Chairman & Chief Executive Officer, General Motors Co
GM Profits Fueled by Full-Sized SUV, Truck Demand, CEO Barra Says
Mary Barra, chair and CEO at General Motors, discusses fourth-quarter results, the vehicle offerings that are driving profits, commitment to EVs and hybrid vehicles, and how the automaker is managing the impact of tariffs.
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About Mary Barra
In the first half of 2026, Mary Barra discussed General Motors’ financial performance and strategic priorities during the company’s Q1 earnings call and in media interviews. She stated that GM was “executing well against our plan” and had “durable earnings,” citing a first-quarter EBIT-adjusted margin of 10.1% in North America, which included a benefit from a tariff adjustment. Barra noted that GM was raising its full-year EBIT-adjusted guidance by $500 million to a range of $13.5 billion to $15.5 billion, while also addressing higher costs linked to the conflict in Iran. She said the company was “prepared to respond quickly and strategically” to market developments and emphasized a multi-year focus on products, team, and balance sheet strength. Barra also spoke about the role of artificial intelligence at GM, describing an AI tool that allows designers to estimate aerodynamics on concepts in minutes rather than weeks. She said AI is a way to “give the tools to the people to be able to do better work” and that it is “hard to predict” whether AI will create more jobs than it replaces. On competition with China, Barra called for a “level playing field,” including “equivalent tariffs” and an end to what she described as unfair Chinese government subsidies, and she raised national security concerns about connected technology. Regarding consumer demand, she said GM was not seeing customers pull back on purchases or fall behind on auto loans, and that the company offers six models starting under $30,000.
Transcript (24 segments)
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Interviewer0:00
Mary, really knocking the cover off the ball with these earnings that you see with your outlook. More than $2 billion in extra profit and a profit jump for 2026. Let me start by asking what you attribute this to. Is it just the great sales and the financing of the higher margin vehicles, like a Sierra, like an Escalade?
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Mary Barra0:24
Well, first I have to start by thanking the entire General Motors team, our suppliers and our dealers for doing a phenomenal job. You know, 2025 was an exceptional year, especially when you look at all the challenges that we face. And I think it really demonstrates one of the core capabilities of GM, and it's our agility and our resilience. But the core of it starts with our great product portfolio, whether it's very affordable EVs, like the Chevrolet Trax, all the way up to, you know, a super car like what's behind me with the Corvette ZR1 X. So I couldn't be more proud of the team.
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Interviewer0:54
The ZR1 X with 1250 horsepower.
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Mary Barra0:58
It is indeed. I would call it a hypercar.
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Interviewer1:01
Mary, that's not the bread and butter, though, for you. You really make these highly profitable, highly capable big trucks and Americans are buying more of those and fewer of the EVs. Do you expect to continue to sell fewer of the EVs? I know you took a $7 billion write down for that business in 2025.
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Mary Barra1:20
Well, you know, the whole industry, we were on a path that we were working to get to 40 to 50% EVs by 2030. So now that the regulatory environment is changing and the consumer incentives have gone, there is going to be slower EV adoption. We're still committed to EVs and we've got a great portfolio that we're working on taking costs out. But in the meantime, we also have a great internal combustion engine platform. And you're right, full size trucks are one of the strengths we have, as well as full size SUVs, midsize crossovers. So we really have a strong lineup across the board. And that is really what is fueling our business success.
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Interviewer1:59
I have had as the host of Hot Pursuit, a Bloomberg podcast about cars, the opportunity to drive a lot of your EVs from the Sierra EV to the Hummer EV to the Escalade IQ, and they're fantastic products. Are you not deterred that Americans aren't buying more of these vehicles? You know how capable they are, how useful they are in daily life. What needs to happen for more Americans to buy these EVs?
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Mary Barra2:28
Well, I think the consumer is very rational when they're making a decision about what car to buy. Let's remember, it's one of the most important and expensive decisions that they make. And one of the things we have to continue to work on to drive the adoption is a more robust charging infrastructure, and that still is continuing to happen. So every quarter, more and more chargers are available. I think as people in their individual communities see that they've got a robust charging network and believe if they have to go on a road trip, there's that as well, they're going to make that choice. And what we do see is once someone buys and they see the technology, they see the driving experience, never having to go to the gas station, they stick with EVs. So I think it will happen over time. And that's why during this period, we've already got a great portfolio of EVs. We're going to continue to work, take cost out to get our EV portfolio profitable, and we're going to be well-positioned as EV demand grows over the next handful of years.
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Interviewer3:24
What about the hybrids, Mary? I mean, GM was really a frontrunner not only in EV technology but in hybrid technology with the Chevy Volt. I remember when the Tahoe came out with a six liter gas engine and electric battery power. Will you start to sell more of the hybrid vehicles?
