General Motors Company (GM) Earnings Call Transcript & Summary

One of the biggest lessons we've learned during this global pandemic is that we are changing the way we think about transportation and how we'll move around our communities in the future. Our next keynoter is on the front lines of this transformation, and she's thinking 4-dimensionally, not just what we need now, but in the decades to come. As our world needs solutions to slow climate change, as global demographics shift and as our transportation patterns continue to evolve, General Motors Chairman and CEO, Mary Barra, and her team are confronting these challenges head on. Under her leadership, the company is united around a vision of a world with zero crashes, zero emissions and zero congestion. It is building the vehicles and supporting the infrastructure to make this vision a reality, and it's creating thousands of new tech jobs and opportunities along the way. GM, a Fortune 500 global company, is investing heavily in electric and self-driving vehicles. It's spending $27 billion through 2025 to develop EVs and AVs, including some that you'll see here at CES. It is also retooling plants to build these vehicles. And to power them, GM and its joint venture partner, LG Energy Solution, are constructing a new battery cell manufacturing facility in Ohio that will employ more than 1,000 workers. GM has been leading electric mobility for a long time. Do you know it helped build the battery electric mobility system for the Apollo 15 lunar rover? Since then, GM has been a leading innovator in electrified vehicles. At CES 2016, Mary unveiled the Chevrolet Bolt EV on the CES keynote stage. It is the industry's first affordable long-range EV, now able to travel 259 miles on a single charge. Today, Mary will give us an in-depth look at GM's strategy to advance sustainable mobility for customers and communities around the world. Laying the foundation for an all-electric, zero emissions future is just the beginning. Please join me in welcoming Mary Barra back to CES.

Hello. Welcome to CES and to GM's Exhibit Zero. We are proud to be part of a reimagined CES and to connect with people more than ever before. We want to use this moment as an opportunity to look forward with optimism and hope. But first, I want to look back because many of us have arrived at this moment tired and wearied by this past year. We see optimism in the vaccines being distributed around the world. But when we reflect on 2020, for many, it will be with sadness and frustration. This time last year, there was reason for optimism, a collective belief in the indisputable science behind climate change was prompting companies to make unprecedented commitments toward reducing carbon emissions. Investors were asking companies to put purpose alongside profit to unlock long-term value. But the coronavirus was starting to spread. As a global company, we tracked its movements, starting in China and then around the world. Our priority was the safety of our employees and our customers. We put protocols in place for our employees, and we work closely with dealers to support online sales and enhance cleaning procedures so they could continue to serve our customers. And just as North America was shutting down, we saw the opportunity to do more. One of General Motors' greatest advantages is our manufacturing expertise and scale. So we came together with ventilator manufacturer Ventec Life Systems, and within 30 days, we had started production of 30,000 critical care ventilators at our Kokomo facility in Indiana. We also used our resources and scale to make and deliver 200 million and counting face masks and other personal protective equipment for frontline workers. The General Motors team showed what is possible with purpose and the will to take action. But in the midst of all of this, George Floyd, Ahmaud Arbery and Breonna Taylor became 3 more names on the growing list of Black Americans who have lost their lives based on the color of their skin. I expressed at that time my impatience and disgust with the fact that the nation seems to be placated by asking why this happened instead of what are we going to do to drive meaningful and deliberate change. I owe my role as CEO to GM's legacy of inclusion, but we knew we could do better, and we would. We announced our intention to be the most inclusive company in the world. We encourage uncomfortable conversations with our own employees. We started an inclusion advisory board. We allocated $10 million for organizations fighting racism, bigotry, discrimination and hatred, which have no place in our world. We took action, as did many others around us. And for all the tragedy and heartache and loss, this is what General Motors wants 2020 to be: a call to action. Because while we are weary and while there is hope, the battle isn't over. The health crisis, racial injustice and climate change persist, and so we must persist. At General Motors, our vision for the future is a world with zero crashes, zero emissions and zero congestion. The key to unlock that vision is electrification. The electrification of global transportation can help reduce emissions, empower the advanced systems and connectivity between vehicles and transportation infrastructure to help reduce congestion and crashes. General Motors pioneered vehicle electrification 25 years ago and introduced the world's first affordable long-range EV, the Chevrolet Bolt, right here at CES. But global EV market penetration stands around 3%. We believe that is all about to change. At GM, we believe that after one of the most difficult years in recent history, this moment will prove to be an inflection point, the moment when our world's reliance on gas and diesel-powered vehicles will begin transitioning to an all-electric future. And GM intends to lead that change not only to help accelerate the rollout of more electric vehicles, but to help ensure an equitable and inclusive transition to a net zero carbon future to advance a safer world for all. We believe we have the technology, the talent and the ambition to deliver on that commitment, to challenge perceptions, inspire drivers and lead the world into a new era. We are repositioning General Motors to meet this moment as our company has rallied to meet so many moments before to signal the start of a new chapter in our history. We're evolving our brand identity and launching a campaign intended to inspire a new generation of drivers, setting a tone of optimism and inclusion. And where GM forges a path, Chevrolet, GMC, Cadillac and Buick will follow with electric vehicles and experiences that help put everyone in an EV. Over the course of this presentation, we will share the reasons why we feel so much confidence and optimism, starting with the advances in technology that are helping accelerate our vision and the GM Ultium platform.

