General Motors CEO Mary Barra on future of auto industry (Full Stream 9/15)
What this covers
General Motors, one of the country’s largest auto manufacturers, recently announced that it is investing over $35 billion through 2025 to expand its electric vehicle portfolio. On Thursday, Sept. 15 at 2:30 p.m. ET, GM’s chair and CEO Mary Barra sits down with The Washington Post’s David Ignatius for a conversation about the company’s investments in more sustainable technologies, the global chip shortage and the future of the auto industry.
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General Motors is executing a comprehensive transition to all-electric vehicles through dedicated platform technology, domestic battery production, and dealer partnerships, positioning the company for profitability while meeting climate goals and creating domestic jobs.
- GM's dedicated Ultium platform enables cost-effective EVs across price points without compromises in range or performance
- Domestic battery cell production (four plants) and supply chain onshoring reduce costs and create over 1,000 jobs per facility
- Dealer partnerships and technology investments (retail platform, data analytics) reduce selling costs and maintain community relationships critical for first-time EV buyers
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GM's Altium platform achieves cost efficiency through scale, enabling the same dedicated platform to support both affordable vehicles (Equinox EV) and premium products (Hummer EV), reducing per-unit development and manufacturing costs.
“I think that's where General Motors scale comes into play. and the fact that, you know, as I said back in 18, we realized we needed a dedicated platform. So, the Altium platform can do vehicles like a an Equinox EV all the way to a super truck. That kind of scale and then the fact that we'll have our own batteries that allows us to get cost down”
General Motors' dedicated EV platform strategy (Altium), initiated in 2018, addresses a fundamental design constraint: converting internal combustion engines to electric vehicles requires compromises on range, performance, or aesthetics, whereas purpose-built EV platforms eliminate these trade-offs.
“back in 2018, we started working on a dedicated platform because we recognized if you try to convert an internal combustion engine to an vehicle to an electric, you have to make compromises. You have to compromise on range or performance. The vehicles that we have coming out, there's no compromises and they're beautiful.”
To achieve 30-40-50% EV market penetration, automakers must appeal to price-sensitive consumers in the $30,000-$35,000 range, not just luxury buyers.
“To really get to 30, 40, 50% EVs being sold, you have to appeal to people that are in that 30 to $35,000 price range.”
A rail strike would have forced GM to close assembly plants within one day because truck frames—large components delivered exclusively by rail—cannot be economically stockpiled, making rail a critical just-in-time supply chain component.
“in the plants that build trucks, uh the a truck is built on a frame. Frames are delivered to the plant by rail. And if you can think of how big a truck frame is, that's not something you you store many of uh you know, to have ready in case the the rail cars aren't um able to deliver. So, that would have had, you know, within the day. It would have had an impact that we would have not had the frame to build the truck.”
GM's successful partnerships with Honda, unlike many historical auto industry joint ventures, are rooted in mutual technical respect and shared cost objectives, creating sustainable collaborative relationships beyond transactional deals.
“at the technical level there's tremendous respect for each other's uh each other's talent and they can work together and and do great things because you know let's face it there's been a lot of uh tried uh you know partnerships JVS projects between auto companies that hasn't hasn't been that successful but because of the the way we started and we keep building on what we do with Honda tremendous respect for the company and the talent and I think It's uh it's recip reciprocated.”
General Motors is building four battery cell manufacturing plants in the United States, each creating 1,000+ jobs, as part of onshoring battery production previously done in Asia.
“we've brought that uh to this country and as I've mentioned, we've said they'll have at least four plants uh in this country building cells. Each of those plants at the rate of the size that we're building um is about is over a thousand jobs each.”
GM is reducing dealer sales costs through technology partnerships (TechOne startup for IT systems and dealer retail platforms) and data analytics, making dealership participation in EV transition economically viable.
“we realized they were spending a lot of money on their IT systems. And so we actually invested in and work with Techon, which is a startup company that has worked on not only the back office systems that the dealers need, but now we have a system called our it's our dealer retail platform, which is how they can do everything online. And and again, it's a system um that will take cost out from an uh from a IT perspective. We've also said, look, we're using data analytics to say, if you're a dealer in this region, here's the vehicles that you should order with these options to be fast movers.”