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Mary Barra3:46
Well, we have always focused, as you said, we have great hybrid technology, we have great EV technology. One of the few OEMs that invested in a dedicated EV platform that allows us to have the portfolio we have. So we're focused on the end game and we have affordable EVs. So I think that's where our primary focus is. We understand the technology. We have it in other regions. You'll see us with a handful of hybrids as we move forward. But right now, our focus is really on having the right internal combustion engine portfolio and the right EV portfolio moving forward. And I think we're demonstrating that that's a winning formula because over the last four years we've gained share each year.
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Interviewer4:26
I wonder how much your racing efforts push towards that. And I know this is something I've talked about with your President, Mark Reuss, on a number of occasions, but you're getting into so many more leagues. I watched the Hypercars in Le Mans this summer and looking forward to watching you participate in Formula One. Do you think this really boosts your brand awareness around the world?
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Mary Barra4:45
Absolutely. We definitely see that it does. And I think, you know, when you look at Cadillac and the strength of Cadillac, it is true luxury, true American luxury. F1 is the place that Cadillac should be showcased. So we're very proud to be a full works American team anxious to enter this year in Australia. But I think it's going to be very important for the Cadillac brand and we do have a really robust program that takes what we learn on the track and we incorporate it into our vehicles to make our vehicles better. That's true for Chevrolet as well as Cadillac and the entire portfolio.
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Interviewer5:21
I got to ask about the finance arm. GM Financial provided a massive liquidity buffer, I think $36 billion there. How do you think about, because you're doing buybacks, returning a lot of cash to shareholders. I'm sure they're happy about the stock is near an all time high. But how do you think about putting that aside for protection versus supporting shareholder returns, you know, in case the auto cycle turns at some point?
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Mary Barra5:50
Well, we've indicated that 18 to 20 billion is our cash target. Last year we finished the year strong at around 22 billion and we have a capital allocation framework of first reinvesting in the business. Second, making sure that we have an investment grade balance sheet and then returning cash to shareholders. And we think based on the strength of our business and the cash that we generate, we can continue to do that well. And that's where our focus is.
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Interviewer6:18
You know, the financial arm has added, I think, more than $2 billion to 2025 profit. So it's really a contributor, kind of a quiet profit stabilizer. Is that turning, though, as delinquencies and charge offs rise a little bit, is that starting to concern you as consumer balance sheets thin out?
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Mary Barra6:41
Well, it's something that we watch very closely. I think GMF does a great job in their business, and it is a very important business. Shout out to the GM financial team for the great work they do. It's also very important from a loyalty perspective because having a captive and being able to interface with the consumer on a monthly basis as they make their car payments, I think is just part of the ecosystem that we're building to really make sure we have that great relationship with the customer. And it shows that we have the highest loyalty in the US of any OEM.
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Interviewer7:09
I look at loan originations in the fourth quarter and I see that they're down pretty substantially about 21%. And I wonder if that's a deliberate choice by GM. Are you tightening your credit standards or is that reflecting a softer demand at today's rates and prices, which are both fairly high?
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Mary Barra7:34
Well, the car company and the finance company, they work together to make sure we have the right equation and what's going to optimize, you know, profitability for the enterprise. And so I think I don't think you can look at one quarter, it goes up and down depending on what's happening in the external world. But GMF is a very important part of our portfolio of companies. And again, as I said, it works in concert with the car company to make sure that we have a strong business overall.
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Interviewer8:02
I have two. When I think of credit standards, I think of First Brands among some of the other businesses that have fallen to Chapter 11 this year. I saw a report in the Financial Times overnight that you, along with Ford, your cross-town rivals, are negotiating to help send them a rescue line of sorts. Can you comment on that at all, Mary?
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Mary Barra8:21
Well, what we're very much focused on is while we make sure we have secure supply, as is that transition period. So I think what you see General Motors and other OEMs working together to do is make sure that we don't have supply chain disruptions because of their financial situation. We've been working on it. But I think as we look at, you know, the immediate what's happening next week, next month, that's the work that we're doing as well as in parallel making sure we have longer term supply. So that's what you're seeing with that announcement.
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Interviewer8:53
When you talk about a supply chain, I think about the concessions you're able to get out of your suppliers. I know that you're trying to keep costs down. You're under a threat of tariffs or you already face tariffs in a lot of the places you produce. How much of those tariffs have you been able to pass through to consumers where you haven't been able to cut costs or get concessions from suppliers?
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Mary Barra9:14
I think if you look at our portfolio, I think for the most part we've worked to offset it. And with efficiencies across the board, making smart decisions on where we produce. And so very little has gone to the consumer because we are such a cost sensitive business and it's such a competitive business. But we continue to look at all of those levers and we stay focused on consumer affordability.
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Interviewer9:43
You're operating right in the heart of America, and America has undergone some really tough times, especially over the last few weeks in Minnesota. What are you doing? What is General Motors doing to kind of keep the temperature down, to kind of keep the calm at your company and with your suppliers?
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Mary Barra9:59
Well, we want to make sure that everyone stays focused on the business and is part of the solution, meaning de-escalate. And I believe that's starting to happen. So that's what we continue to reinforce.