Ultium is the world's first hyperscale electrical vehicle platform with the power to make almost any vehicle an electric vehicle, a combination of groundbreaking battery architecture, highly flexible electrical propulsion systems and a common high-energy battery cell that will power our entire range of next-generation electrical vehicles. It all starts with the battery chemistry. Lithium ion batteries typically use a blend of nickel, manganese and cobalt to produce reliable power. Ultium's battery chemistry reduces reliance on cobalt by 70% through adding aluminum. This reduction in cost also addresses the challenges of sourcing sufficient cobalt to match the growth in demand as the number of EVs on the road increases. The foundation of our platform approach is a single, common cell design that can be used across all our vehicles. This will be the best large-format cells in the industry, optimized to provide sufficient power for multiple vehicle designs. And we're manufacturing those cells in-house as part of a joint venture with LG Chem. The cells will produce 60% more energy capacity than our existing electrical battery cells and use a flat rectangular pouch design that reduces the space between cells and can be stacked more efficiently into modules for higher energy density in a smaller space. Vertical stacking of cells within modules helps us build trucks, SUVs and large crossovers. Horizontal stacking enable low-slung performance vehicles. And in between, we have the platform for midsize and compact crossovers. The module themselves are state of art, using 90% less wiring than our current batteries to communicate between the cells, increasing the amount of power available per square inch. General Motors will be the first automaker to use an almost completely wireless battery management system for its production electrical vehicles. The system monitors and balances the cell chemistry on a constant basis, ensuring optimal performance and charging capacity. Finally, the modules are placed into the vehicle's battery pack, a structural enclosure which doubles as part of the vehicle's chassis and protects the cell from damage in the event of a crash. We can use 6, 8, 10 or double stack up to 24 modules in a single pack depending on the power requirements of the vehicle. The end result of all these innovations is a battery that will produce up to 450 miles of range on a single charge and nearly 40% less cost and 25% less weight than our current EV batteries. We'll combine all these innovations with an incredibly flexible propulsion system called Ultium Drive, which uses 5 interchangeable drive units to deliver front, rear or all-wheel drive from a single system. The Ultium platform is a breakthrough in electric vehicle technology, and we are not finished. We are working on our next-gen high-energy battery chemistry that will reduce the reliance on cobalt and nickel even further while reducing cost by 60% compared to the current batteries. We estimate these [ lithium metal ] batteries will deliver twice the energy density of even the Ultium battery cell, providing 500- to 600- mile range on a single charge. Once you have the power, you have to distribute that power to the vehicle's internal system. Modern electrical vehicles are not only electrical propulsion system. They contain many advanced technologies like driver assist features that draw on the vehicle's electrical bandwidth. GM's vehicle intelligence platform provide the software-enabling layer that keeps everything working. It is a new innovative digital electrical architecture that provides more rapid communications between the vehicle's system and to the outside world and is capable of managing 4.5 terabyte data processing power per hour, a fivefold increase in capability over GM's current electrical architecture. VIP will serve as the software foundation for our EV ambitions and will be integrated into nearly every GM vehicle globally by 2023. We are incredibly excited by the possibility Ultium and VIP provide to General Motors not only in terms of converting our existing vehicles to all-electric, but in terms of new capabilities in vehicle performance and the customer experience.

