GM This story is available exclusively to Insider subscribers. Become an Insider and start reading now.
Mary Barra, the first female CEO of a major automaker, is leading GM into an all-electric future.
Since becoming CEO in 2014, Barra has managed crisis after crisis, including the COVID-19 pandemic.
Considered the best GM CEO in decades, her bet on electric vehicles could secure her legacy.
Mary Barra had a few things on her mind as she stood under the 65-foot arched Design Dome at General Motors Technical Center in Warren, Michigan. It was early March of 2020. The COVID-19 outbreak had already forced the GM CEO to idle factories in China. And the virus had arrived in the US, presenting a nightmare scenario.
It would appear that during a tumultuous period for car production, US automakers may begin to focus on lower volume, premium-priced cars over cheaper alternatives.
A report by Reuters details an investor call from GM CEO Mary Barra, who stated that the company can deliver better results without stockpiling vehicles or padding sales volumes with low-priced, low-margin models.
US automakers have often opted to keep up production of higher-volume, lower-margin cars, appealing to a broad cross-section of buyers. As Jalopnik points out, the concept of Alfred Sloan, GM’s president and chairman in the 1920s until the late 1950s, was “a car for every purse and purpose.” But after a challenging period during the pandemic and the difficulty faced in sourcing semiconductors for production, by prioritizing sales of higher-margin cars, GM has been able to post solid profits for the first quarter.
GM Says Inventory Levels Will NEVER Return To Prepandemic Levels - You Will Buy What They Deem Profitable
Views : 2,014 | Category: New Cars | Source: | SOURCE: jalopnik.com
SHARE THIS ARTICLE In the old days, American automakers’ business strategy was, as Alfred Sloan’s GM put it, “a car for every purse and purpose.” The idea was that automakers wouldn’t make much on cheap cars for younger buyers but those buyers would stay brand loyal and grow up to buy cars the automakers do make a lot of money on. That hasn’t been automakers’ strategy for a few years now, but it seems the chip shortage has really pushed automakers hard in the opposite direction, which is bad news for those of us interested in cheap cars.
Opinions | The history behind the Empire State Building, and why it matters today David Farber The Empire State Building is lit green to celebrate Earth Day in New York City on April 22. The building turns 90 years old on May 1. (Andrew Kelly/Reuters) On May 1, the Empire State Building turns 90 years old in New York City. Its opening in 1931 was widely celebrated: “the world’s loftiest building,” cheered the New York Times. But as the Great Depression deepened its hold on the American people, the 1,250-foot-tall structure became a national symbol of economic overreach, mocked as the “Empty State Building.” The investors nearly drowned in a sea of red ink. Yet they held on.
Opinions | The history behind the Empire State Building, and why it matters today msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.