For Release: Thursday, March 12, 2015, 9 p.m. EDT
GM CEO Address Chicago Economic Club
CHICAGO – General Motors CEO Mary Barra addressed the Chicago Economic Club
on Thursday evening. The prepared text of her remarks is below. As always, the
speaker’s words are definitive.
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Thank you for that kind and generous introduction. And thank you for the
opportunity to speak with you tonight.
An exciting new era of change is sweeping the global automotive industry. In fact, I
believe the industry will experience more change in the next 5 years than it has in
the last 50 years.
I don't make this claim lightly. I believe we are on the verge of a revolution in
personal transportation.
And the impact on every company in the industry, every urban center and hundreds
of millions of consumers will be profound.
There are roughly 30,000 parts in the typical automobile and virtually all of them
are being reconsidered and reimagined. Every assumption and industry norm are
being challenged. Different fuel sources; new propulsion systems; lighter, stronger
materials; reduced environmental impact; connectivity preferences; ownership
options; even the right to drive in congested urban areas are just a few examples
of the reinvention process that's underway.
It is impossible to overstate the magnitude of change I'm talking about. Some of
the examples that I will reference tonight may sound like long-term science
projects. They aren't. They are real...and imminent. They are also daunting,
challenging...and incredibly exciting.
The auto industry is exploding with creativity, innovation and competition. I have
been in the industry for more than 30 years and this is by far the most exciting
time. Looking across the business landscape, there isn't any place I would rather be
right now. I love the opportunities this era of change presents.
It motivates the GM team every day… because we know we have a chance to make
an important difference in the lives of millions of people.
Just a few years ago, if I had polled this audience, and asked you to pick an
industry that best represented the 20th century, many of you likely would have
selected the automotive sector. And GM probably would have been the example a
lot of you would have identified.
Conversely, if I had asked you to pick the model industry of the early 21st century,
you undoubtedly would have chosen the technology sector. Apple, Google,
Samsung and Amazon would be likely examples.
As I stand here tonight, however, perceptions are beginning to shift. Interest in the
auto sector is growing in many quarters. The technology industry, in particular, is
becoming more engaged because they realize that cars are the ultimate mobile
app. I am glad our industry is attracting so much attention and I am excited about
the coming advancements in cars.
At GM, we have made it clear to our shareholders, our dealers and our employees
that we want to build the most valued automotive company. Second place is not
our aspirational goal. We want to win. We want to lead.
A key element of driving that value, and the basis for our future growth, includes
investment in technologies -- technologies that provide direct benefits to customers
and solid returns for our shareholders.
GM’s investment in the technologies of tomorrow is consistent with the
announcements we made earlier this week on a comprehensive capital allocation
strategy, focused on solid business performance, rigorous capital discipline and
increased returns to shareholders.
In our announcement, we committed to a share buyback program totaling $5 billion
before the end of 2016. Combined with our $9 billion per year investment in new
products and advanced technologies, we are delivering on our plan to win - for our
customers, our shareholders, our partners and our employees.
We are making these investments because we believe strongly in the future of the
industry and the future of GM. The fact is this is a growth industry.
Given the traffic that we all deal with on a daily basis, it may seem hard to believe,
but the vast majority of the world does not own a car. And demand for automobiles
is exploding across Asia, Africa and South America. The market will also continue to
be strong here in the U.S.
Our job at GM is to make sure we are properly positioned to take advantage of the
surging demand for personal transportation. So before I talk further about the
technology revolution, I want to briefly highlight three critical strengths of the
company.
First, we have scale and resources.
If you don't currently own a GM vehicle and haven't bought one in years, you may
have an outdated image of our company. In 2015, we expect to sell nearly 10
million vehicles around the world. This would be the most in our 110-year history.
That's more than 1,000 new vehicles sold every hour, 24 hours a day.
To produce that volume, we have more than 170 manufacturing plants in 31
countries. And, we purchase more than $400 million of goods and services... every
day.
Second, with 216,000 employees we have a tremendous base of talent. As an
engineer, I am biased, but I think the technology race will be led by STEM
professionals. At GM, we have nearly 37,000 engineers and other technical
resources who are working every day to invent transportation solutions for
tomorrow.
My primary focus at GM is to build an environment where employees feel motivated
and empowered to be creative. As a long time GM employee, I know both our
strengths and our weaknesses. I'm determined to see the full potential of our talent
and resources unleashed.
A stronger, more dynamic and more creative GM will deliver great value for
customers, shareholders and for hundreds of thousands of villages, towns and cities
around the world.
As an engineer, I am trained to focus on facts and data. In the world of science and
math, ambiguity is the enemy. I always want to know the facts and I believe in
measuring outcomes. To that end, we know that our processes and systems have
to produce superior results. And our technology solutions have to meet and exceed
consumer expectations. We get this at GM and we are determined to deliver.
A third strength of GM is our long record of innovation. From the first electric
starter to the first crash dummy. To the EV1 to the Volt. To the most fuel cell
powered miles driven in the industry. To OnStar and 4G LTE, and countless more
examples, GM has always played a leading role in revolutionizing the automobile.
Consider 4G LTE. It's a powerful proof point of our commitment to put the customer
at the center of everything we do. We are installing 4G LTE on 30 vehicles, the
broadest deployment in the industry. The service will include a built in Wi-Fi hot
spot capable of pairing up to seven devices.