As Mei said, the opportunities presented by advancements in technology are enormous. The mass adoption of electric vehicles will be a transformative moment in our history. But for most drivers, it will be an entirely new experience. We want to reimagine the whole concept of vehicle ownership and driving, and we're calling that reimagined experience Ultifi. Ultifi is a promise of a more personal EV experience, putting you in control; a single unified platform that simplifies discovery, education and management of your GM products and services, making it easier for you to explore EV options like make a reservation, get transparent pricing, purchase a vehicle online or visit a local dealer to complete your purchase in person. It will provide owners with a unique customer ID they can use to set up an online account, set preferences, book a service or make additional purchases. The vehicle intelligence platform gives us the ability to deliver over-the-air updates to your vehicle. You should expect both ongoing free updates as well as opportunities to purchase premium content and feature upgrades as well as personalization options, media streaming services and third-party applications. And at the center of it all will be the all-new mobile app experiences: myCadillac, myChevrolet, myGMC and myBuick, all coming in spring. These apps provide a remote control for your vehicle that will continually evolve and advance over time. You will be able to view your account, manage payments and collect rewards, all right from the app. And the new family sharing feature will provide access to the vehicle for up to 8 family members. Perhaps most importantly for our EV enthusiasts is the energy tab. It will help new and long-time EV drivers accommodate battery charging more easily into their lifestyle. Our goal is to have your home charging unit installed before you even take possession of your vehicle so you can plug-in your car at night just the same as you do your mobile phone. If you need a quick charge while you're out driving, we'll be able to help you find the nearest charge station, set up a payment and start charging, all in the same app. Ultium-powered vehicles charge very quickly. They will provide up to 90 miles in a 10-minute charge, which means you'll be able to easily top up whenever you're on the move. Another way we're reimagining the future of the driving experience to focus more on you, the driver, is via OnStar. OnStar has provided remote services to GM drivers for 25 years. We hear countless stories of OnStar subscribers relying on the button inside their vehicle at some of the most crucial moments in their lives. Today, OnStar receives 150,000 calls a day, more than 6,000 automatic crash response notifications and 120,000 remote vehicle unlock requests every month. And last year, we announced that OnStar was extending its lifeline even further with the introduction of the OnStar Guardian app, which places OnStar services on your mobile phone, providing access to an emergency adviser wherever you are and whoever's car you're driving or riding in as well as extending services to loved ones for added peace of mind. In addition, and more recently, we announced OnStar Insurance. In the short term, it will make it easy to purchase insurance from GM through the OnStar Insurance services. But in the future, it will leverage the vehicle's OnStar telematics data to personalize insurance premium based on your individual driving behavior, giving people the ability to directly influence the cost of owning and operating their vehicle. And over time, we will have the ability to integrate automatic crash response with OnStar Insurance to help streamline the entire claim process. We have very big plans. As vehicles become more intelligent, more of the focus can turn to occupants and their sense of personal enjoyment, freedom and control. Nowhere is that more evident than with Super Cruise. Super Cruise is the industry's first truly hands-free driving assistance system. It's unique in that it uses a driver attention system to detect if the driver is paying sufficient attention to the road ahead. Now if not, the steering wheel light bar flashers to prompt the driver to return their attention to the road. The driver attention system makes clear when Super Cruise is engaged and what the driver's responsibilities are. As a result, drivers can more simply integrate to the journey ahead. And once again, thanks to the vehicle intelligence platform, we have the ability to send new Super Cruise features directly to the vehicle via remote software updates. The customer response to Super Cruise has been stunning. 85% of customers driving a Cadillac CT6 said that they would prefer or only consider a vehicle equipped with Super Cruise for any future vehicle purchase. And that's why we're making Super Cruise a much bigger part of the EV experience. We're bringing Super Cruise to 22 GM vehicles by 2023, including Chevrolet Bolt EUV. Chevrolet Bolt EV gave many people their first experience of living with an EV, from quick acceleration to convenient charging at home. And we will continue to reimagine this vehicle with fresh design, more technology and new features. But as we think about the future, we want to build on that strong foundation. The Chevrolet Bolt EUV will share the original Bolt's reputation for fun, functionality and purposeful technology and will be the first Chevrolet and GM's first EV to feature Super Cruise driving, making one of our most advanced technologies accessible to even more drivers. We're planning to share more details about the Bolt EUV very soon, and we're excited to give more people the option to try Super Cruise. As you can see, we're investing to not only show you can drive electric but you can love driving electric.

All of this advanced technology puts GM in an incredible position to help accelerate the adoption of electric vehicles. We're spending more than $27 billion on our electric and autonomous vehicle programs by 2025. And we feel confident that this emphasis we are placing on a more personalized driving experience will make our future EV some of the most enjoyable and exciting vehicles we've ever made. Let's take a look at what our design and engineering teams have in-store for you.

