce “Super Cruise” technology on the Cadillac CT6. Super Cruise is a highway driving automation technology that will enable hands-free driving, even in stop-and-go traffic.
As we work to shape and lead these exciting changes in personal transportation, we are building on and leveraging the strength of our core business.
“Being a global automotive leader, we need to consider not only the vehicles we make, but also how we make them – and today that’s with ever-increasing efficiency.”
Being a global automotive leader, we need to consider not only the vehicles we make, but also how we make them – and today that’s with ever-increasing efficiency. As detailed in this year’s report, we used less energy and water, generated less waste and emitted less carbon to manufacture a vehicle in 2015 than ever before. Our focus on efficiency also extends to materials and logistics, where we saved approximately $2 billion during 2015. These are wins for both our business and the environment.
GM also continues to lead in the area of renewable energy. Today our solar, landfill gas, hydro and waste-to-energy applications make us one of the largest industrial users of renewable energy in the world. To date, we have used renewable energy to reduce the overall carbon footprint of our facilities and save more than $80 million. In 2016, we expect to add 64 megawatts of wind power to our renewable energy portfolio, offsetting part of our energy use in Mexico and at our Arlington, Texas, assembly plant. By obtaining this power through Power Purchase Agreements, we are enabling third-party investment to support the growth of the wind industry.
I’m also proud to say that, through the combined efforts of our manufacturing teams and union partners, GM continues to lead the industry in landfill-free facilities, which now number 131 around the world.
Our commitment to environmental stewardship and social responsibility was underscored in 2015 when we became a signatory to the United Nations Global Compact, the world’s largest corporate responsibility initiative. As a signatory, GM pledges to support and promote the compact’s 10 principles in the areas of human rights, labor, the environment and anti-corruption. Our intent is not only to uphold these principles, which are closely aligned with our core values and practices, but also to seek opportunities to collaborate with others in the U.N. network to advance broader initiatives such as the organization’s Sustainable Development Goals.
GM is also an active participant in a number of key environmental initiatives, including action to engage in the issue of climate change.
With so many changes transforming the global auto industry, it’s more important than ever that we maintain a consistent understanding within GM of who we are and why we are here.
It starts by putting customers at the center of everything we do. Throughout the company, we listen intently to our customers’ needs. We focus on things that delight and add value for the customer, with the ultimate goal of earning customers for life. Quality and safety – both customer and workplace – are foundational commitments, never compromised. We’ve also made a clear commitment to become the industry leader in workplace and vehicle safety, and we are working diligently and making steady progress toward achieving this goal.
We build relationships inside and outside the company by holding ourselves accountable and keeping commitments. Individually and collectively, around the world, we do what we say we are going to do.
And we drive excellence into everything we do. We look over the horizon to anticipate what’s coming, we look for opportunities in every challenge, and we demonstrate the tenacity to win in all things. We act with integrity and take accountability for our results.
I am very proud of the more than 200,000 men and women around the world who make GM what it is today. Our employees are talented, passionate and highly committed to working and winning for our customers.
Going forward, we are working to develop and fully capitalize on the new technologies and services that are transforming today’s global auto industry. These changes will allow us to build on the advances we have already made to improve safety for our customers, save energy and reduce emissions. I believe the opportunities to create lasting change and environmental benefits are greater today than they have ever been, and I’m excited about our work at GM to lead the way.
We look forward to partnering with you, our stakeholders, as we continue to serve and improve the communities in which we live and work around the world. Thank you for your support.
Chairman & CEO
May 10, 2016