Barra seems clear that what got GM here (profitable to the tune of $8B this year), won't get it there (competitive in the new world of transportation).
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Cars! I love cars. Well, mostly I love old cars. We had a 1960 T-Bird Convertible when I was a kid. Dark green with a white top. My father would floor it, and yell, "Hold on! We're blasting off!!" And we'd be off with three kids in the back and no seat belts. Those were the day and THAT was a car. My first car was my grandmother's hand-me-down 1969 Chevy Malibu, pale blue with a white top and couch seats. She didn't look like the V8 type but then again... Anyhoo, the days of a car being a car are over. Nowadays a car is a computer. And when you want to get from here to there it may not be your best option. For sure if you live in a city, it's not. So what's a "car" company to do?
GM plans to close seven plants and lay off over 14,000 jobs worldwide. Trump shared his opinion in a tweet, "This is the thanks we get." Presumably, his comment was a reference to the $18B TARP bailout authorized by President Bush which GM has repaid in full. Last week GM was thoroughly dressed down by Congress. So how does it feel to be Mary Barra? GMs CEO took her lumps. She seems clear that what got GM here (profitable to the tune of $8B this year), won't get it there (competitive in the new world of transportation). She explains her views to Lloyd Blankfein and his reaction is...hate to say it but it is priceless :)
To watch their conversation in full including her perspective on tariffs, China, company culture and the future of transportation go here.
Trump and Congress aside, Barra's strategy might be a very smart move.
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