Whether you're talking about a smartphone, a TV or a car, design is influenced by manufacturing, materials and components. As those elements change, design changes. The start of the EV year represents the most significant change in vehicle design since the 1920s when GM's first Chief Designer, Harley Earl, developed the modern concept of vehicle design. Earl pioneered the idea that design could create an emotional connection with the vehicle, and these connections could be as diverse as people's individual tastes. Since then, vehicle technology and manufacturing have come a long way, but those design principles remain the same. Initial electric vehicle designs were intended to signal that this is an EV for people making that choice. Now as the world prepares to go all-electric, we're drawing a line in the sand and rethinking how an entire range of electric vehicles should look and feel. As Mei demonstrated earlier, Ultium's modularity provides incredible flexibility with 3 main architectural configurations to be used across Chevrolet, Buick, GMC and Cadillac. We are able to accelerate the design process, helping to deliver a full vehicle lineup in record time. Meanwhile, VIP's electrical bandwidth and connectivity gives designers the power to reimagine the personality of the vehicle in light, color and sound. Now over the next 5 years, General Motors will introduce 30 new EVs globally, representing a range of options, whatever your priorities. That includes the refreshed Chevrolet Bolt EV and the new Bolt EUV, both in dealerships by this summer. Chevrolet led the charge putting more drivers in an EV, and the Ultium platform will allow Chevrolet to further expand its range of electric vehicles to full-size pickup trucks, compact crossovers and even high-performance vehicles. Chevrolet's well-established expertise building vehicles that combine compelling design, useful technology and performance have resulted in some of GM's best-selling vehicles. And we'll continue to bring more choice and broader adoption of electric vehicle technology to even more drivers. There will also be new vehicles from Buick with a refreshed strategy based on electrification, connectivity and intelligent driving. Buick is now entering its third decade in China, the world's largest EV market, and we'll build on the growing popularity in China of the Buick Velite family of electric vehicles with 3 new Ultium-powered EVs, adding a new crossover and SUVs to the lineup, including 2 you see in the distance behind me. And of course, we've already announced new electric vehicles from GMC and Cadillac: the GMC HUMMER EV and the Cadillac LYRIQ. Today, we want to share more details about those vehicles and to help give some sense of what you can expect from the new lineup of EVs coming from GM over the next 5 years. And we want to reveal details about a vehicle we've never shared before, the Cadillac CELESTIQ.

A great deal has been said about the GMC HUMMER EV since it was first unveiled in October. The irony of introducing HUMMER as an EV is not lost on us. This vehicle is the clearest articulation of exactly what we mean when we say any vehicle can be an EV. This is the world's first all-electric supertruck. GMC HUMMER EV will be capable of 0 to 60 in about 3 seconds with 1,000 horsepower and 11,500 pound feet of torque. It has a crazy amount of power. It celebrates the performance possibilities of electric propulsion. This is a truck you want to drive because it delivers performance in a way that no other truck can match, and it happens to have zero emissions. Two things in particular I want to share with you that we haven't really talked about before: Terrain mode one-pedal driving and the Bose Electric Vehicle Sound Enhancement technology. In Terrain Mode, the GMC HUMMER EV offers one-pedal driving for precision handling at low speeds while off-roading and rock crawling. It combines the fine control of the immediate torque provided by the EV propulsion system and the friction brakes to deliver a level of modulation that is beyond anything we could deliver from a gas or diesel-powered engine. It is a smooth experience, providing finely modulated power control that can dominate the most difficult terrain. And if you will love the power off-road, wait until you try it on-road. Watts to Freedom mode builds an entire experience around that 0 to 60 sprint. The double press of the traction control button triggers a request to acknowledge you were about to do something special. Acknowledgment causes the vehicle to lower and the battery electronics temperatures to be optimized in preparation for full power delivery. The driver coach tells you to apply the brake as the seat and the subwoofers start to shake. Then you apply the accelerator, and once you reach the required levels, you let the break go and hold on. I've experienced the thrill of jumping out of a plane at 30,000 feet. In my opinion, this is better. But how do you create the sensory explosion to accompany motors turned up to 11? We worked with Bose. Bose Electric Vehicle Sound Enhancement technology makes its debut in the GMC HUMMER EV. It incorporates guitar riffs, high-frequency feedback and inspiration from Formula E motorsports to communicate the sensation of power and torque that you've unlocked in Watts to Freedom. It's a truly immersive sensory experience that brings you in direct contact with your vehicle, and we can't wait to share it with you later this year.

