Sep 19, 2019

CEO Mary Barra: GM soon will sell a million electrics a year

Photo: Drew Angerer/Getty Images

GM CEO Mary Barra is willing to bet her company's future on massive investments in electric and self-driving vehicles — even at the expense of its traditional gasoline-powered base, writes Bloomberg Businessweek.

The big picture: "Taking vast resources from businesses that make money and moving them toward businesses that (so far) lose mountains of it is obviously a large and risky bet," according to Bloomberg. However, the biggest challenge for GM will be to get the right timing as it goes full steam on electric vehicles.

What she's saying: She believes GM can soon sell a million electric vehicles each year.

The catch: GM "could be blowing cash for years before there’s any payoff."

  • "If driverless and electric vehicles take off more slowly than Barra expects, then GM will have prematurely jettisoned thousands of skilled veterans and killed off its smaller gasoline models, leaving the company even more vulnerable to a spike in fuel prices than it is now."

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U.S. jobs are key issue as GM strike drags on

Striking GM workers at a powertrain plant in Bedford, Ind. Photo: Jeremy Hogan/SOPA Images/LightRocket via Getty Images

The United Auto Workers (UAW) strike against GM is now 24 days old, with the UAW's chief bargainer telling members Tuesday evening that job security remains a key sticking point.

Why it matters: The economic damage is spreading. In addition to the 49,000 striking workers, another 100,000 non-UAW employees at GM and its suppliers are out of work because there's nothing for them to do, according to Anderson Economic Group.

Go deeperArrowOct 9, 2019

Electric vehicles see both gains and growing pains

The Volvo XC40 Recharge. Courtesy: Volvo

The slow global transition to electric vehicles is facing a mix of green and yellow lights.

Driving the news: Volvo has taken the wraps off its first fully electric vehicle, the XC40 Recharge, a small SUV unveiled yesterday that has a range of roughly 250 miles.

Go deeperArrowOct 17, 2019

GM workers will remain on strike during vote at union halls

Workers from United Auto Workers Local 440 picket at an entrance of General Motors' Bedford Powertrain factory during national labor strike against GM. Photo: SOPA Images/Contributor/Getty Images

The United Auto Workers strike against General Motors will continue for at least another week as union members vote on whether to ratify a tentative contract agreement.

Why it matters: The unusual decision by some 200 local union leaders from GM plants around the country means the economic pain for the company, its employees and suppliers will continue to mount at least through Oct. 25, when voting at local union halls is scheduled to conclude.

Go deeperArrowOct 17, 2019