Safety milestones were established and achieved before Cruise removed the human driver from autonomous vehicles, creating a structured validation process that precedes commercial operation.
“we had safety um uh milestones that we had to achieve before we would take the driver out of the vehicle.”
GM has ambitious EV adoption goals in China and other international markets beyond the U.S., positioning the company for growth in regions with strong and growing EV demand.
“we also have ambitious goals in China and we're looking in our other markets um you know there's several markets where EV um uh interest in EVs and actually the demand for EVs is growing. So we think we'll be well positioned”
General Motors has committed to carbon neutrality by 2040, with major components including: all-electric vehicle production in the U.S. by 2035, renewable energy for all manufacturing plants, and comprehensive decarbonization across all business operations.
“GM has said uh according to my notes that it plans to be carbon neutral by 2040. That's uh an ambitious goal... a big portion of it though because a lot of from a from a car company's perspective is the vehicles that we're producing. And so to get to an allect electric future, as we've said in this country, will be all electric by 2035.”
GM accelerated its carbon neutrality goal from 2050 to 2040 based on engineering analysis demonstrating the feasibility of achieving the target five years earlier than originally planned.
“when we put the goal out originally a couple years ago we said by 2050 and then the team kept working and they said you know we can pull this into 2040 and so that's the work that we continue to do.”
Dealers that commit to EV certification are enthusiastically adopting the transition and making service investments, suggesting that dealer resistance stems from uncertainty rather than fundamental opposition to EVs.
“what I'm finding though with the people who sign up and say, 'Hey, yeah, I want to be a part of the all-electric future.' They're excited and they're making the investments to be able to service the vehicles.”
EV profitability will be achieved gradually: near-term margins will compress due to battery costs, but by the latter part of the decade (2028-2030), EV manufacturing costs will achieve parity with internal combustion engine vehicles, enabling profitable EV production.
“As we get our own batteries in these vehicles, as we ramp these plants up, um each of our our EVs will be profitable. Uh and I think that's going to be something that's important as we continue to work on improving battery technology. in the latter part of the decade is where we start to see that you're going to see parody from where we are from an internal combustion engine.”
The automotive industry has been in a supply-constrained environment since the 2020 pandemic, creating persistent strong demand despite current pricing power, making current price levels unreliable indicators of underlying consumer demand.
“we've been in a supply constrained environment in the auto industry um since since the pandemic first first uh h happened. So in since 2020 we've really been in a supply constrained uh market. So we are still seeing very strong demand even with uh a strong pricing environment as well.”
General Motors acquired Cruise in 2016 when it had 40 employees; Cruise now has 3,000 employees and is the only autonomous driving company currently charging for driverless taxi rides in a dense urban environment (San Francisco).
“Riding with me was Kyle Vod who's uh the CEO and co-founder of Cruz. Uh you know it's a company that we acquired in 2016 when it had 40 people and it now has 3,000. And this is technology that will truly change the world. It'll change uh change the way we move... we're now the only company in a dense urban environment and charging for rides”
The bipartisan infrastructure bill's charging infrastructure investment was critical to EV adoption, making it as important as the CHIPS Act for enabling mass EV market growth.
“the work that was done on the bipartisan infrastructure bill to make sure there's charging infrastructure because when we talk to customers and say, 'Hey, would you consider an electric vehicle?' ... they worry about charging infrastructure. So to really uh make sure that uh EV adoption grows, the charging infrastructure piece was very important of the bipartisan infrastructure act.”
Ninety percent of road fatalities in the United States are caused by driver error, making autonomous vehicles that eliminate human error a potentially transformative safety technology.
“90% of fatalities in the US are caused by driver error. Uh has plays a role in it. So, imagine a world where the vehicle pays attention all the time, knows all the traffic rules, isn't distracted or impaired.”
Dealerships serve a critical trust function for consumers buying their first or only personal vehicle, requiring local relationships and service credibility that online-only sales cannot replicate, making dealer networks essential for mass market EV adoption.
