Where people cannot really go to showrooms . What is the bigger problem, selling the car as you want to make, or making the cars that you are used to making . Biggest challenge early on was getting back so that we could make vehicles. We had a lot of work to do to make sure we took all the necessary precautions, learned lessons from china, korea, from our work in making ventilators and masks, and putting that to practice to bring people back to build vehicles. I am proud of how will the team adapted to working from home, and our dealers who have been great partners, going mostly online for the sales process, and developing a clean delivery system. Everyone adapted fairly well. Lifelongu were a General Motors person, you grew up in michigan, your father worked at pontiac. Stanford Business School and then came back to General Motors, worked her way up. Havee last six years, you been the ceo of the company. You worked through the Great Recession, also through 9 11. Compare this situation, covid19, to lets say 9 11, and then the Great Recession, in terms of its impact on General Motors . Each of them impacted gma network in way. 9 11 was a demand challenge, doing what we could do to get people moving, participating in the economy. The 2008, 2009 recession was very impactful for the company. We went bankrupt and had to restructure. Learnedof the lessons from those two different situations, the work we have done since the 2008, 2009 timeframe, we were much better prepared, our Balance Sheet was much more healthy, and that has allowed us to continue key programs and be able to whether this situation much more productively than what had happened in the past. Think it isont because a woman is a ceo that you are better prepared . Becauseo, i think it is of the work that we had done as a team. We are really focused on the future. David when you joined General Motors, obviously a woman has never been ceo or chairman of the board. Did you think that when you joined after standard stanford Business School, then you could become ceo . Mary not at all. It was a few months after i was named indisposition did i think that i would ever be here. I really enjoy different parts of the company. It was not something i set out to do although i always wanted to look for a two days to contribute on a greater scale. When you became ceo, did you hear from High School Friends who send a new you would be successful, people wanting discount on automobiles, things like that . Nice a lot of people sent notes of congratulations, people i have not spoke to in a while. Not too many requests for discounts. David back to covid19. When you decided you have to shut down your manufacturing facilities, you decided in march that you could not protect the health of your workers, or was the state of michigan wanting to send your employees home . What forced you to send your employees home . Mary we were working with the state and our unions, understanding the situation we were all in together. Muche time, there was so no one understood, so we made the decision slightly before the their efforts across all industries. It was working in partnership with all the different parties to do what was in the best interest of all of our employees. Did you close all of your manufacturing facilities in the United States basically . Mary we started out and closed through our facilities in china. As they started up, we were moved to the United States and closing them. There were some essential operations that kept running. Our Customer Care and after sale warehouses, for instance. They needed to continue providing parts to dealers to fix vehicles. A vehicle has become so important during this phase. David while you shut down the facilities and send workers home, for low income is that the expression you would use . At General Motors, it is called a layoff. All of ouricies for different employees, what happens in that situation. We followed the policies or the agreements that we have with our union. Does how many employees General Motors have that were laid off, out of the total number that you have . Probably 30,000 employees could still work from home. We have about 80,000 employees in the United States. The balance were on some form of layouts. Is laidhen somebody off, they are not getting compensated, getting health benefits, presumably . Mary pretty much across the board, for our employees across the United States, 75 of their straight time pay that they would be getting, some of that is made up of either the company paying in combination with what Unemployment Benefits would be. Now, what percentage of those laid off are coming back as you begin to we open your manufacturing facilities . Mary virtually all. Employees andtive salaried employees who could not work from home are primarily back. We had a few places where we are calling people back in places of the country, but with the most part, everyone will be back shortly. David when the facilities were closed, the u. S. Government said can you make ventilators and masks . There was some controversy back and forth. Were you agreeing voluntarily, forced to do it . What was the real story on that . David i got in the mail in midmarch asking if we would be willing to work with a Company Called vent tech. I am so proud of the team because we started a dialogue. ,rom when the team first talked a month later, they were producing ventilators. We were working with the department of health and human services, all the different areas, the fda. There was some confusion which has since been worked through. We got a contract. But wed enact the dpa, were already on our way, committed to building ventilators. There was a little bit of a misunderstanding. Its been worked out now. We are on a path to make 30,000 ventilators that we will complete in the august