GM CEO Defends Trump's Auto Tariffs, Discusses China EV Advancement and More | WSJ

Mary Barra, CEO of General Motors, discusses the company's strategic response to industry challenges such as tariffs, EV adoption, and competition from China. She emphasizes GM's commitment to an all-electric future while balancing consumer needs and regulatory environments. Despite setbacks, GM continues to innovate in battery technology and expand charging infrastructure. Barra highlights the importance of maintaining strong U.S. manufacturing and addressing global competition, particularly from subsidized Chinese automakers. She underscores GM's focus on customer-centric innovation and fostering a dynamic workplace culture, while navigating geopolitical and economic uncertainties.

• The automotive industry is currently facing significant uncertainties, including tariffs, the shift to electric vehicles (EVs), and geopolitical factors like China.
• The past decade has brought numerous challenges, such as COVID-19 and the semiconductor shortage, which have necessitated agility and adaptability within the industry.
• General Motors (GM) has developed a strong ability to respond quickly to challenges, positioning itself to strengthen the U.S. market and manufacturing sector.

"Well, I think you know in this last decade there have been so many different things that have happened. If you think about COVID, if you think about the semiconductor shortage."

• The quote highlights the numerous challenges GM has faced over the past decade, emphasizing the need for adaptability.

"The team is incredibly agile and you know, we can what's the challenge? How do we move quickly to better position ourselves?"

• This quote underscores GM's focus on agility and quick response to challenges to strengthen its market position.

• GM remains committed to an all-electric future, believing EVs offer superior performance and efficiency.
• While the company is investing in V8 engines, this is part of a broader strategy to improve performance and fuel efficiency.
• GM is making significant investments, such as the $900 million in a New York plant, to bolster its engine production capabilities.

"We still believe in an all EV future. I mean, I think EVs are fundamentally better."

• This quote reaffirms GM's commitment to transitioning to an all-electric future, recognizing the advantages of EVs.

"It's almost $900 million, the largest investment we've ever made in an engine plant."

• The quote illustrates GM's strategic investment in engine technology to enhance performance and efficiency.

• A robust charging infrastructure is critical for widespread EV adoption, and GM is actively contributing to its development.
• Consumer readiness is a key consideration, as purchasing a vehicle is a significant decision influenced by practical needs.
• GM has partnered with companies like Pilot Flying J and Tesla to expand charging infrastructure and improve the customer experience.

"We have worked we're working with Pilot Flying J to get chargers on the interstates and actually right now it's the highest rated charging experience."

• The quote highlights GM's efforts to enhance charging infrastructure through strategic partnerships.

"The consumer is very rational when you think about buying a new vehicle... they need to make sure that vehicle is going to take care of their whole life."

• This quote emphasizes the rational decision-making process of consumers and the importance of reliable infrastructure for EV adoption.

• GM's stance on emissions regulations is driven by a commitment to customer needs and market realities.
• The company advocates for a national standard to streamline technology development and address customer readiness.
• Recent legislative actions, such as the push to repeal California's emissions rules, reflect GM's focus on aligning regulations with consumer demand and protecting jobs.

"What we're committed to is the customer. And the customer was telling us they weren't ready."

• This quote explains GM's position on emissions regulations, prioritizing customer readiness over regulatory mandates.

"I've been actually saying for a couple years now that I thought the regulatory environment was getting in front of the customer."

• The quote highlights GM's long-standing view that regulations should align with consumer adoption rates and market realities.

• GM is focused on improving EV profitability and achieving price parity with gas-powered vehicles.
• The company has made strides in making EVs affordable, with a diverse portfolio ranging from budget-friendly models to luxury vehicles.
• Legislative changes affecting tax credits for EVs are influencing market dynamics and affordability.

"We have vehicles out there right now that are affordable. So for us, last year was a big accomplishment in fourth quarter to get to variable profit positive."

• The quote underscores GM's progress in making EVs affordable and profitable, highlighting recent achievements in financial performance.

"We have more than more EVs available from affordable EVs like the Chevrolet Equinox and the Chevrolet Blazer to luxury like the Cadillac L and the Cadillac Escalade IQ."

• This quote showcases GM's diverse EV portfolio, catering to a wide range of consumer preferences and price points.

