DETROIT — General Motors Co. CEO Mary Barra touched on everything from how the Detroit automaker is approaching one of the most monumental shifts in automotive industry history to the company's progress on diversity, equity and inclusion efforts to GM's return-to-office strategy in a wide-ranging discussion Thursday.
Barra, GM's CEO since 2014, was the featured speaker at the Michigan Chronicle's Pancakes and Politics event at the Detroit Athletic Club. Her discussion with Dennis Archer Jr., chairman and CEO of Sixteen42Ventures, served as a follow-up to Barra's previous appearance at the event in 2021 and to GM's DEI commitments in the wake of George Floyd's murder in 2020. Barra also detailed GM's strategy on electric, autonomous and digitally-connected vehicles.
“I think this is the most exciting time in the auto industry’s history," Barra said. The industry, she said, is simultaneously going through three transformations: to electric vehicles, to vehicles as digital platforms, and to self-driving vehicles.
“The transformation we’re going to see in the next decade is significant in improving lives," she said. "And General Motors is really the only OEM that is working on all three.”
'A journey that is never over'
In June 2020, the month after Floyd's murder at the hands of a Minneapolis police officer, nine of Detroit's largest companies — including GM — publicly committed to rejecting all forms of racism, sexism and violence and to supporting reforms for a fairer criminal justice system.
"We stand up against injustice — that means taking the risk of expressing an unpopular or polarizing point of view, because complacency and complicity sit in the shadow of silence," Barra said at the time. Soon after, she vowed to make GM the "most inclusive" company in the world.
Archer asked about the progress of that effort and what informed her decision to publicly speak out.
“It was just frustration on behalf of the entire GM leadership team of, a tragedy would occur, someone would lose their life, everybody would be appalled and upset, and then nothing would happen," Barra said. "And then the next sad situation, and then the next. And so, for us it was ... we just can’t keep accepting this. And so that’s why we made the statement that we wanted to work to be the most inclusive company in the world.”
It's been a multi-pronged effort that has included company-wide trainings, hiring practice reviews, the creation of an Inclusion Advisory Board, and other steps. Barra said Thursday it's been a "journey of learning" for her, and that she encourages her team members to speak up if she says something that is not received well. It's important that GM improve on diversity, equity and inclusion, she said, because such efforts promote better business decisions and talent attraction and retention.
“This is a journey that never is over. But we’re just really striving to keep learning and together, as the entire General Motors team, to provide that environment. Because I think it’s important for our future.”
Barra also said that GM exceeded its 2022 goal for spending with Black-owned media and "diverse groups," an effort that followed high-profile criticism the company received about its ad spending with Black-owned media.
“As difficult as it was, the way the conversation started, I really feel by listening and partnering, we’re a better company for it," Barra said.
GM took a pledge to be the 'most inclusive' company. It's trying to make it happen
'Work appropriately'
Meanwhile, Barra said that GM's return-to-office for white-collar employees is "going well" despite what she characterized as a "small minority of very vocal people" who have been opposed to the end of fully remote work.
GM told its white-collar workers who had started working from home at the start of the coronavirus pandemic that they'd be required to come back to the office three days a week starting in January.
“What we found is, being where you can do your best work became, 'I want to be wherever I want to be' ... and that wasn’t productive," said Barra. The automaker has a work policy dubbed 'Work Appropriately.'
“I think overall it’s been successful, but it’s been a journey and ... we still have more work to do," said Barra.
Going all-in on EVs
GM has committed to moving to a zero-emissions light-duty vehicle lineup by 2035. It's developing all-electric vehicles on its proprietary Ultium platform, and by the end of this year is slated to have nine EVs on the market in the United States. As part of its electrification strategy, the automaker also is establishing four joint-venture battery plants: one in Ohio that's now up and running, two in Tennessee and Michigan that will come online this year and next year, respectively, and a fourth at a location that has yet to be announced.
Barra talked Thursday about GM's strategy, how she views the industry's transformation, and challenges such as building out EV charging infrastructure and overcoming consumers' anxiety over battery range. She also fielded a question on GM's controversial decision to nix Apple CarPlay and Android Auto in its future EVs, a decision she said will enable greater choice for drivers.
“(Those systems) kind of want to own you. They don’t like it when you leave their environment," Barra said. "What we’re trying to do is provide an environment where you choose what map system you want to use, where you choose if you want to use Spotify or Apple Music. … This assumption that we’re taking it out and there’s nothing behind it is a little simplistic. Our goal is to provide an even better, seamless experience — and also not force you into one environment and give you more choice.”
Despite the significant investments in electrification by GM and others, stiffening government regulations, and signs that consumer adoption of EVs is accelerating, Barra said the industry's transition to electric vehicles will play out over decades. She noted recent data indicating that U.S. consumers are holding onto their vehicles for longer than ever.
“The most significant transformation before this was when people moved from horse and buggy to the internal combustion vehicle. That took 50 years. I think this will be a shorter transformation," Barra said. "But I think these next 10 years are going to be critical.”
