GM TALKS SCANDALS, SAFETY & SELF-DRIVING
CEO Mary Barra discusses the auto industry’s shifting business model and how her company fits in
With the auto industry on the precipice of a revolution — driven by the convergence of electric powertrains, self-driving technology and car-sharing services — Mary Barra, CEO of General Motors, says her company is at the forefront.
For a company that survived the Great Depression, the emergence of German, Japanese and South Korean competition, a stunning collapse into bankruptcy and a deadly ignition-switch scandal, resiliency is at the core of GM’s DNA.
But GM will need a lot more than grit to fend off Silicon Valley giants Apple and Google — not to mention electric-vehicle maker Tesla Motors and ride-sharing app Uber — in the coming mobility war.
In a wide-ranging interview Tuesday morning with USA TODAY, Barra discussed the industry’s shifting business model, the
Volkswagen emissions scandal and her reasons for rejecting a merger with Fiat Chrysler.
The following excerpts have been condensed and edited for clarity and space.
USA TODAY: You’ve said several times that you’re not interested in a merger with Fiat Chrysler. Why?
We’ve already got significant scale. We have partnerships. There comes a point where there is diminishing returns in scale.
When you look at the margins, we’ve been very disciplined in our execution the last five years. We’re focused on the future, not doubling down on the past.
What is your relationship like with the National Highway Traffic Safety Administration now?
We have worked hard to have a strong relationship that’s built with General Motors being very transparent with the agency, which I think is very important.
The person who gets the most publicity in the industry seems to be Elon Musk. His philosophy is to talk about future products a lot more than the traditional auto industry does. Is that a sign that you need to loosen up a little bit, that you need to talk more about what you have coming ?
(Laughs) I’m sure you would like me to say yes. I think we’re fundamentally different. Look at our volume and look at the segments where we compete. His product line — his two products — his scale, it’s completely different.
Did the Volkswagen diesel car
scandal surprise you?
Surprise is a hard word.
I just step back and look at it with what we’ve been through. We’ve got to work on continuing to drive the culture change that we’re driving and our goal to become the industry leaders in safety, along with building on the foundation we have.
So that’s what we’re focused on. They’ve got issues they’ve got to work through.
Is there a meaningful gap in the general auto industry between emissions performance on the road vs. in the lab?
I’m not a powertrain expert. I think what people have to understand is calibrating engines is a very complex process where you’re balancing fuel economy performance and emissions performance and quality.
And you’ve also got to look at (how) people drive — whether it’s hot, whether it’s cold, whether it’s uphill, whether it’s expressway.
Are you pretty confident there is still a future for diesel engines?
I think it plays a role in the portfolio. There’s a range of propulsion systems, and we’re working on all of them. And we’ll adjust to how the market drives it.
Is it fair to say you’re open to wage increases across the board in contract talks with the United Auto Workers?
I’m not going to talk about any specifics until we get to it.
Google, Tesla, Apple seem to get all the publicity on autonomous, or selfdriving, cars. Are you, behind the scenes, more advanced
Things are moving quickly in autonomous (cars) because there’s so many different pathways and the standards aren’t even set. A lot of people can claim leads because people are making advancements in different areas.
Next year we’re going to have Super Cruise on one of our Cadillacs.
On highways you’ll be able to take your hands off the wheel and feet off the pedals — with a very creative way to make sure the driver is alert and involved in the driving process.
And we do have a lot of efforts that are confidential that we’re working on in all aspects of autonomous.
If Apple CEO Tim Cook were here today and you could give him one warning about what he needs to know before entering the auto business, what would it be?
I have tremendous respect for Tim Cook, and I don’t really think he needs advice from me. (laughs)
But do you think Apple is a viable competitor in the auto industry?
I have no insights other than what I read in the papers. But it would be foolish for me not to assume that they’re going to.
Is it a priority for you to beat your competitors, including Tesla, to the market on an affordable electric car?
I think it’s important to demonstrate our technical capabili- ties. It’s important to make that statement that it’s not just electrification, but it’s affordable electrification that starts to eliminate range anxiety in a beautiful package.
Very simple question: Is Uber a good thing or a bad thing for General Motors?
I don’t look at it as a good thing or a bad thing. It represents how personal mobility is changing. If we can fulfill what customers want and do it in a way that is flexible and meets their needs, that’s how we’re going to win.
Are you concerned about the state of the Chinese economy right now or is this is a temporary blip in auto sales there and it will come back next year?
I don’t think it’s a temporary blip. It’s moderating. We believe over the next 10 to 15 years, the market still will grow another 10 million units. We have a very strong position that we’re growing.
I just see it transitioning from this tremendous growth to more moderate growth over time and more volatile.
In southeast Asia right now, the Trans-Pacific Partnership is obviously a huge topic. Have you taken a stand on whether the president’s deal should go through?
We haven’t taken a stand. Over time, General Motors has been very supportive of free trade. But at this point in time, it’s new. We still need to understand all the provisions in the agreement.
The Federal Reserve has been waffling on rates for quite a while now. If and when they raise rates, will it have a significant impact on the consumer in America?
Well I don’t know if I’m the best person to answer that question, but I think there’s been a recovery.
We’ll continue to be well positioned and respond to the marketplace. Clearly the low fuel prices are very supportive of the market as well.
Is the possibility that your car could get hacked something people should be concerned about?
I think it’s a real concern. We’ve benchmarked ourselves against aerospace and the military and continue to work to assess if we have the right systems, the right design. We’re very committed to making sure our vehicles are safe.
“We’ve got to work on continuing ... to become the industry leaders in safety. ... That’s what we’re focused on. They’ve got issues they’ve got to work through.”
On the Volkswagen scandal