Barra: Oil Prices Have No Effect On Product Plans
Despite the ongoing drop in oil prices, General Motors CEO Mary Barra said her company would stay the course as far as fuel efficiency is concerned.
Per The Detroit Bureau, Barra was interviewed onstage by Automotive News editor-in-chief Keith Crane about her time as GM’s CEO thus far during the 2015 Automotive News World Congress held during this year’s Detroit Auto Show. While she said falling prices weren’t going to alter product plans, she didn’t know what the end result of the situation would end up being.
Barra also addressed the recall parade that took up the majority of 2014, proclaiming that GM has learned its lessons from the recalls, and vowing that “this sort of thing” will never occur in the future. She maintains, however, that she, senior management and top engineers had no clue about the ignition problems that kicked off the parade until it came to light via pre-trial testimony.
As far as GM being a large corporation weighed down by bureaucracy is concerned, Barra said such a view is inaccurate today, from how it conducts conferences, to how it evaluates employees and listens to its customer base.
Finally, she said she keeps an eye on the various subsidiaries GM has around the world, praising the strength of Opel in particular.
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I'm not The Professor, but I'll take a stab at translating Woman Auto Executive Speak into English. Despite the ongoing drop in oil prices, General Motors CEO Mary Barra said her company would stay the course as far as fuel efficiency is concerned. "We were completely unprepared for the unexpected 50% drop on gas prices, so at this point, GM will do nothing." While she said falling prices weren’t going to alter product plans, she didn’t know what the end result of the situation would end up being. "We aren't going to do, like, anything, and I have NO IDEA what will happen next!" ...GM has learned its lessons from the recalls, and vowing that “this sort of thing” will never occur in the future. She maintains, however, that she, senior management and top engineers had no clue about the ignition problems that kicked off the parade until it came to light via pre-trial testimony. "This sort of thing [crosses fingers behind her back] will NEVER occur in the future, because, like, I can't predict oil futures prices or GM product planning strategies, but I SO know what all the GM engineers, quality-control guys, accountants and assembly-line monkeys will do, totally!" As far as GM being a large corporation weighed down by bureaucracy is concerned, Barra said such a view is inaccurate today, from how it conducts conferences, to how it evaluates employees and listens to its customer base. "Um, ah, I read my cue card, just like I practiced!" Finally, she said she keeps an eye on the various subsidiaries GM has around the world, praising the strength of Opel in particular. "This job is totally bitchin', you give me so much ATTENTION and the guys in the suits can do whatever they want while you keep looking at ME... I like diamonds, and pearls, and I didn't even know we made Opals!"
And so GM remains stuck in reactive mode. In 2010 they released the Volt, as a reaction to the 2007 peak oil hysteria. Now that the last traces of that bubble are finally disappearing, GM is waiting for consumers to tell them that MPG is no longer an obsession. By the time that happens they will once again be 3 to 5 years behind the curve.
Hasn't the reality of steadily rising CAFE standards already made this decision for them? No seriously, I'm asking...
GM's product portfolio is partially (mostly?) dictated by cafe standards. It's not oil prices that changes the course of the GM monolith, it's government regulation. That makes this entire thread somewhat pointless, but still interesting. Yeah, she's a looker too.