“It's one thing when you're buying an EV and it's your second, third, fourth, or fifth car. It's another thing when you're buying it and it's your only vehicle and you depend on it every day to take care of your family, to get to work, to earn your livelihood. And so, um, that trust that's there of if I have a problem, they're gonna they're going to be there for me to take care of me, they're going to help me understand the technology that's on this vehicle. I think that's hugely valuable.”
GM's renewable energy transition for manufacturing plants provides cost savings, making carbon reduction aligned with financial performance rather than requiring concessionary trade-offs.
“for instance use renewable energies it actually provides a cost savings to us so um I think you know we have a well thoughtout plan”
Once consumers experience driving an electric vehicle and its performance characteristics (instant torque, smooth handling), they will prefer EVs to internal combustion engines and are unlikely to return to ICE vehicles.
“when people get in an electric vehicle and they get to drive it, um, they realize they're not giving anything up. And an electric vehicle has instant torque. And because of the portfolio of, you know, whether it's an affordable vehicle like the Chevrolet Equinox, all the way up to a super truck like the Hummer, luxury like the Cadillac L, giving people those choices and then, you know, letting them drive the vehicles. I think once they drive them they're not want to go they're they are not want to want to go back to an internal combustion vehicle.”
Different dealer segments have widely varying sales volumes (from <50 vehicles/year to 50+ vehicles/month), requiring customized transition strategies rather than uniform mandates.
“at General Motors, we have some dealers that sell five 50 less than 50 vehicles a year. We have some that sell 50, you know, almost a week or at least in a month or more. And so it's that's where we have to give those dealers choices because in some cases it may not make sense for them to make that investment.”
The Biden administration's support for electric vehicles, demonstrated at the Detroit Auto Show, represents positive momentum for the industry, but this support is not guaranteed to persist if political leadership changes.
“Suppose we had a future president who didn't feel so strongly about electric vehicles, who reversed the the momentum that Biden and his administration have made in in this direction. What difference would that make for GM?”
GM dealers are learning to operate with minimal lot inventory by selling pre-order vehicles already allocated to specific customers, eliminating financing risk and reducing working capital requirements.
“Our dealers are also, you know, our dealers are entrepreneurs and so they've also learned how to sell deep into the channel, they know when a vehicle is on its way on a truck, and often every vehicle on that truck by the time it gets to the dealership is sold. Then they don't have as many vehicles on their lot. Frankly, they don't have many at all right now. They're not financing them.”
Cruise will expand driverless taxi services to Phoenix and Austin in fall 2023, with revenue projections of $1 billion by 2025, representing aggressive commercialization of autonomous driving technology.
“You will start this robo taxi service in Phoenix and Austin this fall from what I've read. And you're hoping that cruise will bring in a billion dollars in revenue by 2025.”
Hydrogen fuel cell vehicles will ultimately be part of the transportation solution, justifying joint development with Honda despite primary focus on battery electric vehicles.
“we started working with Honda um on hydrogen fuel cells because we do believe ultimately hydrogen fuel cells will be part of the solution.”
Commodity price headwinds have cost GM approximately $5 billion year-over-year, forcing the company to offset these costs through efficiency improvements and pricing increases to maintain profitability.
“we've seen a lot of headwinds from commodities um you know year overyear to the tune of about 5 billion dollars uh and you know we're working we always work to how do we offset that how do we become more efficient uh but that has led to um you know pricing increases as well”
GM's top priorities as Business Roundtable chair include improving American competitiveness through smart regulation (avoiding regulatory roadblocks), strengthening workforce development and education pipelines, and ensuring business has a voice in the regulatory environment.
“we're working to improve um America's competitiveness uh and to make sure we're making the right investments and we're going to you know, uh make the you know, help the economy become more healthy, improve our competitiveness while making sure um you know that we have a voice in the regulatory environment to make sure we have smart regulation, not something that, you know, puts roadblocks up... there's work we can do of sharing between all the companies to improve workforce development uh education”
Mary Barra believes she became CEO of General Motors because she earned the role based on merit and qualifications, rather than because of her gender, though she recognizes her prominence as a female CEO has inspired women and girls to pursue engineering and science careers.