timeframe. David does the country need all of these ventilators anymore . Mary i know early days we were shipping right to hospitals. Its a combination of need right now, to make sure we have the right number of ventilators in the right locations. Also theres an interest in having a national stop, as we go forward as a country. If you are good at manufacture automobiles, why does that mean you are manufacturing ventilators . Is the skills transferable . Mary as we started making wasilators, vent tech making about 300 a month, and we wanted to wrap that up to make 10,000 a month. Managers and product manufacturers throughout the almost, quality systems, everyone in the company, there were different functions that people played a role. The key ingredient was our automotive supply base. Of the mental later, depending on which ventilator, 200 to 300 parts came from a brandnew source. Automotive suppliers said i can make that part, and were able to make them, prototype them, and have them production ready within that month. We are indebted to our supply base. The auto to what industry knows how to do, and that is billed at scale. David everyone in the white house is happy with you, you are happy with them now. All of that is behind you. Mary correct. David let me ask another aspect of the General Motors, managing remotely the company. You have an office your main office is where . Mary in detroit, michigan. Companyou manage your from there, have been doing for many years. When this came about, did you move to your home to manage the company . Was that hard to do . David we all moved home mary we all moved home. I miss the facetoface interaction but we quickly moved to conference calls. We are used to conference calls, different meeting technologies, because of the Global Operations we have. On earlymorning calls with china, korea, evening calls, etc. It just became how we did business across the board. I think we adapted quite well. We had to learn what it meant when the day did not have the office start and end. People found themselves working incredibly hard. We had to remind people to have some balance with their work. The transition was pretty seamless. With whom iceos have talked have realized they can do a lot remotely, and their employees do. Many are not rushing to come back to work. Some want to stay doing things remotely. Is that your experience or do you ultimately want to bring people back . Mary i think we will bring people back. But we have so many different functions. Many people have to be at work and cannot complete their responsibilities. Some can do virtually everything from home. We have seen variation across the globe. We will survey with our employees, find out what works well for them, but also knowing face to face time is important to make sure that we maintain our culture, to the collaboration and innovation that we do together. It will definitely be a blend. We will have more people working from home than in the past. David when the Great Recession happened, Automobile Companies sought a bailout. This time, none of the Automobile Companies did that, other industries did. Is that because the industry is stronger, has more cash than before . Mary everybody took different steps. Clearly, that was an incredibly difficult time for the auto industry. We were very disciplined as we moved forward to make sure that we had an Investment GradeBalance Sheet that positions us to whether a storm like this. On a regular basis, we model all sorts of impacts to the business as part of our Risk Management process. Play asll of those into resorted started to face this situation, especially the unknown nature, when you think back to march. David when you go back to work in your office, will you have to wear a mask, will you take peoples temperatures, what kind of requirements will you have . What kind of requirements will you have with people on the Assembly Lines . Mary we have the same requirements regardless of where you work. Answer a few short question to understand if you have had exposure to covid, if you are not feeling well. We can then send you to a medical professional and can be tested if they deem appropriate. You will have your temperature scanned. Andtion of cleaning disinfecting across the different work areas, regardless ourhether it is one of facilities that manufacture parts, or one of our office areas yes, youll be required to wear a mask. We will continue to learn. But right now without the vaccine, the virus is still there. We have found masks to be probably the number one thing from an effectiveness perspective of stopping the virus inside the facilities, both office and manufacturing. Last year, 2019, you manufactured and sold roughly 7. 7 million vehicles. 2. 9 million in the United States. Mary that sounds about right. Sell morerefore, you vehicles outside of the United States than in the United States. Is that correct . We have significant operations where we have the number one market share. There is a though bit of a downturn even before market,s still a large around 24 million. When you look at the u. S. Industry, last year, about 17. 