Most significantly, it enhances the connection to OnStar, making it the best invehicle safety system available from any manufacturer.
But the competition in this industry is fierce and getting stronger every day. In fact,
this is one of the rare times in the history of the industry when virtually every auto
company is profitable. As you would expect, confidence is running high among all of
our competitors.
Success for GM or any auto company is far from certain. But I am certain we have
what we need to become the most valued auto company in the world. The history
of our industry shows that consumers will spend their money with the companies
that design, engineer and manufacture vehicles that give them the best possible
value, safety and reliability.
Our mission at GM is to earn customers for life. We want to give every customer a
great experience not just the day they buy a car, but in the process leading up to
the purchase, and for as long as they own their vehicle.
If we deliver this level of ultra-attentive customer service, along with the kind of
technology breakthroughs we know are coming, we will be recognized and
rewarded in the marketplace.
Some of the transformative changes I’m talking about include: electric powered
vehicles, autonomous vehicles and enhanced connectivity.
Think about your own driving experience. It wasn't long ago that we all thought 30
miles per gallon was a great milestone. And for certain types of vehicles it is. But
consider the Chevrolet Volt.
We have sold approximately 75,000 Volts and we know from vehicle data that the
typical Volt owner goes 900 miles between fill ups at the gas station. Remarkable,
yes, but it is the norm for the Volt. We expect the next generation Volt to go more
than 1,000 miles between fill ups.
At GM, we continue to believe strongly in the future of electric vehicles. In fact, in
January I revealed a concept car at the Detroit auto show, the Chevrolet Bolt.
It is an all-electric, family vehicle that will go 200 miles on a charge and cost
roughly $30,000. We think it's going to be a game changer. Last month at the
Chicago Auto Show, we announced that – in cooperation with our UAW partner –
we will build the Chevy Bolt at our Orion Township plant in Michigan.
But electric is only part of the answer. It's likely that numerous propulsion systems,
from any number of companies, will continue to advance - hybrids, fuel cells,
diesels, to name a few. And the internal combustion engine is far from dead.
Looking forward, there is a lot we don't know, but we do know this - we will
continue to increase the fuel efficiency and reduce the environmental impact of
vehicles beyond anything anyone imagined even a few years ago.
I suspect many of you are wondering about the buzz about autonomous vehicles.
Are we really going to have driverless cars? Some would say a lot of consumers
believe we are already there. Just think how many people you have seen texting
and driving. Or reading and driving. Or applying make-up and driving. Or eating
meals and driving.
This is not the recommended type of autonomous driving I'm talking about. The
technology I envision, that we and other companies are working on now, will be a
lot more advanced, and a lot safer.
The most important point you should remember about autonomous vehicles is that
they are coming - and fast. The technological foundation for autonomous vehicles
can be seen in cars today - adaptive cruise control, lane changing warnings, front
and rear cameras, to name just a few.
In less than two years we are going to start connecting cars to each other, and the
world around them, using wireless technology called V2X.
V2X encompasses both vehicle-to-vehicle and vehicle-to-infrastructure technology.
It's a game changer for safety, because when enough cars share information about
such factors as speed, direction, and braking, crashes will be substantially reduced.
This is reality. It is not science fiction. It is not a pipe dream. It is here. We know
how to do it. And it will transform the industry in the coming years.
The investment will be substantial for governments at every level, the automotive
industry and endless related businesses. That’s why a comprehensive capital
allocation strategy is critical. And building this infrastructure will certainly take time.
But the savings in accidents, economic loss, congestion, environmental
impact...and, most significantly, in injuries and fatalities…will be extraordinary.
Cadillac is taking the lead for the company with this technology. The 2017 Cadillac
CTS will be the first GM vehicle with V2X technology. I believe it will also be a first
for the industry.
We are currently working with the State of Michigan and the University of Michigan
to create more than 100 miles of V2X-enabled corridors in the Detroit area. This
test program is the largest of its kind in the world.
Over the past year, my work has taken me to many of the world's great cities New York, Berlin, Beijing, New Delhi, São Paulo. The differences culturally,
economically and politically are significant. But so are the similarities. All great
cities, like Chicago, are striving to be more livable. To be more secure. To be more
prosperous. To be more welcoming.
You are lucky to live in one of the greatest cities in the world. Chicago is an
American treasure. But everyone in this room wants more for Chicago. For your
children and for future generations...you want to build a better city.
At GM, building better cities and a better world through improved transportation
options, is part of our core.
Personal transportation means freedom. It means economic advancement. And it
means connected families and communities.
But think what we can do with a world of safer vehicles. Vehicles that use less fuel.
That have less environmental impact. That are programmed to prevent accidents
and reduce congestion.
The goal at GM is to be the clear leader in this era of transformational change. I
believe in our team and I believe in our technology. And I am committed to
results…results that serve our customers across the globe. Results that change
how the automobile is used. Results that deliver to our shareholders.
I know I speak for every GM employee when I say it is an honor to be in this
business at this time. We are excited about the future. More than excited, we are
inspired.
It was a privilege to be here tonight. Thank you for sharing your evening with me.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30
countries, and the company has leadership positions in the world's largest and fastestgrowing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles
under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and
Wuling brands. More information on the company and its subsidiaries, including OnStar, a
global leader in vehicle safety, security and information services, can be found at
http://www.gm.com
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CONTACT:
Pat Morrissey
GM Communications
313-407-4548
patrick.e.morrissey@gm.com