SAN FRANCISCO – (COMMERCIAL THREAD) –Engine n ° 1, an investment firm that drives performance by linking corporate social and environmental actions to economic performance, today officially announced its investment and support for General Motors Co. (GM) ‘s vision to transform its business to create a fully electric fleet and increase long-term shareholder value. Along with the announcement, the No.1 engine released a white paper explaining why the auto industry needs to switch to battery electric vehicles (BEVs), what role Original Equipment Manufacturers (OEMs) will play in this transformation and how he believes GM is committed to being the leader in space for decades to come.
“GM’s goal of going 100% electric by 2035 signals one of the biggest transformations in automotive industry history and creates an opportunity to refocus America’s battery supply chain,” he said. said Chris James, Founder of Engine No. 1. “The company’s lead in battery technology, along with Mary Barra and board leadership, creates tremendous benefits. There is a narrative that only tech companies can act quickly to embrace change and win as the world changes. We do not believe this to be true. With the right leadership at the board and executive level, incumbent companies can transform and transform their own industry by investing aggressively in the short term to drive long term value creation. GM has that leadership.
Engine No. 1 had very constructive and collaborative two-way conversations with GM. The Total Enterprise Value Framework places tangible value on GM’s commitment to BEVs and supports the economic rationale for the company’s transition plans.
Engine No. 1 collaborated with automotive expert John Paul MacDuffie, professor of management at Wharton School, on the white paper, which details the need for OEMs to lead the transition from internal combustion engines to all-electric vehicles – and the opportunity for shareholder value increase in this movement.
“For the first time in years, GM is on the verge of regaining market share. The company’s advantages in battery technology and its plans to invest $ 35 billion in BEVs by 2025 position it well among its competitors, ”said Edward Sun, portfolio manager at Engine No. 1. “We believe GM’s BEV innovation will result in superior cars that are faster, quieter, cleaner and more efficient than traditional internal combustion engine (ICEV) vehicles. In addition, OEMs in general have unique capabilities as system integrators., and GM in particular has the right long-term approach, only BEV, to make the transition with products that will appeal even more to all types of customers.
Examples of GM’s emerging leadership in transforming the auto industry include its investments in locating its battery factories, its new Ultium battery platform, and its plan to leverage its scale as a competitive advantage. Additionally, the white paper explains why automakers like GM should benefit from the transition, which is not reflected in the current assessment, especially compared to entry-level competitors.
About engine # 1
Engine No. 1 is an investment company that creates long-term value by linking social and environmental commitments to economic results. The company was founded on the shared belief that a company’s ability to create long-term shareholder value depends on the investments it makes in its employees, customers, communities and the environment. For more information, please visit: www.engine1.com.