Mary T. Barra
Chair and Chief Executive Officer at General Motors
Thanks, Ashish, and welcome to General Motors, and good afternoon, everyone. Today, my remarks will focus on the ways in which the disciplined approach to our transformation is fueling momentum that will establish General Motors as an EV and AV leader across our product portfolio, our patented Ultium platform and our supply chain in addition to other initiatives. But I want to begin by thanking our employees, our dealers, our suppliers and our unions for helping us deliver yet another strong quarter, a clear measure of the momentum we have. Our strong earnings in the first quarter were very similar to a year ago, and they show that we deliver on our commitments.
Going forward, we have many revenue and cost opportunities to deliver our full year guidance, which we are affirming today.
Last quarter, we discussed our plans to launch more EVs faster because they are catalysts for our growth. We have been very deliberate in our approach to get EVs right and to get solutions that are scalable and position us for leadership in key segments like pickups, luxury and affordable EVs, and deliver programs and services that support margin expansion. This includes the dedicated EV engineering group we formed in 2019 to develop the Ultium platform, the software organization that we brought together and when we created that same year to generate more reoccurring revenue by leveraging connectivity and the foundation of that is our vehicle intelligence platform and now Ultifi; the EV growth organization we formed in 2020 to focus on the consumer experience and to take out inefficiencies of our distribution system; the three battery plants we are opening in the United States between this summer and 2024 with the fourth plant to be announced shortly; the creation of a sustainable, scalable and North America-focused EV supply chain to control our own destiny; and a manufacturing plant that leverages our talent and our scale, including the existing plants like Factory Zero, Spring Hill, CAMI and Orion; and also our close partnership with Honda, which includes both EVs and AVs.
We are now in a rapid launch cycle because of the investments we've made over the last several years. Taking these steps has allowed us to establish an unparalleled foundation on which to execute and scale. Because of this, our drive to produce 400,000 EVs in North America over the course of '22 and '23 is underway. For example, in the short span of time, the Chevrolet, GMC and Cadillac brands will launch six high-volume EV products into luxury, SUV and truck segments, all enabled by Ultium. We are also working on a fully electric Corvette, as Mark shared yesterday, as well as an electrified Corvette that will arrive next year. And I have to tell you, the response has been overwhelming.
So by the end of 2025, we will have installed capacity to build 1 million EVs in North America, representing approximately $50 billion in annual revenue. And we will have three EV programs in North America, each with annual production volumes of more than 125,000 units with opportunities to expand. This is a great start toward delivering our $90 billion of EV revenue by 2030.
Cadillac will be our first all-electric brand, and its journey began last month with the production launch of the LYRIQ. Unlike all of our EV entries to date, the response has been very strong. We will begin taking orders for the full range of LYRIQ models on May 19, and production at Spring Hill will accelerate through the second half of the year and into 2023. And I have to tell you, I was at the plant last week and the LYRIQ looks absolutely great.
We will also have more affordable models that will be a major source of growth for Chevrolet and Buick. We are quickly regaining momentum with the Bolt EV and EUV now that production has resumed. In fact, we plan to produce more than 50,000 Bolt EVs this year for global markets, including a record 40,000 deliveries in the U.S. The first high-volume Ultium-based SUVs for Chevrolet will launch next year.
Chevrolet has already previewed the all-electric Blazer SS, its first fully electric SS model. We'll reveal the full vehicle in July, and it goes into production mid next year. In early fall, we will reveal the Equinox EV, and the launch is scheduled just after the Blazer EV. With a starting price of around $30,000 MSRP, the Equinox EV is a true white space opportunity for us since most affordable EVs from Chevy's competitors start at $40,000 or more. Of course, our biggest growth opportunity in North America is in trucks. We have led the industry in full-size pickup sales for the last two years, and we will lead in EV pickups as well. We'll do it by leveraging the capability and flexibility of our purpose-built Ultium platform and decades of truck design and engineering expertise as well as extensive customer insights.
The GMC HUMMER EV Pickup is just the beginning. People who have driven the HUMMER EV confirmed it is a super truck. One media influencer said, "You somehow mixed the Raptor, TRX, Bronco and Wrangler all in one package, made it electric and better than all of them." We agree.
March was our best month for the HUMMER EV reservation since we unveiled the SUV a year ago. We now have more than 70,000 reservations for the pickup and SUV models, and we are accelerating production through 2022 and into 2023. You will see many of the HUMMER EV's best attributes available in the Chevrolet Silverado EV, including superior range, faster fast-charging capability, four-wheel steering, Super Cruise and a larger, far more flexible pickup cab and bed compared to our closest competitor.
Just yesterday, we shared that Ultium vehicles, including the HUMMER EV and Silverado EV, have a new patented energy recovery system that uses heat from the battery packs to optimize range, performance, charging times and passenger comfort without adding mass or cost. These are the kinds of Ultium platform innovations that are driving a surge in Silverado EV demand and are an example of the benefits of taking the time to establish a dedicated and scalable platform.
We are now at 140,000 reservations and growing, including retail customers in nearly 400 fleet operators, up from 240 last quarter. Production of the Silverado EV will begin at Factory ZERO in Detroit-Hamtramck in just 11 months, followed by Orion Assembly in 2024. We will begin building preproduction Silverado EVs in a matter of weeks. The supply chain supporting our EV production will also be a competitive advantage for us.
Our strategy is to control our own destiny. So we forge long-term strategic relationships. We have invested alongside industry leaders and start-ups alike. And we are sourcing as much as possible from North America and strong trading partners like Australia. This includes rare earth material, permanent magnets, cathode active material and lithium as well as the cobalt agreement we announced this month with Glencore. We're also in the process of securing additional long-term supply agreements for nickel.
Even as we scale our EV and AV businesses, which currently account for about 80% of our product capital spend, the earnings power of our ICE business will grow. In the first quarter, for example, we launched new versions of the Chevrolet Silverado and the GMC Sierra. These trucks have new designs, technology and improved functionality, including a new 13.4-inch infotainment screen on most models, Super Cruise with hands-free trailering and new off-road and premium models like the Silverado ZR2 and the Sierra Denali Ultimate. To help meet demand, we will add a third shift at our Oshawa assembly plant during the summer to build both light-duty and heavy-duty models.
At the same time, we are executing major reductions in complexity and engineering expense across our ICE portfolio. For example, we compressed the footprint for today's Equinox and Terrain from three to two plants, enabling us to create white space capacity for EV expansion. We also achieved about a 70% parts sharing and reuse on these models, along with more than a 90% reduction in build combinations. We sharply reduced build combinations of the Silverado as well, and we're applying these significant cost avoidance strategies across all of our next-gen ICE programs. For example, our next-generation Traverse, Enclave and Acadia will have one-third fewer unique parts and launch with higher EBIT than today's models.
I'd like to wrap up with an update on Cruise. During the quarter, we took the opportunity to increase our ownership position to approximately 80% because we are extremely bullish on the team's rapid progress toward commercialization. As Kyle shared on our last call, Cruise continues to make great progress safely and deliberately expanding its full driverless operations in San Francisco. Cruise is now operating in about 70% of the city and is moving toward operating 24/7 across the entire city by the end of this year. Already, the fleet has traveled about 40 times the distance from San Francisco to New York City, all in driverless mode and all in a highly complex environment. This includes several hundred rides for members of the public. We'll have more Cruise news to share as it completes a permitting process to charge for rides in San Francisco and as the Cruise Origin launch at Factory ZERO approaches.
And now I'd like to turn the call over to Paul.