Key Highlights

  • GM is targeting a vehicle development time of roughly two years, versus four to five traditionally, without a timeline.
  • GM virtually tested more than 300,000 battery designs for its lithium manganese rich chemistry before building a physical prototype.
  • Eyes-off highway driving starts in 2028 on the Cadillac Escalade IQ, alongside a new vehicle computing platform.
  • An OnStar AI assistant launches in the coming months on the 2027 Cadillac Lyriq through an over-the-air update.

Cutting the Development Cycle

General Motors (NYSE:GM) said on Wednesday it is targeting a vehicle development time of roughly two years from concept to production, compared with a traditional cycle of four to five years. The company did not give a timeline for reaching the goal.

The target was laid out at an event in downtown Manhattan called GM Forward. The Detroit automaker also shared new details of a proprietary AI agent it is releasing under its OnStar brand and plans for a fourth generation of more efficient electric vehicles.

The push comes as Chinese automakers expand outside China with fast development of new technologies and vehicles, and as the US market becomes tougher. A consulting firm estimates that China is bringing vehicles to market twice as fast as traditional automakers, with 40 percent to 50 percent less investment and a 30 percent cost advantage.

How AI Fits Into Development

GM said it is developing a new operating approach for vehicle development that leans on enterprise AI and virtualization. It describes a concurrent engineering model in which teams innovate faster, improve continuously and scale new technologies across the lineup.

As an example, GM said it virtually tested more than 300,000 designs for its lithium manganese rich battery chemistry, known as LMR, before building a single physical prototype. Its chief product officer, a former Tesla (NASDAQ:TSLA) executive who led the event, said LMR is to be the exclusive battery technology for the fourth-generation EVs. GM had previously said it wanted to use the batteries in full-size electric vehicles such as the Chevrolet Silverado and Escalade IQ beginning in 2028.

The same executive said GM is positioned to use AI because of its more than 100 years in the industry and 30 years of OnStar, which have produced a large body of engineering, manufacturing and product data.

Next-Generation Vehicles

GM said its coming vehicles, electric and combustion alike, are to carry 40 times the computing power and up to 50 percent faster cellular connectivity than prior systems. That computing power supports over-the-air updates, onboard diagnostics and AI, as well as automated driving features.

The new vehicle computer launches on the USD 130,000 Cadillac Escalade IQ in 2028 before it reaches other models, including the next generation of EVs. GM said the forthcoming EVs target 25 percent better aerodynamics and 15 percent lower weight, with more compact motors and battery packs.

GM's president said the company remains committed to EVs despite lackluster consumer adoption and billions of dollars in pulled-back investment. He said GM intends to be ready when the US market wants EVs in large numbers.

In-Vehicle AI and Eyes-Off Driving

GM reconfirmed that it plans to launch a proprietary in-vehicle AI assistant through OnStar. It is slated for the 2027 Cadillac Lyriq in the coming months through an over-the-air update, and then for other models. The assistant is to be sold by subscription and is designed to help customers be productive in the car, especially when a vehicle drives itself without requiring occupants to monitor the system.

GM currently uses Google's Gemini model, from Alphabet (NASDAQ:GOOGL), for its in-vehicle assistant. The company has said its own AI is designed to be more integrated with the vehicle.

The company also reiterated plans to launch eyes-off highway driving, which it calls personal autonomy, in 2028. It first outlined that goal a year ago, starting with the Escalade IQ before higher-volume models. It has been five years since Chief Executive Mary Barra said she expected personal autonomous vehicles this decade.

Barra said the developments are building the car of the future. GM's chief product officer declined to compare its systems in detail with Tesla's, but said GM's systems see more through multiple sensor types than a camera-only system. Tesla leads the US EV market in over-the-air updates and automated driving capabilities, where GM has been working to catch up.