If the GMC HUMMER EV is power and dominance, the Cadillac LYRIQ is the artful integration of technology for a most intimate driving experience. Introducing our new face of Cadillac. The LYRIQ is an uncompromising SUV, the embodiment of Cadillac innovation and a showcase of technologies you will see repeated over future Cadillac EVS. We took advantage of the quiet that comes with Ultium powered EVs to curate an entirely new sensory experience and the inspiration of VIP's electrical bandwidth to reimagine what it means to always be connected to your vehicle. It starts as you approach the Cadillac LYRIQ, a layering of technology and choreography of light that draws you inside and makes this very intimately your vehicle. Recognizing its driver, the LYRIQ prepares the cabin for the journey and continues that rhythm of light from the exterior to the interior. Once you are inside, you understand what we mean by artful integration. The curved 33-inch diagonal advanced LED display provides a customizable user interface with the capability to display 1 billion colors. We work with Territory Studio and Rightpoint, 2 companies with unique experience in creative strategy, design and technology to help challenge expectations and bring Cadillac's vision to life. And while we've announced that the GMC HUMMER EV will leverage Epic Games' Unreal Engine used to make Fortnite and [ ST Note ], we can announce that we will also be using the technology in the Cadillac LYRIQ to bring display information to life and engaging 3D perspective. That layering of technology continues into the dual-plane augmented reality heads-up display that incorporates navigation directly into your field of view. And combined with our next-generation Super Cruise driver assistance technology helps provide confidence and control. My role at General Motors is lead designer for choreographed experiences in addition to Cadillac lighting. That role did not exist before electrification gave vehicle design the opportunity to rethink our relationship with our vehicles. Now it signals a new future for the interaction of technology and the senses.

If the Cadillac LYRIQ is the new face of Cadillac innovation, I want to introduce its ultimate expression, the all-new Cadillac CELESTIQ. Working on the Cadillac CELESTIQ is a designer's dream. The architecture of the Ultium platform carved out new space and gave us the freedom to integrate more technology. The result is a dramatic presence with the low profile and real work proportions. Each vehicle offers a curated selection of materials, which are crafted by hand for the ultimate luxury experience. And with all-wheel drive, 4-wheel steering and a full glass roof, it celebrates the extraordinary. Cadillac CELESTIQ extends the artful integration of technology you already saw in the LYRIQ but reaches new heights. That roof will be our first-to-feature 4-quadrant suspended particle device smart glass, allowing each occupant of the vehicle to set their own level of transparency, while the tint of the glass colors to match the ambience and the mood of the interior. That equal and individual experience for each occupant will be a signature aspect of the Cadillac CELESTIQ. The driver and front seat passenger enjoy a pillar-to-pillar display that brings the outside, inside, while rear seat passengers have personalized entertainment screens with active privacy and console screens that separate individualized comfort settings from entertainment displays to minimize distractions. Cadillac CELESTIQ represents the artful integration of technology to reimagine what it means to be a passenger. We can't wait to reveal more soon.

Hopefully, the GMC HUMMER EV, Cadillac LYRIQ and the Cadillac CELESTIQ along with the Chevrolet Bolt EUV that Travis announced earlier gives you some sense of how we're approaching this new chapter in GM's history: the layering of technologies to create sensory and emotional connections which immerse the occupants in the distinct purpose and personality of that vehicle. Whether that's the power of the GMC HUMMER EV or the luxury of the Cadillacs, each vehicle represents a bespoke and curated experience. And as technology continues to evolve, we intend to continue this design trajectory, delivering experiences that reflect the possibilities and the probabilities of future transportation. Now let me introduce you to the Cadillac Halo portfolio. This is a design concept that provides a social space for a group of friends or family to spend time together on their way to a destination. The vertical light signature is choreographed to greet and draw passengers inside. The expansive glass roof keeps the group connected to the outside but encourages eyes to turn inside to focus on one another and personal well-being. Biometric sensors read passengers' vital signs to adjust temperature, humidity, lighting, ambient noise and even aromatics for optimal comfort, while voice control and hand-gesture recognition makes adjusting the interior effortless. It's a space for sitting back, relaxing and arriving in style. The vertical takeoff and landing drone, or VTOL, is GM's first foray into air mobility. We are preparing for a world where advances in electric and autonomous technology make personal air travel possible. It is a concept designed for the moment when time is of essence and convenience is everything. You've been at the office and now you need to get to a meeting across town. The VTOL meets you on the roof and drops you at the verti-port closest to your destination. It uses a 90 kilowatt-hour EV motor to power 4 rotors as well as air-to-air and air-to-ground communications. As a passenger, it represents personal space and a panoramic view of the world passing beneath you and is a glimpse of what autonomy and Cadillac luxury might look like in the not-too-distant future. We have other concepts coming, including a luxurious 2-seater designed for you and someone very special to decompress, relax and enjoy a multisensory experience choreographed for more intimate journeys, each concept reflecting the needs and wants of the passengers at a particular moment in time and GM's vision of the future of transportation. This is a special moment for General Motors as we reimagine the future of personal transportation for the next 5 years and beyond, leveraging technology to create a consistent GM brand promise while also delivering an unrivaled range of electric vehicles across our brands, each with unique personalities that reflect the unique priorities of the millions of customers we serve. Even if you've never considered driving an EV before, over the next 5 years, GMC, Cadillac, Buick and Chevrolet intend to present you with a vehicle that you'll fall in love with, and there's a good chance it will be an EV.

