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General Motors Co. CEO Mary Barra said Wednesday she remains bullish on the automaker’s prospects despite slowing growth in electric vehicle demand and financial problems in China. “We’re in an industry that is transforming, we’re a company that’s transforming,” Barra told members of the Automotive Press Association in Detroit.
“How do we stay agile and be ahead of the changes and be as proactive as we can, to make the business fit and continue to deliver?” She said GM is adjusting “to whatever the changes will be because I think that’s going to keep happening.” GM said Dec. 2 it will sell its stake in an almost completed Lansing, Michigan, battery plant to its joint venture partner LG Energy Solution.
Terms were not disclosed while the automaker said it expects to recoup its investment at Lansing. Detroit-based GM will now rely on two joint venture plants in Ohio and Tennessee to supply the automaker’s factories that produce EVs. Barra cited the move as an example of how GM will adjust to changing conditions.
“You saw us do that with the decision we made on our third LG plant,” the CEO said. “We didn’t need that capacity, we couldn’t meet the capacity we think we need for the first two plants.” At the same time, the GM chief said remains committed to EVs.
“We honestly believe EVs are better,” she said. The number of available chargers remains an issue, she added. “We can’t get ahead of the consumer.
” Separately, GM said in a Dec. 4 regulatory filing that it was writing down the value of joint ventures it has in China. The company said it will take a non-cash restructuring charge for 2024’s fourth quarter of more than $5 billion.
China had been a source of profit for GM but more recently swung to losses amid intense automotive competition. Barra the restructuring “sets us up to be able to return to profitability in China.” GM, she added, “will still participate in an important market that I believe over the medium term will have significant growth.
” GM brands such as Cadillac and Buick “can be profitable in China,” Barra added. “We’re still looking at a meaningful presence.” Also this week , GM after pouring billions of dollars into its Cruise robotaxi unit over the past eight years, said it’s ending the subsidiary’s stand-alone efforts and will combine it with in-house efforts to develop autonomous driving technologies for personal vehicles.
The Automotive Press Association event consisted of Barra fielding questions from a host and audience members. The format has become an end-of-the year tradition for the organization. On other topics, Barra was asked about the role Tesla Inc.
CEO Elon Musk has an advisor to President-elect Donald Trump to find ways to cut federal spending and reduce regulation. Tesla is the leading U.S.
EV maker and a rival for GM. Barra was asked specifically whether Musk could advocate for policies that would benefit Tesla. “I can’t really speak to his intentions,” Barra said of Musk.
As for deregulation, Barra said: “There’s ample room for streamlining processes.”.
