Thank you very much for doing this.
Well, I'm really excited to host you here in our new global world headquarters in Detroit.
Yeah, when did this open? Tell me about the building.
Well, we moved in yesterday. So you literally are one of our very first guests. This is our home. Detroit is our home. It always has been, but we're now back to Woodward. The Hudson's building site has great memories for me because as a child, I remember coming down here to see the Christmas windows. So we're really excited to be in Hudson, and I think it's going to be good for the city with the proposal we have working with Dan Gilbert and Bedrock for the RenCen to continue to strengthen not only the city but the state.
I saw a vintage cassette kind of display artwork on the wall over there. Yes.
Well, you're a Taylor Swift fan. Are you going to sneak her into the display somehow?
Well, to get on the wall you have to have an album that has a vehicle mentioned in one of your songs. So I will look forward to that. Good suggestion.
Let's talk about electric vehicles. In the news a lot lately, it seems like the industry, like many industries, took a big swing and it didn't work out. What happened?
Well, I wouldn't say it didn't work out. We never thought the transition, remember the way the vehicles propelled, this is a huge transition since almost a hundred years ago. So I think we're on a journey to get to electric vehicles. We're still committed. But I also think when we looked at the regulatory requirements we were getting a little ahead of the consumer. A vehicle is such a big purchase for a consumer, and for many of them it's the most expensive thing that they buy, so we have to stay aligned with the consumer. I think we're on a good path. As there's more charging infrastructure, as we continue to get the cost of batteries down, I think consumers will pick an electric vehicle because they're better. But in the meantime, we have a phenomenal internal combustion engine portfolio of vehicles. We lead in full-size trucks, full-size SUVs. In fact, we've led in full-size SUVs for over 50 years.
But it's a bit of a chicken and egg question, but I want to linger on it for a second. Do you think electric vehicles failed to take off like the industry hoped because of the lack of infrastructure, charging stations and the like, or because of a design issue, the world-beating electric vehicle just hadn't come online yet?
No, I think it's more of again, it's a very important purchase. The consumer is rational. Most people only have one vehicle, so they need to depend on it for everything, every day, everywhere. And we don't have the charging infrastructure as robust as we need to have for people to count on it like they count on having a gas station around the corner. But I think that's happening. There's more and more charging stations being put in. Charging is getting better. So it'll happen over time, on a little bit longer trajectory. But in the meantime, like I said, I'm very proud of our internal combustion engine portfolio because we have great vehicles for consumers to choose from. We grew share by almost 6% last year. We sell more vehicles in this country than anyone else. So I'm really proud of the choice we offer consumers.
You mentioned the cost of a vehicle being for some families, for many families, the most expensive thing that they buy. I was reading recently that the average price of a vehicle in America now is north of $50,000 for the first time. Is there an affordability crisis here in the industry?
Well, again, we have a full portfolio of vehicles. I'm really proud of the fact that we have several vehicles. In fact, last year we sold over 700,000 vehicles that had a starting price of under $30,000. These are vehicles that have great technology, great safety features, connectivity. So when you think about the Chevy Trax or Trailblazer or the Buick Invista or Enclave, we've got great choices that are affordable. We have luxury, we have premium, we have trucks. We have a full portfolio for people to choose from.
On the electric vehicle front and on the affordability front, China seems to be able to pump out electric vehicles at unbelievable price points, $12,000, $15,000. And your counterpart at Ford looked at one of these vehicles, got a sample, and said, 'It's a really good vehicle. Why can't we do the same thing?'
Well, I think at General Motors, we have affordable vehicles. In fact, the Bolt, we just started selling in the last few weeks. We'll have a starting price at $25,000 again, and that's meeting US regulations, our safety standards and requirements. So I think that's fairly significant. I think we're going to continue to compete, and I take all competition in the industry seriously by continuing what makes American car companies great, and that's innovation. We also have to recognize the fact that right now much of the auto industry in China is heavily subsidized. So all factors considered, I think we can compete and have a better vehicle, and I think we're doing that.
And that subsidy makes it really difficult, though, doesn't it?
Well again, I think when you look at what the administration did looking at tariffs and trying to get a level playing field, because previously people could sell vehicles in this country and the reverse was not true of what the tariffs were. So I think there's been a lot of progress made on leveling the playing field. I think that's something that the current administration and all administrations are looking at, because the auto industry does provide a lot of good paying jobs, and we intend to continue to do that.
So on that subject of jobs here and manufacturing here, I talk to everyday Americans who wonder why it's not possible to just turn on these empty factories again and make it all here. Like why is that so difficult?
Well, we make a tremendous number of vehicles in this country already. We're actually equipping and working by later this year, early next, we'll have two additional factories. One that we're adding products to and another that we are starting up again. So we're doing just that. And we'll have a significant portion of the vehicles we sell in this country built here and also leveraging the footprint that we have to drive on affordability.
I know it's not simple and I know that the supply chain involves parts that we don't make here. We have to import, and that raises questions for people. What does it mean to be American made? If the parts come over from overseas, but they're assembled here, what is the definition these days of an American made car?
Well, I think it starts with where the vehicle is designed, where all the engineering is done. We have about 20 miles away, we have our Warren Tech Center. It's a mile square campus where much of the engineering is done. We have in Silicon Valley a huge software organization. So we really leverage engineers in this country, true American innovation. Also from a supply chain perspective, we've been working ever since we went through COVID and the semiconductor shortage to bring a lot of the components into this country working with the supply base, and that's something we're going to continue to do to have supply chain resiliency. So much of what you're talking about, General Motors is doing.
When you say American made means where it's designed, where it's engineered, that reminds me of Apple, which always says made in California or designed in California. But of course, all those Apple products are made overseas. Can you say a bit more about the actual construction, the hand part of it, the putting the thing together part of it?
Well, again, we have more assembly plants in this country than anyone else. We also build engines, stampings, so well over 50% and growing. When you take the percentage number, you always have to look at what's selling right now because we actually have a lot of capacity to build more EVs that I think will come online. But we'll be already the majority and continuing to grow that of the actual vehicle being built here as well as the components we make. So I'm very proud of the US content that we have in our vehicles, where the vehicles roll off the assembly line.
Part of making things in America is having people to make them here in America. And I was really struck by something your counterpart at Ford said not long ago to the Wall Street Journal. He said that there are 5,000 mechanic jobs over at Ford paying six figures and he can't find people either willing to do the job or able to do the job. Are you facing a similar difficulty?