• Focus on reducing costs without affecting customer experience by improving technology.
• Current market conditions allow consumers to own vehicles at competitive costs when considering ownership experience and fuel prices.

"To take cost out while not changing anything from a customer perspective, just improving the technology."

• Emphasizes the importance of cost reduction through technological advancements without compromising customer satisfaction.

• Significant investments in battery technology with two operational plants in Ohio and Tennessee.
• Introduction of LMR battery technology, expected to improve density by 30%, offering more range at a lower cost.

"We're moving to what's called LMR battery technology, which will improve density by 30%. So, you'll get more range for less cost."

• Highlights the shift to LMR battery technology as a major step towards enhancing range and profitability.

• GM facing up to $5 billion in tariff costs without raising prices, focusing on supply chain resilience.
• Efforts to source more products from North America and comply with USMCA to mitigate tariff impacts.

"There's many different steps we're taking. First of all, we're working with our supply base."

• Describes strategies to handle tariff costs, including enhancing supply chain resilience and compliance with trade agreements.

• Commitment to reshoring and strengthening US manufacturing, aligning with national goals.
• Over 50% of vehicles manufactured in North America, with plans to utilize existing plant capacities effectively.

"We make over 50% of our vehicles at this uh here and we make the majority of them in North America."

• Underlines the focus on increasing domestic manufacturing and utilizing existing facilities.

• Regular communication with the administration to discuss industry dynamics and tariffs.
• Tariffs seen as a tool to level the global playing field for US automakers.

"I've had the opportunity to talk to the president and his administration on a regular basis."

• Indicates active engagement with government to address trade barriers and industry challenges.

• Learning from past experiences with presidential criticism to improve handling of relations.
• Emphasizes understanding and addressing differences in perspective.

"When we didn't see eye to eye on some things, I think there was actual..."

• Reflects on the importance of managing relations with the administration to navigate industry challenges.

• General Motors emphasizes the importance of maintaining open dialogue with stakeholders, even during challenging times, to strengthen the industry.
• The company believes in the significance of electric vehicles and manufacturing as core elements of its strategy.
• Leadership at GM focuses on creating a workplace where employees feel valued, empowered, and listened to, which is seen as beneficial for the company, consumers, and shareholders.

"I think having that dialogue and continuing to make sure they understand our industry because I think we do have a shared goal to strengthen it, I think has been beneficial."

• The quote highlights the importance of maintaining communication with stakeholders to align goals and strengthen the industry.

"When you have people who feel valued and feel that they're empowered to do their best work, it's better for the company, it's better for the consumer, and it's better for the shareholder."

• This quote underscores the belief that a supportive and empowering workplace culture leads to benefits across the organization and its stakeholders.

• GM removed diversity, equity, and inclusion language from its annual report to comply with federal contractor requirements.
• The company focuses on ensuring employees feel valued, listened to, and that their work is meaningful.
• GM engages the organization to update behaviors to be more action-oriented, fostering a sense of ownership and collaboration.

"We need to comply. We've made the adjustments that we needed to do to make sure we were complying."

• This quote explains GM's compliance with federal regulations as a federal contractor, leading to the removal of specific language from reports.

"I ask often when I'm talking to smaller groups or we do these things called super slices where we have a couple hundred people and I'll say how many people have ever not felt valued at work."

• The quote illustrates GM's approach to engaging employees in discussions about workplace culture and the importance of feeling valued.

• The Chinese auto industry has rapidly advanced in electric vehicle (EV) production due to heavy subsidies and government investment.
• GM recognizes the need for the U.S. to invest in EVs and battery technology to remain competitive.
• The company is aware of the challenges posed by subsidized industries and the importance of maintaining a strong manufacturing base for economic and national security.

"The auto industry in China is heavily subsidized, and they have excess capacity that they're then shipping to other countries around the world and again being subsidized."

• This quote highlights the competitive advantage China has gained through government subsidies, impacting global markets.

"We need to make sure that we can compete. I mean, we've looked at the vehicles, torn them down to understand, and we understand there's not like there's a technological advantage per se."

• The quote emphasizes the need for U.S. companies to remain competitive despite the lack of a technological gap, focusing on addressing subsidy-driven price advantages.

