A top Wall Street analyst told General Motors CEO Mary Barra she was "kicking butt" on Wednesday at a conference for investment analysts in Detroit. He then asked her how much of GM's success had to do with the board of directors. Barra said GM's board is actively engaged in helping her run the company on a regular basis, something that's "pretty unusual," according to business experts. Barra said the board, consisting of a wide-ranging group of people including a Canadian, has a hand in all of GM's aggressive moves, from day-to-day market-moving decisions to bigger strategic moves to develop robot cars, electric vehicles and recent decisions that will include idling four GM factories in the United States and one, Oshawa Assembly, in Ontario. GM in the process will eliminate about half-a-dozen sedans from its offerings. "It's a very involved board," said Barra. "We've got to face the brutal fact and understand what's happening and seize opportunities as opposed — and lead disruption instead of being disrupted. As we start to think of something new or we see an opportunity, we have a discussion. And then we'll bring it up again at the next board meeting; or if things are moving so quickly, we all jump on a call." But that close collaboration doesn't mean Barra is a weak CEO — quite the opposite, said a business management expert. She's sending a message to the UAW and other unions that everything she does, she does with the board's support, said Erik Gordon, professor at the University of Michigan Ross School of Business in Ann Arbor. "It’s a sign of competence because she doesn’t have to hide stuff from her board," said Gordon. "Nobody would say Mary is a weak leader. If she continues down this path she’ll be one of the legendary leaders in the car industry.” Barra made the comments during a the annual Deutsche Bank Global Auto Industry conference in Detroit. CFO Dhivya Suryadevara also participated. Barra said GM is open to more partnerships similar to the one it has with Honda and SoftBank in developing self-driving cars in its GM Cruise unit. GM Cruise remains on track to launch a fleet of robot cars in a ride-sharing form in a major city this year, but GM must still figure out how to make that a viable business, she said. Finally, look for an all-electric vehicle future, said Barra, hinting that could include all-electric pickup trucks. A new GM? In a question-and-answer session, Morgan Stanley Analyst Adam Jonas said, "Investors come up to me all the time lately saying where (does) this come from? What GM is this? And it's not just great results. It's the actions you've taken very preeminently, getting out of Europe, having leadership in autonomous, restructuring from a time of strength." Jonas' swooning contradicts an investor note he issued last week where he had estimated GM's 2019 earnings will come in 30 percent below consensus and where he suggested a way the company could polish its image amid massive job cuts. "Several investors have asked us about the potential for a name change to accompany a radical strategic shift for the company," Jonas wrote in the Jan. 8 note. "We have no knowledge or strong opinion on a potential name change, but do not exclude the possibility of such an action being considered by GM's leadership to help foster perception and cultural change." Wednesday, after telling Barra that GM was "kicking butt," Jonas said he'd "be curious" to know the scope of GM's board involvement in the various moves Barra has made. Barra said GM's board involvement differentiates from most other automakers. "Our board is very engaged," said Barra. "It's very diverse. We have a very robust process where, every year, we look at what are the skill sets we need not for today but for the future. And that's what drives us as we do board refresh." While the role of a board of directors is formulating a corporate strategic plan and monitoring how the company does in executing the plan as well as being involved in the big strategic decisions that will change the shape of the company, "what boards do not do is get involved in the day-to-day management of a company. That’s what you hire Mary and her team to do," said Gordon. "The fact you can get them to just jump on the phone with you seems to be metaphorical," Gordon said. "She's saying, 'I have a great board that’s not asleep at the switch. And I have a great relationship with my board and these things I’m doing, I’m doing them with the full support of the board so, UAW or anybody else, if you don’t think I have the full support of the board, I have the full support of my board.” Diverse board The 12 board members have wide-ranging backgrounds, from government, education and national security to technology. GM is also one of the few companies to have gender equity on its board of directors, which is now composed of six men and six women. The board is also "fresh," said Barra. In June 2018, GM added Devin Wenig, president and CEO of eBay Inc., as a director. Then in October it elected Jami Miscik to its board. Miscik is an expert in global security and intelligence, having once served as the CIA's deputy director for intelligence. She currently serves as the CEO and vice chair of Kissinger Associates. More:GM's newest board member used to work for the CIA Given GM's recent harsh backlash by Canada's autoworkers' union, Unifor, against the carmaker's decision to shutter its factory in Oshawa and endanger 2,700 jobs, one of those board members is associated with Canada. Carol Stephenson, who's served on GM's board since 2009, served as dean of the Ivey Business School at the University of Western Ontario from 2003 until her retirement in 2013. She was also CEO of Lucent Technologies Canada from 1999 to 2003. Safety over money — for now GM is determined to bring to market a fleet of self-driving cars in the form of ride-sharing this year. The key roadblock is safety, then figuring out a profitable business model for it, said Barra. "Our plan has not changed," said Barra, but she added it is taking considerable time for the robots to master the crowded and complex streets of San Francisco, where GM Cruise is developing the technology. GM's development of Super Cruise technology, a semi-autonomous, hands-free driving technology available on the 2018 Cadillac CT6, will prove to consumers that "that we had a priority of safety before we launched that," said Barra. The challenge GM faces is finding a profitable business model with its GM Cruise cars, said Barra. "Safe technology is what opens up a trillion-dollar market. So we're going to get the safety to a point that takes the human driver out and makes this safer than a human driver first," Barra said. "We're not looking at a quick path toward monetization." Barra said GM wants to develop the technology and gain leadership in