GM CEO Mary Barra bullish on EVs, robotaxis, China despite scrapped investments

General Motors CEO Mary Barra said she remains optimistic about the automaker’s future despite ongoing challenges in the electric vehicle sector and Chinese car market.

Driving the news: Barra made the comments during an annual meeting with the Automotive Press Association held in Detroit.

• The executive emphasized the brand’s adaptability to environmental shifts, noting it had sold its stake in what would have its third battery manufacturing plant due to lower-than-expected EV sales.

• Barra also pointed to the automaker’s restructuring efforts in China, which she said would soon make room for profitability to return.

• The country used to be a key market for General Motors, but competition with domestic manufacturers has weakened its business and caused losses.

Zooming in: Barra’s comments underline the number of changes the company has made in response to evolving market dynamics.

• In addition to dialing back its investments into EV batteries, the automaker has also pulled funding from its Cruise robotaxi division.

• It will now pursue self-driving and driver-assistance software in-house, with the goal of building autonomous vehicles for personal use similar to Tesla’s upcoming robotaxi.

Looking back: At the same time, those changes haven’t come without considerable costs for the automaker.

• That third battery plant, built in partnership with LG Energy Solution, was nearly completed by the time General Motors removed itself from the operation earlier this month, representing millions in wasted investments.

• The automaker’s restructuring plans in China are also set to result in a $5 billion non-cash charge by the end of the quarter.

• The end of the company’s support for Cruise similarly comes after billions of dollars in losses over the last several years, as robotaxis have struggled to generate enough revenue to cover the costs of research and development.

Looking ahead: Still, Barra claims that General Motors is well positioned to recover its investments. And, despite its challenges, the company is still projecting a full-year net income (attributable to stockholders) between $10.4 billion and $11.1 billion, slightly higher than the $10.1 billion it generated in 2023.

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