We hope by now that you are starting to see how we intend to deliver on our vision of zero emissions, not just by making zero-emission vehicles, but by using the transition to an all-electric vehicle future as an opportunity to reimagine how we move, making our EV future something people race toward. But we're not stopping there because this is also an opportunity to reimagine how goods are moved. I'm pleased to announce BrightDrop, a new business from General Motors that reimagines commercial delivery and logistics for an all-electric future. BrightDrop provides an ecosystem of smart, connected products, including electric vehicles and software-enabled services, offering commercial delivery companies a platform for sustainable growth. Families manage a few cars at a time. Delivery companies manage thousands, even hundreds of thousands of vehicles. They are on the front lines of efforts to reduce vehicle emissions and congestion as many countries around the world set limits on commercial delivery vehicles while at the same time, trying to meet rapidly rising demand for e-commerce services. That means processing millions of packages coming from an increasingly diverse number of businesses while meeting changing expectations about how long people are willing to wait for those packages to reach their door. The pandemic has only accelerated those challenges as this sector became our lifeline to goods and services we could no longer access in-person. BrightDrop represents an all-new approach with a dedicated platform leveraging Ultium to provide precisely what our customers are asking for. It aims to provide this sector with products, software and services as well as support that they need to move goods from warehouse shelf to front door as efficiently and safely as possible.

BrightDrop's goal is to transform delivery and logistics for an all-electric future. It includes an expanding range of connected, all-electric products and the tools and services to make those products work together efficiently, intelligently and all with less impact on the environment. It starts with the BrightDrop EP1, an electric-propelled pallet that helps reduce the time and physical effort required for couriers to get goods from the delivery van to the front door. Goods are consolidated and loaded into the EP1 at the warehouse based on their destination. The BrightDrop mobile asset management platform connects to the EP1s so key information like location, battery status and more can be viewed remotely. The EP1's electric motor makes it easier for couriers to move around. It speed adjusts up to 3 miles per hour depending on the courier's walking pace. The pallets are purpose designed for optimal loading into delivery vehicles and can be tethered together for larger drops, helping to reduce errors, secure packages, reduce the strain on drivers and enable more efficient delivery. Don't be surprised to see couriers leading EP1s down our sidewalks in the next few months. Then, of course, we have the all-new BrightDrop EV600 electric van. The BrightDrop EV600 will be built on the Ultium platform using the same high-energy modular architecture and is targeted to provide up to 250 miles of range while optimizing available cargo space. It's lightweight, purpose-built to carry BrightDrop EP1s. It has segment-leading active safety features and zero emissions. It will also be part of the connected family of BrightDrop products which delivery companies can manage remotely via our BrightDrop fleet management platform to help optimize vehicle use and oversee energy management. The first EV600s will be delivered towards the end of this year. The BrightDrop integrated ecosystem will leverage a combination of BrightDrop sales and service network as well as a newly established BrightDrop dealer network for sales and service support for the EV600s. And the BrightDrop EP1 and EV600 are just the first of an expanding range of products that will connect seamlessly for increasing efficiency. A number of BrightDrop concepts are being explored, such as a medium distance solution that transports multiple EP1s and a rapid load delivery concept designed to load and unload EP1s on and off the vehicle with ease, freeing up valuable curb space quickly. And just like our consumer vehicles, we're committed to help make the transition to a smarter, all-electric future as easy as possible. To support these products and services, we will help customers set up charging infrastructure and provide access to parts, service and more. BrightDrop is a single destination for delivery companies that want to make the transition to a more sustainable future, moving goods more efficiently to help reduce congestion and lower emissions, helping electrify an industry.