• GM is committed to investing in future technologies such as EVs, connectivity, artificial intelligence, and autonomy to ensure competitiveness.
• The company acknowledges the potential market entry of Chinese EVs in the U.S. and the need to maintain innovation and manufacturing capabilities.
• GM collaborates with administrations to address the impact of subsidized industries on domestic capabilities and ensure a level playing field.

"I think it's so important that companies, other companies do what General Motors has done and keep investing in the technology of the future."

• This quote underscores GM's commitment to investing in future technologies to maintain competitiveness.

"We have to make sure there's a level playing field. And again, that's where I see the president really looking deeply to make sure that there aren't unfair advantages with other countries."

• The quote reflects GM's focus on ensuring fair competition and addressing the challenges posed by subsidized industries.

• GM is harnessing artificial intelligence to enhance manufacturing and product development processes.
• The company has announced collaborations, such as with Nvidia, to integrate AI into its operations, reflecting a strategic focus on technological innovation.

"We just a couple weeks ago, maybe it was a month ago now, we made an announcement with Nvidia."

• This quote highlights GM's proactive steps in integrating AI technologies into its manufacturing and product development efforts.

• Digital twins are utilized to simulate factory operations before physical machinery is installed, enhancing efficiency and reducing costs and time.
• Projects are underway to equip engineers with tools to optimize products, leveraging AI across various company functions.
• Sterling Anderson, with a background in autonomy and AI, has joined the company, expected to accelerate progress.

"So your factories running before there's, you know, any piece of machinery on the on the plant floor that allows it to start up much more efficiently, takes cost and time out of the the entire process."

• Digital twins allow for preemptive factory simulations, streamlining startup processes and cutting costs.

"We've got projects going where we're uh giving the tools to engineers so they can do more with the product, optimize it further, and then we have a many projects in every single function in the company leveraging AI."

• Engineers are empowered with AI tools for product optimization, with AI projects integrated across company functions.

• The focus has been on innovation and customer satisfaction, reminiscent of GM's early years.
• The invention of the electric starter exemplifies GM's customer-focused innovation.
• Encouraging engineers to prioritize great vehicle design and innovation is a core leadership principle.

"I think our focus has been on doing great product, bringing back the the um the engine of innovation that was what fueled General Motors for its first really almost 50 years."

• Emphasizes returning to GM's roots of innovation and customer-focused product development.

"General Motors was so customer-focused and focused on innovation, they said, 'We've got to solve this.' And we invented the electric starter."

• The electric starter is highlighted as a key innovation driven by customer needs and safety.

• Listening to employees is crucial in reducing bureaucracy and implementing changes.
• Past experiences showed the importance of not getting ahead without employee input.
• Investing time to understand employee perspectives globally is vital for effective change.

"I think a couple times maybe we got out in front of of, you know, really listening to the people doing the work."

• Acknowledges previous missteps in not fully considering employee input before making changes.

"Taking the time to listen is so important."

• Stresses the significance of listening to employees to drive successful change and efficiency.

• Regular reviews with the board ensure a robust succession plan.
• The company focuses on developing internal talent while integrating external expertise.
• Collaboration between new and long-standing employees fosters mutual respect and innovation.

"It's something that we regularly review with the board. Uh and so it's a standard process we've had for years now."

• Succession planning is a continuous process reviewed regularly to maintain leadership quality.

"We've been able to, you know, continue to grow and develop talent within the company that really knows how to do great vehicles while bringing in software, um, software expertise from Silicon Valley, battery expertise."

• Highlights the balance between nurturing internal talent and acquiring new skills from outside.

• Taking breaks from constant problem-solving can lead to fresh perspectives and new ideas.
• Engaging in personal hobbies like retail therapy or spending time with family helps in stress relief.
• Collaborative problem-solving with diverse teams is effective in finding solutions.

"For me personally, I find it's beneficial to take some time and not think about it."

• Highlights the importance of taking mental breaks to gain new insights.

"Getting a a small cross-functional group of people together and starting to talk about it and we just build on each other and then you find this solution and that solution."

• Emphasizes collaborative discussions with diverse teams as a strategy for problem-solving.