Business

General Motors (GM) Calms Investors Amid Electric Vehicle Concerns: A Strategic Outlook for 2025

Published

4 months ago

October 2, 2024

General Motors (GM) is set to reassure investors that there is no cause for alarm regarding the slowing demand for electric vehicles (EVs). In fact, the company is optimistic about improving its profitability by 2025. This new message, expected to be delivered at GM’s upcoming investor day, contrasts with the ambitious goals outlined by CEO Mary Barra in 2021. At that time, Barra projected doubling the company’s revenue to $280 billion by 2030, largely driven by the growth of its EV lineup and its autonomous vehicle unit, Cruise.

Changing Market Conditions and Investor Concerns
The automotive industry is currently navigating turbulent waters, with various factors contributing to investor unease. Concerns have grown over profitability in the EV sector, as automakers face significant losses in EV investments while witnessing declining sales in gas-powered vehicles. Additionally, increased competition from Chinese automakers like BYD has created further pressure on the industry. As a result, many automakers, including GM, have adjusted their strategies to reflect the slower-than-expected transition to electric vehicles.

GM’s Focus on Stability Over Aggressive Growth
At the upcoming investor day, GM will likely emphasize stability over aggressive growth in the EV market. Rory Harvey, GM’s president of global markets, hinted at a strong third-quarter performance, which serves as a positive platform for future discussions. However, according to sources familiar with the matter, GM will stress that EV profit margins are getting closer to investor expectations and may even match those of internal combustion engine (ICE) vehicles in the near future.

Highlighting ICE Models for Profit Growth
While GM will address its EV strategy, it will also place a heavy focus on its ICE vehicles. The automaker is set to launch eight refreshed SUV models by the end of 2025, including the Chevrolet Equinox, Buick Enclave, and Cadillac Escalade. GM believes these new launches will improve profit margins on its traditional gas-powered models, alleviating some concerns about the declining demand for ICE vehicles.

No Changes to Dividends or Stock Buybacks
Despite the positive outlook on profitability, sources have indicated that GM will not announce any changes to its dividend payments or stock buyback program during the investor meeting. This cautious approach reflects GM’s desire to maintain financial stability while navigating the evolving automotive landscape.

Addressing Broader Market Challenges and Investor Sentiment
GM’s investor concerns are not limited to EV profitability. Broader issues in the U.S. auto market, such as rising inventories, affordability challenges, and increasing competition from Chinese automakers, have contributed to the decline in GM’s stock price. Even as the company raises its earnings guidance and delivers positive quarterly results, investors remain wary.

The Importance of Sustainable EV Investment
One key concern among investors is the fear that EV investments could become a financial burden if they do not lead to sustainable profits. Tim Piechowski, a portfolio manager at ACR Alpine Capital Research and a GM investor, emphasized the need for the company to carefully manage its capital expenditures and research and development (R&D) investments in EV technology. He noted that many shareholders want GM to be cautious in investing in technologies that have not yet proven their long-term profitability.

Challenges in China and Cruise Operations
Two former strengths for GM—its operations in China and its autonomous vehicle unit, Cruise—have now become sources of concern for investors. GM has faced significant challenges in China, once a key profit center for the company. CEO Mary Barra recently described the automaker’s Chinese operations as “unsustainable” without major restructuring efforts. GM reported a $104 million loss in the region during the second quarter of 2023, reflecting the growing difficulties in that market.

Cruise Faces Scrutiny
GM’s Cruise unit, which once promised to be a driver of future revenue growth, has also faced setbacks. After an incident in which one of its robotaxis dragged a pedestrian in San Francisco, Cruise’s autonomous operations were suspended. Since then, GM has reintroduced a limited fleet of human-driven vehicles in select U.S. markets. Investors are eager for updates on how GM plans to move forward with Cruise and autonomous technology in general.

GM’s Strategy for Competing in the EV Market
As GM continues to compete with industry leaders like Tesla and Chinese EV manufacturers, its strategy for reducing EV production costs and improving affordability will be a key topic at the investor event. Last month, GM and Hyundai signed a non-binding memorandum of understanding to explore collaboration opportunities. The partnership aims to leverage the companies’ combined strengths to reduce costs and accelerate the delivery of new vehicle technologies to customers.

A Closer Look at Ultium Battery Technology
A central focus of GM’s investor day will be its Ultium battery technology, which powers its latest EV models. Investors will tour GM’s Tennessee battery and EV assembly operations, gaining insight into the company’s advancements in battery technology. GM’s ability to innovate in this area is crucial to its competitiveness in the EV market, where lowering battery costs and increasing range are essential to success.