BrightDrop is the result of working with commercial customers, listening to their challenges and leveraging our technology to help meet their needs. To further innovation, BrightDrop has partnered with another iconic American company and a global leader of express distribution, FedEx Express. I've asked Richard Smith of FedEx Express to tell you more.

Thanks, Mary. FedEx has spent the last several years implementing innovative solutions to prepare our business for the exponential growth in e-commerce. That forward-looking effort really paid off for our customers during the pandemic. In the last 9 months, we've seen e-commerce accelerate to levels that weren't anticipated for another 3 to 5 years. And as people have experienced the ease with which they can now get an incredible range of goods delivered directly to their doors, we don't expect them to go back when the pandemic is over. To put it into context, we expect U.S. residential deliveries to reach 100 million packages a day by 2023, which is 3 years earlier than previously estimated. We also continue to see growth in the need for express, time-definite delivery in industries like health care, technology and aerospace and automotive manufacturing. Right now, we are shipping hundreds of thousands of doses and soon to be millions of COVID-19 vaccines through our Express network. So our need for reliable, sustainable transportation has never been more important. BrightDrop is a perfect example of the innovations we are adopting to continue to transform our company. BrightDrop products will help FedEx Express handle unprecedented demand, improve the safety, security and timeliness of deliveries, reduce our environmental impact and protect the well-being of our couriers. In an initial pilot we ran with the BrightDrop EP1, our FedEx Express couriers were able to effectively and safely handle 25% more packages per day. The feedback from our team members has been excellent. The EP1s were easy to maneuver and help to reduce physical strength. We're so pleased, we have a second EP1 pilot planned to take place this quarter, and we're expecting the results to be even more impactful. We are also planning to add to our existing electric vehicle fleet by partnering with BrightDrop to introduce the EV600s to our lineup. We are the first company slated to receive the EV600, pictured here behind me, and plan to expand upon that initial commitment to rapidly adopt electricity as a vehicle fuel for years to come. It's part of our FedEx EarthSmart program and our sustainability strategy of reduce, replace and revolutionize. In this, it does all 3, especially revolutionizing for a future with less emissions, and it is consistent with our role of connecting people and possibilities around the world responsibly and resourcefully. We believe BrightDrop will allow for improvements in efficiency at scale, lowering operational cost per mile while improving services for our customers and, of course, solve real issues around emissions and congestion.

Thanks, Richard. This is just the beginning of what FedEx Express and BrightDrop will do together. And I couldn't be more optimistic for the strides we will take to build a smarter, more sustainable future for the delivery industry. As BrightDrop demonstrates and as you saw with the GMC HUMMER EV, the Cadillac LYRIQ and the Cadillac CELESTIQ, electrification will be a catalyst for a range of new experiences, and that includes how autonomous vehicles will transform our daily experience. Leading the charge on autonomous vehicle development is Cruise, the self-driving start-up backed by General Motors. After years of development, Cruise now has reached the point where it has removed the human driver from behind the wheel, the true benchmark of a self-driving car, and is now testing fully driverless cars on the streets of San Francisco. I've asked Cruise Co-Founder, Kyle Vogt, to give you an update on the incredible progress made by Cruise while the pandemic has been raging all around us.

