GM CEO Mary Barra Says Automaker Needs To ‘Earn Our Right’ To Exist
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General Motors CEO Mary Barra ushered in a transformational corporate culture when she took the top spot at the automaker years ago. Since then, she’s dealt with a restructured GM, a massive ignition switch recall crisis and worked to create a leaner automaker across the globe.
Barra still isn’t taking her company’s position for granted, and in a recent interview with Yahoo Finance, she said GM needs to “earn our right” to exist in the future.
“We don’t have the right to exist. We have to earn our right to be General Motors and to be able to have the privilege to build cars, trucks, crossovers, and other transportation services by doing a great job and earning customers. And so, really, that’s the transformation we’ve made,” she said.
During the interview, Barra touched on multiple topics, including electric cars, self-driving vehicles and her corporate ethos of “zero crashes, zero emissions, and zero congestion.” GM hopes to cash in early on the blossoming mobility sector with self-driving cars and ride-sharing services. The automaker has plans to commercialize self-driving cars in 2019.
On the green front, GM also wants to rid itself of fossil fuels by 2050.
Barra finally spoke of U.S. trade relations with China. The CEO called for a level playing field and for the country to open its markets up. Lower tariffs are a start, she said.
“If you give us a level playing field, we want to compete to win based on merit. I think there’s [an] opportunity there to create a level playing field, which we don’t have today.”
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Sorry , but earning the right sounds like GM doesn’t yet have it ! Compared to Ford who has a much smaller assortment of timely vehicles and a truck that is way ahead of the pack ,plus an assortment of timely and popular delivery vehicles . Add to this their share prices much higher than GM . They have earned the right and this lean mean company is set to take advantage of every turn in market demands . GM with it’s swollen bloated management , influential old shareholders and an array of different models using the same frames , earning the right is definitely work in progress . To me , it is like fighting a battle with one hand tied behind your back….so come on GM and keep earning your right , unfortunately the road to it is uphill in both directions !
I honestly can’t tell if you’re being serious or you posted this as a joke.
GM, Ford Earnings Are Going In Different Directions – 1/16/2018 Yes, it’s almost six months old Jim, but, you were saying?
GM Shares edged up 0.3% at 44.19 on the stock market today. GM rose as high as 45.52, briefly topping a 45.45
Ford fell 1.8% in late trade after closing down 1% to 13.10. Ford hit 13.48 intraday, its best level since July 2016.
https://www.investors.com/news/general-motors-jumps-on-strong-2017-earnings-bullish-outlook-for-2018-2019/
Customization, uniquely designed vehicles riding on common platforms, allows GM to target specific demos and gain more buyers.
You must think VW is ready for the scrap heap, too..
Jim nothing you said was true. Wanting it 2 b true doesn’t make it true
Wow.
You could not be more misinformed.
Makes one wonder just how misinformed your entire life is.
Good luck.
I really like what she said and is spot on, except, it needs to start with Cadillac and Crazy New Technologies because they have the price point, they need their own materials no sharing from the bottom of GM up, their own Crossovers and SUV’s no Knockoffs from other Divisions, and a lot ain’t gonna want to hear this, make the Escala a True HALO car, that means they need to put their Foot in it and make it in the $300k + range, that’s what a Halo car is, I like the direction of the CT6 and XT4 which has a very good foundation, and really looking forward to the CT5/3 and the rest of the XT line up. But it’s all about the leadership and hope this New guy’s Vision is on par with JDN’s or Higher, the Hell with Spinning Cadillac Off, but Spinning it Upward to it’s Rightful place… ?
Here is a concept: How about making interesting and affordable vehicles that people actually want to buy and own. Forget about self driving vehicles–no one wants them. We want to own and drive our vehicles.
Much apologies GM , sorry for the error in share prices ! GM over 44.00 share and Ford is about 11.50 . GM , Ford and Chrysler make some fine vehicles , I have owned more than one of each . Frankly , none of them are preferred , but as a former multi business owner , my preference to own would be Ford , highly focussed and able to adapt to market conditions more quickly . But is it better , not for me to say . Again , sorry for the wrong info . Jim
As a business owner you should know that share price doesn’t tell you anything about a companies valuation. Ford could buy back a few millions shares of stock next Tuesday to raise their share price to $50 but that doesn’t mean they are worth more. GM, by far, has a higher valuation.
As long as GM does not know how to develop cars and produce them with left hand and right hand steering, this company is doomed.
Over 63-percent of the electricity used in the United States comes from fossil fuels meaning every Tesla and Chevrolet Bolt has a carbon footprint; thus when Mary Barra says she wants to build only zero emission vehicles, if the electricity used in the country still comes from fossil fuels in 2050, the benefits of electric vehicles won’t be as high as one might think and GM needs to make faster recharging as things like the Chevy Bolt taking 12+ hours to recharge has to change.
Maybe quality & culture have improved and spending has been controlled, but I wish the product portfolio was a bit more appealing. One way or another, sales will ultimately dictate success and and product will ultimately drive sales.
Aside from a new mid-engine Corvette, the rest of the GM lineup seems to have moved mostly sideways. Is the new Regal that much better than before — or any other Buick for that matter? Cadillac hasn’t moved the bar in years and has made little/no gains in the luxury space — sure we hear of exciting concepts, but when? While the Bolt is a perfectly good EV, its econo-class style poses no threat to Tesla. GMC has remained about the same for a while now.