Conclusion
As General Motors looks ahead to 2025, the company is shifting its narrative from aggressive growth to stability and profitability in both its electric and internal combustion engine vehicles. While the transition to electric vehicles may be slower than initially expected, GM is confident in its ability to navigate these challenges and reassure investors. By addressing key concerns related to EV profitability, ICE vehicle launches, and market competition, GM aims to build long-term value and strengthen its position in the evolving automotive landscape.

Business

10 In-Demand Careers for 2025: Future Proof Your Career

Published

3 weeks ago

December 29, 2024

Wadi

Exploring the Future Job Market: Top Careers to Consider

As we approach 2025, the job market is undergoing significant changes driven by technological advancements, demographic shifts, and evolving consumer needs. According to the World Economic Forum, while approximately 85 million jobs may be replaced by machines, an estimated 97 million new roles are set to emerge. This article highlights ten in-demand careers that are expected to thrive in the coming years.

Key Factors Driving Job Growth

The demand for skilled professionals is being fueled by several key trends, including the rise of digital technology, the need for data analysis, and a growing focus on sustainability. Understanding these trends can help job seekers target their career paths effectively.

Top 10 In-Demand Careers for 2025

1. Software Developer

Software developers are crucial in creating applications and systems that drive businesses forward. Their expertise in programming languages and software design makes them indispensable in today’s digital landscape.Salary Range: 25,000-140,000 baht/month

2. AI & Machine Learning Engineer

With artificial intelligence becoming integral to various industries, AI and machine learning engineers are in high demand. They specialize in developing algorithms and models that enable machines to learn from data.Salary Range: 60,000-80,000 baht/month

3. Data Analyst

Data analysts play a vital role in interpreting complex data sets to inform business decisions. Their ability to derive insights from data helps organizations optimize their strategies and improve performance.Salary Range: 40,000-80,000 baht/month

4. Data Scientist

Data scientists focus on advanced analytics and predictive modeling to provide actionable insights for businesses. They combine statistical knowledge with programming skills to enhance decision-making processes.Salary Range: 35,000-80,000 baht/month

5. Digital Marketing Specialist

Digital marketing specialists leverage online platforms to create effective marketing strategies. Their skills in content creation and data analysis help businesses engage with their target audiences effectively.Salary Range: 30,000-80,000 baht/month

6. Cybersecurity Professional

As cyber threats increase, cybersecurity professionals are essential for protecting organizational data and systems. They implement security measures and respond to incidents to safeguard against breaches.Salary Range: 60,000-100,000 baht/month

7. Cloud Engineer

Cloud engineers design and manage cloud-based infrastructure and services. With the growing adoption of cloud computing, their expertise is crucial for organizations transitioning to cloud environments.Salary Range: 50,000-90,000 baht/month

8. Nurse Practitioner

The healthcare sector is experiencing a surge in demand for nurse practitioners who provide primary care services. Their role is vital in addressing the needs of an aging population and increasing healthcare accessibility.Salary Range: 120,000 baht/month

9. Renewable Energy Technician

As the world shifts towards sustainable energy sources, renewable energy technicians are becoming increasingly important. They install and maintain systems such as solar panels and wind turbines.Salary Range: $46,000/year (approx. 40,000 baht/month)

10. Content Creator

Content creators produce engaging material across various platforms to connect with audiences. Their creativity in writing, video production, and social media management drives engagement and brand awareness.Salary Range: 25,000-50,000 baht/month

Preparing for Future Careers

The job market of 2025 promises exciting opportunities across various sectors driven by technology and sustainability initiatives. By focusing on developing relevant skills for these in-demand careers—such as software development, data analysis, and cybersecurity—individuals can position themselves for success in a rapidly evolving landscape. Embracing continuous learning will be essential for thriving in this dynamic environment.

Business

Thailand Commits to Becoming an AI Learning Hub

Published

1 month ago

December 5, 2024

Wadi

Ministers Announce Plans for AI Governance Collaboration

Thailand is dedicated to advancing global trust in artificial intelligence (AI) governance and establishing itself as a learning hub for AI through collaboration with UNESCO, according to Prasert Jantararuangthong, the Minister of Digital Economy and Society (DES). This initiative aims to enhance the ethical application of AI technologies while fostering skilled professionals in the field.

Goals for AI Workforce Development

The Ministry of Higher Education, Science, Research and Innovation (MHESI) has set ambitious goals to increase the number of AI-skilled workers by adding 30,000 engineers over the next three years. This plan includes generating 100 AI innovations valued at 40 billion baht and promoting AI adoption across 600 agencies nationwide.

