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General Motors Co (NYSE:GM) is in a critical transition to electric vehicles, as CEO Mary Barra affirms the company’s commitment to capturing a larger share of the EV market. Speaking at the Detroit Economic Club on Thursday, Barra emphasized the need for GM to align with consumer preferences as part of its “once in a century transformation.”
Electric Vehicles: At one point, Barra asked the audience to raise their hands if they have ever driven an EV: about a third said they had. She identified design, affordability and driving range as areas that General Motors must focus on to advance electrification.
Barra also noted that building an EV charging network is a significant barrier. She discussed the ongoing manufacturing of EV chargers funded by President Joe Biden‘s bipartisan Infrastructure Bill and GM’s charger partnership with the Berkshire Hathaway Inc (NYSE:BRK) (NYSE:BRK) owned Pilot Flying J as encouraging signs.
Elon Musk and Tesla: Barra pledged in 2021 that GM would catch Elon Musk‘s Tesla Inc (NASDAQ:TSLA) in EV sales; this did not come to fruition. However, Tesla has faced its own difficulties, particularly with Musk’s outspoken political comments and commitments to other ventures.
Barra was asked about Musk’s activism and how GM differs in its approach to taking stances on social issues. She said that she has respect for Musk and views him as an “innovator,” but stressed that the century-plus-old GM must “think through” stances through the lens of company values.
Chinese Competition: As Chinese EV competitors such as BYD Company ADR (OTC:BYDDY) and Nio Inc (NYSE:NIO) plan to enter the U.S. market to undercut U.S. manufacturers on price, Barra emphasized the importance of GM’s branding for its future viability in the EV market.
“I’ve always been of the mindset of if we have a level playing field, we have to compete and win and win over strong brands. We have the strongest loyalty of our brands in this country,” Barra said.
In light of recent global trade developments, Barra discussed GM’s commitment to optimizing operations and being able to compete fairly.
“We’re very much continuing to work on how do we work to drive efficiencies in our business to get costs down, but if there’s a level playing field, I think we’re going to stand ready to compete,” Barra said. “I think governments around the world are looking to make sure there’s a level playing field as we move forward.”
GM’s Supply Chain: Many GM suppliers were in the audience at MotorCity Casino’s Sound Board auditorium. Barra emphasized the importance of maintaining strong relationships with Michigan-based suppliers, as well as a diverse range of other suppliers, as the company aims to strengthen its supply chain.
“What we learned with something like the pandemic was that we did need to have much more resiliency in our supply chain. And then when we look at the geopolitical situation, we also need to make sure we have resiliency from an on-shore or ally-shore [production] in addition to continuing to look for innovations around the world,” Barra said.
GM’s Future in Detroit: GM recently announced that it would relocate its global headquarters from the Renaissance Center in Downtown Detroit to the former location of Hudson’s department store. During her appearance on Thursday, Barra discussed working with developer Dan Gilbert to move to the Hudson’s location, without making any commitments about RenCen’s future.
Photo: Courtesy of Fortune Live Media on Flickr