Mary, thanks for having me. This is going to be fun. I'm going to start by talking a little bit about what we accomplished in 2020 despite the pandemic and then what you can expect from us in 2021 and years to come. So if you roll back the clock to the very beginning of the year, we unveiled the Cruise Origin, which was our first purpose-built, all-electric autonomous vehicle for the rideshare and also delivery businesses. And that was great because it gave us a chance to show the world the vehicle and the platform on which our technology is going to be deployed at scale to unlock all the great benefits of autonomous vehicle technology. And after that, we announced that this vehicle, Cruise Origin, is going to be built at Factory ZERO, which is GM's plant dedicated to building vehicles powered by Ultium battery technology. And that's important to us because we're not really interested by the potential impact that a couple hundred vehicles can have in one city. That's nice, even if those vehicles are doing great things. But what matters to us at Cruise and for our mission is to use Factory ZERO to build tens of thousands or even hundreds of thousands of Cruise Origins so that all those vehicles can be out there touching people's lives with a form of transportation that's safer and more affordable and more accessible. And so that's what we're looking forward to with Factory ZERO. And then, of course, later in the year, roll the clock forward a little bit and the pandemic hit, we took a look at ourselves and the company and thought about what we could do and we decided to repurpose our fleet to deliver food for communities in need in San Francisco. And so we found 2 local organizations, the SF-Marin Food Bank and SF New Deal, and repurposed our fleet to do deliveries. And to date, we've done over 140,000 meal deliveries, and that's awesome. That makes us feel really good at Cruise. And even though that's a big number, we know it's just the tip of the iceberg for the potential impact to that positive -- the positive impact autonomous vehicles can have on our communities. Then a little bit later in the year, we announced our partnership with Walmart, the world's largest retailer, to do a pilot of grocery delivery in Scottsdale, Arizona. And that shows the versatility of the technology we're building and also one of the primary uses of the Cruise Origin when we started to produce that at scale. Then later on, we had a really important milestone both for Cruise and the industry and also for me personally, which is our first fully autonomous drive with no human backup driver, nobody behind the wheel, on the streets of San Francisco. And that was a big deal. Even though our cars are driving around San Francisco all the time without anyone touching the wheel, doing it with no human backup driver meant that we had done all the validation, testing, legal, lots -- more testing work to make sure that we have a product that was safe to deploy. And that was in no small part due to our partnership with GM in the 5 months of testing and trial runs that we did at the Milford Proving Grounds. So thank you, GM. That was really great. And of course, all throughout the year, we used our fleet of electric vehicles, electric autonomous vehicles to collect hundreds of thousands of miles of autonomous driving. And that's useful not just for the data that helps us train our AI or for the -- providing feedback for our engineering teams, but also to give a sense of how the general public and other drivers and our potential customers are going to react to autonomous vehicle technology. And that's really important as we look forward to 2021 and beyond when we do early commercialization of this technology. And as you might expect, we still have plenty of work to do until any of you can ride in a Cruise Origin whenever you want. But in 2020, we burned down a lot of the big technical and scientific and engineering work and risk that could have held us back. And as you know, our mission is not just to build self-driving car technology or build a self-driving car. It's to build a form of transportation that's safer, cleaner and more affordable and more accessible than what exists today. And we're on the verge of doing that thanks to our partnership with GM. Of course, many years in the making. So many more good things to come. And as I look to 2021 and beyond, specifically in 2021, you're going to see our product become more tangible, more visible. Some of you might get to use it. And we're really, really excited to bring all of you along with us on that journey. So thank you.

I hope that what we've shared with you today gives you the same confidence and excitement about our future of electric and autonomous vehicles that we all share at General Motors, confidence that the pieces are now in place and excitement for the prospect of a world that is more personal, moves better and contains experiences none of us have ever had before and all of us will be able to enjoy. And there's that important word: All. Because if this ambition, talent and technology doesn't add up to a safer world for all, then it isn't better. We want everyone to have the opportunity to join us and join the movement. We want young girls of color who want to be software technicians or EV and AV engineers to know they have a future at General Motors. We want everyone to have the opportunity to drive the vehicles we're building, and we want every community to benefit from safer, quieter, greener streets. Last year, the Business Roundtable created a special board committee on racial equity and justice. The Business Roundtable is a nonprofit association whose members are CEOs of major U.S. companies. As part of the effort to address ongoing racial inequities in the United States, I was asked to lead a special subcommittee focused on reconciling disparities in education and workforce. Inequities and education disproportionately affect many low income and minority communities, which can put children from these communities at a disadvantage as early as Grade 3. One thing I've learned through my work with the Business Roundtable, before third grade, we learn to read. After third grade, we read to learn. If we're not helping address learning disadvantages early in life, we're setting children up for workforce disadvantages for the rest of their lives. The school closures that have impacted millions of children around the world as a result of the pandemic have exacerbated these problems, creating a potential crisis in the lives and livelihoods of future generations. So as part of advancing a safer world for all, General Motors is donating $1 million to the Khan Academy, one of the world's leaders in online learning, to further its work in bringing best-in-class education to everyone, providing training for educators to help adapt to remote learning, translating existing resources to Spanish and bringing them to Spanish-speaking communities, further aligning distance learning resources across more school districts, creating a new STEM curriculum for students in the second grade and providing teachers with data-driven, real-time feedback to meet students where they are and bring them up to the standards required in their grades. It is a very proud moment for me to stand here today representing 164,000 General Motors employees at an inflection point for our company's history and an inflection point for our society. I hope you've heard enough to join us. Thank you for your time, and please stay safe.