5. These other markets together are quite large. We have strong presence in those markets. That is how the numbers stack up. David do you anticipate because of usmca, trade agreements with china, that more things would be manufactured in the United States than a year ago, or will it be about the same . Roughly the same. We have had to make a small amount of adjustments as we come into compliance with usmca. Our primary pathway was to build where we sell. Almost everything we build in china is for the chinese market. There are some exports, we do some importing into china. North america is the same. Whether it is the supply base and parts or the vehicles are assembled, is more regional. It just makes sense from a logistics perspective as well. A new i have not bought car in a while, so i guess im a good prospect, but when you go in, you always have to negotiate. Is that still a part of the buying process, negotiating with the salesman, or does that not happen as much anymore . Mary that is still a part of it, but doing a lot of things see us you will continually improve the process Going Forward and focus on what the customer wants. When the dealers are open again and somebody comes in, will they have to wear a mask, does it depend on the state they are in . The dealers will not require someone to wear a mask when they come in, how will that work . Of our dealers are independent businesspeople. We have shared our data with them, suggesting why it is the keepinge of defense for people safe. Already we are clearly seeing different behaviors across the United States depending on each state, but we are strongly recommending masks, for both the customer and the dealer employers. David there has not been a lot of travel around the world, therefore people have not been driving as many cars, hurting lyft and uber. Does that adversely affect you when people are not driving as much . Mary i dont think so. They each have a certain requirement to have a certain latemodel vehicle to drive for their company. We are also seeing people interested in having their own vehicle. Situation, you know the cleanliness of your own vehicle. It is too early to tell what the longterm effects will be. Has gone bankrupt. I assume they bought a fair number of cars from you. Will that affect you adversely or not a huge impact . Mary it will not have a big impact. General motors has worked over the last few years to minimize our sales into rental fleets. We focus on the commercial business and then the retail customer. It will have an impact but not a huge impact, because of the level that we had gotten to because of a rental car perspective. David what about electric cars . Tela has tesla has a higher market percentage than any other company. Our electric cars going to be a part of your mix at General Motors . Mary absolutely. Before covid hit, we had an ev day. We took them through our technology from a battery perspective. Launching next year. Hummer announced the gmc ev. Brandac will be a lead for developing and selling electric vehicles. In the end, we believe in an all electric future. We believe the transition will happen over time. Because we are a fullline manufacturer, we need to make sure we are providing options for the entire marketplace. We are really excited. In my almost 40 years at being at General Motors, this is one of the most exciting times as we transition to electric vehicles. Transition,you say do you expect in 10, 20 years General Motors will produce only electric vehicles . Mary i think it will happen over a printer of decades when you look at the transition. 250 million cars. Transitioning will take some time. When you think of a different use cases, affordability. That is why we are working hard to make sure we are in a Leadership Perspective with battery technology, so that evs are affordable for everyone. It will happen in a longer time period, but it will happen. David you also announce that you are producing electric vans. Is that going to be replacing automobiles, just a different part of what youre doing . We have a limited business right now in commercial vehicles. We see that as a huge opportunity. As Companies Look at what their Carbon Footprint is, the environmental pledges they will make, if they have any of their business that is a delivery or a fleet need, having commercial vehicles that are all electric to meet those needs are going to be very important. We think we can provide a good value equation with the cost of ownership. Growthk it is a huge opportunity and accretive to our business. David what car do you drive . Of our get to drive all vehicles, which is one of the best parts of my job. Right now im driving a cadillac xt6. But im constantly switching, testing our vehicles, understanding them in the marketplace. David when your cars are being developed, do they ask you to drive them on the test track . How do you approve a new vehicle for production . Do you have to tested every time . Mary absolutely. We go through a tremendous amount of validating and testing for every product. I used to go out to our proving grounds almost every friday and drive vehicles at different stages of development. I dont have as much opportunity and there are people more qualified to do that work, but it is an important time to developing a vehicle, getting in the vehicle, driving, understanding how it performs, all aspects. David do you ever drive competitors cars and get ideas from them, or are you not allowed to be seen in those cars . Mary i do. When we are driving our new vehicles, we are also seeing what we are competing against in the marketplace. We are constantly taking a full view of the market. Avid when you are driving car and need gasoline, do you else . He gas like anybody do the people at the gas station say you are the ceo of General Motors, you should not be pumping your own gas . Reason whyt see any i should not be pumping my own gas, and i do. I usually dont have a conversation with anyone. Today, as you look at General Motors and the overall u. S. Economy, are you comfortable the economy can come back and you can do reasonably well this year . I assume you will not sell as many cars this year as last year. The market will be down in the United States this year. It is too early to tell how the market will rebound. Sell evenontinued to through the early months and weeks of covid. We continued to sell. It is starting to recover but we are not back to a comparable week last year. We think it will be down. It really dep