Significant Increase in AI Adoption Rates

According to the AI Readiness Measurement 2024 report by the Electronic Transactions Development Agency and the National Science and Technology Development Agency, AI adoption plans among Thai organizations have reached 73.3%, reflecting an increase of nearly 20 percentage points year-on-year. This surge indicates a growing recognition of the importance of AI in various sectors.

Hosting the UNESCO Global Forum on AI Ethics

On Wednesday, the DES Ministry, MHESI, the Education Ministry, and UNESCO announced their partnership to host the 3rd UNESCO Global Forum on the Ethics of AI 2025, themed “Ethical Governance of AI in Motion.” This event is scheduled to take place from June 24 to 27, 2025, in Bangkok and will serve as a platform for knowledge exchange and collaboration on AI governance.

Commitment to Ethical AI Implementation

Prasert emphasized that Thailand’s commitment aligns with UNESCO’s AI Readiness Assessment framework, which is recognized globally. The country has recently introduced key frameworks such as the AI Governance Guideline for Executives and the Generative AI Governance Guideline for Organizations. These resources aim to ensure responsible and transparent implementation of AI at all organizational levels.

Multilateral Collaboration for Developing Countries

The upcoming forum is expected to foster multilateral collaboration and build AI governance capacity in developing countries. It highlights Thailand’s dedication to global trust in AI governance while positioning itself as a leader in ethical AI practices.

Integration of AI Technologies Across Industries

Suphachai Jaismut, vice-minister for MHESI, stated that Thailand is prepared to integrate AI technologies across various industries, driven by a commitment to advancing research and development (R&D). This integration is crucial as Southeast Asia’s digital economy continues to grow rapidly.

Addressing Challenges in the Digital Economy

While advancements in AI infrastructure are promising, challenges such as the digital divide and job displacement due to automation remain significant concerns. Xing Qu, deputy director-general for UNESCO, emphasized that building peace through education, science, and culture is vital in an era where AI increasingly influences societies and economies.

Business

Thailand to Finalise Free Trade Agreement with EFTA by January 2024

Published

2 months ago

December 1, 2024

Ashley Wings

Thailand is preparing to finalise a landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) by January 2024. The agreement marks Thailand’s first FTA with a European trade bloc and is expected to bolster exports, attract investments, and enhance Thailand’s position in the global economy.

EFTA Partnership: A Milestone in Thailand’s Trade Strategy

Who Are EFTA Members?

The EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein, offering Thailand access to lucrative European markets.

Commerce Minister Pichai Naripthaphan highlighted the FTA’s importance, describing it as a pivotal step for economic growth and trade expansion.

“This is Thailand’s inaugural FTA with a European bloc, setting a precedent for modern trade standards and sustainable development goals,” said Pichai.

Comprehensive Scope of the Agreement

What Does the FTA Cover?

The FTA includes 15 broad areas designed to modernise trade relations and foster sustainable development. Key areas include:

Trade in Goods
Rules of Origin
Investment Opportunities
Trade Facilitation
Intellectual Property Rights
Sustainability and SMEs Development

Future Expansion Opportunities

The FTA is seen as a stepping stone toward future trade agreements with other significant partners, including the European Union, advancing Thailand’s global trade ambitions.

Economic Impact of the Thailand-EFTA Trade Partnership

Surging Trade Figures

Between January and October 2023, trade between Thailand and the EFTA exceeded US$10 billion, accounting for 2.03% of Thailand’s global trade and reflecting a 23.22% year-on-year growth.

Key Thai Exports and Imports

Exports to EFTA: Jewellery, watches, canned seafood, machinery, cosmetics, and rice.
Imports from EFTA: Gems, gold, pharmaceuticals, scientific equipment, and fresh seafood.

The agreement is expected to further diversify and increase Thailand’s trade portfolio.

Next Steps: Approval and Implementation

High-Level Signing at WEF Davos

The FTA will be presented to the Thai Cabinet for approval before its official signing at the World Economic Forum (WEF) in Davos, Switzerland, in January 2024. Prime Minister Paetongtarn Shinawatra and Commerce Minister Pichai will attend the signing ceremony.

Ratification and Rollout

Following Parliamentary approval, the agreement will be ratified, paving the way for implementation and significant contributions to Thailand’s GDP growth.

A Strategic Vision for Thailand’s Future

The Thailand-EFTA Free Trade Agreement aligns with Prime Minister Paetongtarn Shinawatra’s vision of positioning Thailand as a global trade hub. By establishing this partnership, Thailand is set to achieve:

Increased export opportunities
Enhanced foreign investment
Strengthened trade ties with Europe

As the January deadline approaches, Thailand’s first European trade agreement symbolizes a bold step toward economic transformation, underscoring its commitment to modernisation, sustainability, and global collaboration.