“I feel I got this role because I earned it not because of my gender but um when people come up to me and they say my daughter is now going to study engineering because you've mot if you can do it she believes she can do that.”
The Chevy Equinox EV will be priced around $30,000, positioning it in the largest market segment, and will include a 17.7-inch display, Super Cruise driver assistance technology, and safety features.
“the Equinox, I'm so proud of that vehicle. It'll be around $30,000, which is in the heart of the market. And that segment is the largest segment of a vehicle sold. And so having a vehicle that's priced right and uh they'll see when they get, you know, get a chance to look at the vehicle a 17in uh 17.7 actually inch display. Uh super cruise will be available. That's our driver assistance technology. There's also a host of safety features on that vehicle.”
GM is solving decarbonization challenges through engineering innovation and cost optimization, maintaining confidence that solutions will be found for any material cost increases or unforeseen obstacles.
“I'm an engineer by degree that's what we do we solve issues so I have confidence that we're going to find solutions to anything that may look like it's going to be a cost increase or something that's you know u material that will look and work and find solutions.”
GM is still experiencing supply constraints from chip shortages and expects this to continue into next year, though the situation is improving quarterly and GM is on track to build 25-30% more vehicles this year.
“every quarter it gets a little better. And, you know, we said this year we would, you know, build significantly more vehicles, 25 to 30% more vehicles. We're on track to do that. It was met with some skepticism at the beginning of the year when we said that, but, you know, we will still at the end of the year and as we enter first quarter of next year, we will still not be uh unconstrained as it relates to a chip situation. So, we'll see it linger into next year, but it is getting better.”
GM provides educational materials and resources (EV Live) to dealers to support dealer knowledge of EV technology, enabling dealers to confidently explain vehicles to customers.
“we're we're providing a lot of material to do that. We have um EV live which provides a lot of information.”
Josh Bolton leads the Business Roundtable staff as an executive director with significant responsibility for organizational strategy and member engagement.
“the very talented staff that's led by Josh Bolton. They do a tremendous job.”
The automotive industry in the U.S. has achieved the highest customer loyalty in the country, suggesting that traditional dealer relationships create significant switching costs and brand attachment.
“General Motors has the highest customer loyalty in this country.”
Mary Barra's approach to potential sexism involves assuming good faith, seeking to understand others' perspective and context, and treating misunderstandings as learning opportunities rather than conflicts.
“I always try to give people the benefit of the doubt, assume goodness. And so when somebody says something you're like, 'Wow, it's a little, you know, but okay, what frame of reference were they coming from? What did they mean?' I mean, if somebody says something that I I feel was, you know, intentional, you know, there's an opportunity to have a conversation. And I always frame that with a let a learning to begin with”
The presidential intervention to avert a rail strike resulted in a tentative agreement, which now requires ratification by union members.
“I think it was great work by all parties involved to get to a tenative agreement and you know I think now the work is to get the agreement ratified”
General Motors' Detroit Auto Show display showcased the entire EV portfolio in one location for the first time, featuring vehicles from mass-market (Chevy Equinox) to premium (Cadillac) to performance (Hummer) segments.
“the show was great for General Motors. was the first time all of our electric vehicle our whole portfolio that's uh you know we're selling right now but but that all of our electric vehicles were in one place from the from the Hummer truck to the uh Chevy Equinox EV Chevy uh Silverado EV the Blazer uh so and and more the the Cadillac”
GM is receiving strong customer response and reservations/hand-raisers for newly revealed electric vehicles across its portfolio, indicating robust consumer demand for its EV offerings.
“and our the orders also or the reservations or the hand raisers also tell that story. So, I think it's going to be significant from that perspective.”
Fuel price declines benefit both GM and end customers, partially offsetting commodity headwinds but not enough to significantly reduce input cost pressure.
“just for all of our transportation we're seeing you know gas prices start to come down that impacts us as well as the end customer”