Between changing regulatory targets, wildly fluctuating tariffs, ongoing supply chain disruptions, the elimination of federal tax credits for battery-electric vehicles, and the Trump administration’s stated preference for cars powered by internal combustion, 2025 marked the end of one overarching ideology with another when it comes to future mobility.
As the EV market pivots, this automaker will stay the course
The fourth quarter took its toll on every EV maker. How much more money can GM burn before seriously rethinking its approach?
‘Moving day’ at GM’s new headquarters
But Barra, who on Thursday celebrates her 11th year as CEO of one of the world’s largest automakers, famously put a positive spin on things by carefully choosing her words during an Automotive Press Association fireside chat at GM’s new world headquarters in downtown Detroit.
Reuters auto correspondent Kalea Hall spoke at length with Barra on the second floor of the new building on the first day of business at the new headquarters on Woodward Avenue – “moving day” as she called it – as the Detroit auto show kicks off this week with press days on Wednesday and Thursday.
‘Silly soccer mom’
What GM vehicle is Barra currently fascinated with? “I drive one Hummer SUV… I just love the vehicle,” she says, and she still sees people speeding up or slowing down on the highway to see the imposing footprint — or perhaps because they recognize the driver.
“The driving of it is phenomenal. Four-wheel steering is, I think, one of the best features. The vehicle is quite large, but you can turn on a dime and park anywhere. And I just love the design. I’d say I felt a bit like a cool soccer mom.” And yes, she has walked on crabs in a Hummer.
Find 2026 GMC Hummer EV SUV and more cars for sale on our Marketplace
When tariffs hit the industry
Barra wanted to talk business, especially tariffs. “In ’24, as soon as we heard the word ‘tariff,’ we started planning,” Barra says. “We looked at what were ‘no regrets’ measures we could do depending on what happened. And so the day the rates were announced, we already had a playbook that we had done quite a bit of work on.”
Agility and flexibility were crucial at the time, and Barra says GM asked the Trump administration for clarity. “I would also say they have worked very hard to understand the automotive industry, to do what is right to help us achieve a more level playing field globally.”
What about the fuel economy rules?
“Frankly, people talk about tariffs a lot,” but Barra points to another challenge: the Trump administration’s proposed rollback of federal fuel economy regulations from a fleet average of 50.4 miles per gallon by 2031 to 34.5 MPG by 2031, announced a month ago.
“That was more important (than the tariffs) when you look at the fact that from a regulatory perspective we would be 50 percent electric by 2030,” she says. “Now, without the consumer tax credit, also with the changes not yet fully implemented, we are on a different path from a regulatory perspective.”
GM sticks to EV strategy
Regardless, Barra says GM is well prepared for what comes next, touting both “a very strong EV portfolio” and a “very strong combustion engine portfolio so we can meet the customer where they are.”
But Barra is not deviating from the course she set almost a decade ago and is committed to an intensive EV strategy that would ultimately give GM leadership in the EV market. That hasn’t happened yet, as GM trails Tesla and BYD.
“Our destiny is to get to the all-electric vehicle future that we’ve been talking about,” she says, noting the need for affordable electric vehicles, like the new Chevy Bolt, and for a “robust charging infrastructure. Once these are in place, she expects consumers will “naturally choose electric vehicles” for the instant torque and freedom of gas stations.
Hybrids are not ‘the end game’
Barra says she understands the economic weight of purchasing a new car, and she sees consumers “making rational decisions. So I think we’ll be pragmatic about it.” As for the tipping point in favor of EVs, “without the incentives it will take longer, but I still think we will get there over time.”
Until then, automakers are looking more seriously at hybrids, plug-in hybrids and extended-range EVs, and GM is also working on some of these in the pickup sector, but Barra insists they don’t represent the end game, in part because “most people don’t plug in their PHEVs.”
How about revisiting Robotaxis?
When asked whether GM should have focused on more hybrids sooner (like rival Toyota), Barra does not flinch. ‘No. I think when I look back and look at – with everything we knew at the time – we would make the same decision.” She says EV owners are 80 percent likely to buy another EV. But getting them to buy that first EV seems like a tall order, at least now.
As for revisiting robotaxis, a dark saga for GM that ended over a year ago with the discontinued Cruise division, Barra isn’t interested. “This is not our business. It’s one of the things we’ve learned,” to focus on personal vehicles and personal autonomy. “We don’t run a taxi company. We don’t run a bus company. We don’t run Rideshare 1.0, so I think this is the right decision for us.”
GM is forecasting sales growth through 2025, but this brand is on shaky ground
Can Cadillac survive with an Escalade and four electric vehicles?
Childhood memories of Hudson
By the way, GM’s new headquarters is located in the building along Woodward Avenue in downtown Detroit, where the Hudson’s department store was the tallest in the world, at 400 feet high with 200 departments and more than 700 fitting rooms. The store closed in 1983 and the building was demolished in 1988.
Barra remembers that at the age of 64 – like many other young people growing up in metro Detroit in the 1960s and 1970s – she came to Hudson’s with her mother and brother to view the elaborate Christmas displays and buy Christmas gifts in the “kids only” department.
Although she is approaching retirement age, Barra, an electrical engineer by training, says she is not ready for that next chapter. “I will also say, I’m having a pretty good time, so I’m trying to stay in good shape,” she says. “I couldn’t be more excited about what we’re doing… I think we’re just getting started.”
#Mary #Barra #talks #business #ahead #Detroit #Auto #Show