I realize it’s an achievement to just stabilize this gorilla of a company and prevent short term losses, but what does the long-term hold for earning new customers? Is there some amazing stuff in the works or are we waiting for the self-driving world?
The self driving world cannot come soon enough.
Just imagine, no punk kid trying to kill others because he is either cool, simple or a combination of both.
And what about the older guy who thinks he is something special in his 1993 Nissan P/U.
And Americans love to bash GM, all while they give passes to import brands and the mediocrity they represent.
Hyundai and Kia sell mediocre product but Americans still buy them because they are under cutting on price.
Self respect among Americans and loosing the desire to bash fellow Americans would go a long way towards keeping America alive. Otherwise, we are rapidly becoming the next Australia or GB. No domestic automakers.
As a current GM car owner, I can say I root for GM more than the majority of people on this forum.
But success comes from acknowledging reality and making improvements, rather than burying one’s head in the sand — or trying to lay the blame on some perceived cultural shift.
Exactly, all these ” quaters, stocks, bonds” and crap don’t mean nothing if I don’t want your cars because of better competition or/and half-baked efforts.
Not saying they shouldn’t put money in EV/anonymous tech but what’s that got to do with the Regal not being produced here despite being a Malibu twin, or the Trax/Encore not made in Michigan, or an affordable performance compact and sedan, is this unionbusting?, is this 1979?.
I’ll say half of the US companies need to move from the Wall St. model of how to maintain a large entity thinking it’s all about profits will cause many companies to cost-cut, lay off and cheap they way in to “nirvana ” but wind-up failing anyway due to the points above. It don’t work in certain industries like the Asians and Euros showed, It isn’t like “The St.” is infallible too (crash of 29′, 58′ 87′ 08′..).
The “right to exist” is a very strange concept — who is administering such rights? Whose power takes away the “right to exist” of some company or country?
Everything which comes into being will vanish some day.
Reality is a permanent process of becoming and vanishing, of growth and decay.
A “right to exist” is nonsense, only a capability to exist makes sense, or simply the existence.
… and you’d be OVER-thinking. She’s simply saying GM isn’t entitled to exist. It must earn EACH sale, one by one.
This would be a smart lady CEO.
Mary’s next big challenge – fixing relationships with dealers. Since Alan Batey’s arrival in the US, relationships with dealers have soured considerably. My friend who owns multiple GM franchises says he’s never seen it this bad. He says “The only thing Alan Batey hates more than dealers is customers.”
I’d rather see her be more progressive and start swapping dealers for stores.
I am a GM fan since the day I rode in a Chevy after my birth! I presently own one, but the prices are climbing higher than my income, so GM has a big disadvantage against the cheaper foreign brands that pay lesser salaries to their workers and executives.
If Mary Barra wanted to prove with actions instead of words, she would do three things:
1. Lower her salary and executive benefits, even donating most of it to a charity.
2. Have ALL the executives get the same salary and benefit cuts, and donate to their charities. Whoever is against such cuts should be fired!
3. Drive in a Chevy Volt or at most a Cadillac CT6 plug-in hybrid, showing a direct support to the EREV technology with a daily driver. Ditch the Camaro and the SUVs in her use!
4. Have all the trucks and SUVs move to a hybrid power train now.
I knew a Governor who donated 100% of his salary to charity because he had his private income. Barra isn’t a politician, but acting charitable will show her true spirit in helping GM’s executive levels prove themselves as really working for their customers.
GM must earn it’s keep. It is/recently was a collection of failed brand: Opel, Vauxhall, Holden, not to mention Buick and Cadillac being shaky in the US and Chevrolet challenged on the coasts.
High Transaction Price is Wall Street gold but Chevy products are generally over-priced while lacking in content so that GMC and Buick can maintain a reason to exist.
Barra needs to take a look at the relationship between VW, Audi and Porche in Europe. Buick must move upmarket so that Chevrolet can take better aim at Honda. Cadillac will never be as pricy as Porche but can focus on RWD athletic luxury while Buick does AWD conservative premium.
Brands die! Look at Saturn or the slow decline of Chrysler, Fiat, Lancia. GM has four great brands in need of demographic fine tuning and a focus on first to market technology. GM has a techno advantage that could easily be squandered ad Volt was. Honda with how they use adverts to explain Clarity should serve as an example to GM.
I love and have owned GM’s since the 1980’s. They have come a long way but have a long way to go. I can understand wanting to invest in upcoming EV trends but think they need to be careful in doing so and be ready to respond to what the market is buying. I also think they are mistaken pushing the drive less tech so early, especially after several violent crashes.
Instead I would concentrate on the following-
1) Advertising
2) Quality control and part longevity
3) Fixing problems and issues that already exist (Silverado/Sierra vibration issues and 8 speed shift quality being examples)
4) Dealership experiences and especially service department experiences for customers
5) Pricing structure, standard equipment and option packaging all need to improve
6) Spend less time worrying about the year 2050 and fantasies like zero road congestion or fatalities. As long as man exists those things will be present in one form or another. Concentrate on the here and now and providing the best and safest product possible.