autonomous vehicles to create shareholder value and then find a way to commercialize it. More:GM's year of transformation: More robot cars, fewer traditional jobs More:GM predicts a profitable 2019 based on company transformation To help pay for those development costs, GM is open to more partnerships similar to what it has with Honda and SoftBank Investments. Honda will contribute about $2 billion over 12 years to help develop the self-driving cars. It will also finance a $750-million equity investment in Cruise, bringing its total commitment to the project to $2.75 billion. SoftBank will invest $2.25 billion in GM Cruise. "We are more than willing to work with others if we got the right foundation...and it leads to synergies that create shareholder value," said Barra. Electric future Last week, GM forecast a robust year for its global car sales due to its emphasis on making new or redesigned SUVs and pickups to reflect consumers shifting tastes away from sedans. In the United States, GM said it will maintain sales momentum despite eliminating five or six sedans. Barra said cutting the sedans should not hurt GM's buyer loyalty. "Our experience is once somebody moves into a higher stance vehicle, they don't want to move back," Barra said. GM has designated Cadillac to be its vanguard for electric vehicles as GM develops a new EV platform capable of supporting all-wheel drive, front-wheel drive and rear-wheel drive EVs. "Cadillac's been built on innovation and technology and if you look at what we're doing in China, we're working to build Cadillac back to what it should be there," Barra said. There is then the opportunity to roll EV technology to all GM's brands. When asked if that would include an electric pickup, Barra said, "We believe in an all-EV future. We haven't put a time (frame) into that because there's a lot that goes into that. I don't have anything to specifically announce right now, but given that we're committed to an all-EV future, I say stay tuned." Reliance on China In other product news, GM said it may not eliminate the Cadillac CT6 sedan despite announcing it will idle the Detroit-Hamtramck plant that builds the car. There are reports that GM might build the CT6 in China and import it after it ends production in Detroit, but a spokesman for Cadillac would not confirm that report. "We are looking at a variety of options. No decisions have been made," said Andrew Lipman, Cadillac's global communications director. While GM does look to rebuild Cadillac in China, it sees that market growing and feels good about its presence there, said Barra. "Over the next few years the market has potential to grow to 30 million" sold each year, said Barra, adding that Chevrolet, Buick and Cadillac are all "strong brands" in China. GM has long-term strong partnerships in the market too, making it "well positioned for how that market will unfold." Deutsche Bank's chat with Barra and Suryadevara came as GM continues to face harsh backlash following its announcement Nov. 26 that it would idle Detroit-Hamtramck, Lordstown Assembly in Ohio and Oshawa Assembly in Ontario by the end of 2019. It said it would also close transmission plants in Warren and near Baltimore. The restructuring move means GM will eliminate the vehicles — all sedans — built at these plants: Cadillac XTS, Chevrolet Cruze, Volt and Impala, and Buick LaCrosse. The Cadillac CT6's fate remains undecided. In all, about 6,500 hourly jobs are in danger, though Barra said that GM has a 2,700 openings in other plants in Flint; Spring Hill, Tennessee; and Arlington, Texas, where affected workers could transfer. She said about 700 hourly workers have been placed in other jobs. GM will also cut about 8,000 white-collar jobs in North America this month. Suryadevara said the actions will add up to $2.5 billion to GM's annual cost savings in 2019. Contact Jamie L. LaReau: 313-222-2149 or jlareau@freepress.com<doc-sep>As General Motors Co. undergoes a restructuring that will indefinitely idle four U.S. plants this year, the Detroit automaker plans to build more cars in America, CEO Mary Barra said. "We have more products coming that we will build in the United States," Barra told reporters after an appearance Wednesday at Automotive News World Congress in Detroit. Barra declined to comment further on GM's future product or manufacturing plans. GM announced on Nov. 26 a sweeping workforce and manufacturing restructuring for 2019 that will include idling five plants in the United States and Canada, and cutting some 8,000 white collar jobs. That restructuring effort is expected to save some $2.5 billion this year, helping GM to achieve what it expects to be a modest increase in earnings. GM is addressing an excess plant capacity issue at its Detroit-Hamtramck and Lordstown assembly plants by stopping work there later this year. "We have other plants that are lower in capacity utilization that we would want to increase," Barra said. "We need to make sure that we keep the capacity utilization up at other plants that we’re still working to improve." Less than a month after GM said it had 2,700 transfer opportunities for the 2,800 United Auto Workers employees affected by pending plant idlings, the Detroit automaker said Friday that 1,500 workers have volunteered to transfer and about 700 are already en route to new jobs in Michigan and Tennessee. GM also is looking for ways to keep selling the Cadillac CT6 in the United States after the Detroit-Hamtramck plant, where the brand's halo vehicle is built, stops production this summer. "We do have several opportunities," Barra said at the Automotive News World Congress, held in conjunction with the Detroit auto show at GM's Renaissance Center headquarters. She declined to comment on whether the CT6 could be built at one of GM's U.S. plants to avoid the cost of importing the vehicle from China. GM President Mark Reuss told The Detroit News this week that importing the CT6 from China would not be the automaker's first choice. As GM's $7,500 federal tax credit dwindles, Cadillac will lead GM's electrification push in the coming years. The luxury brand, which flashed a sneak peek of its first-ever fully electric vehicle ahead of the Detroit auto show Sunday, takes the baton from Chevrolet, which established an early-adopter EV following with its plug-in hybrid Volt, which will stop production later this year. The new, electrified Cadillac will be built on GM's next-generation EV platform. Dubbed BEV3, the new electric-car architecture will be designed to accommodate multiple body styles as well as front-, rear- and all-wheel drive options. nnaughton@detroitnews.com Twitter: @NoraNaughton<doc-sep>
General Motors CEO Mary Barra offered little hope Wednesday night to the employees at Detroit-Hamtramck and Lordstown assembly plants that new vehicles will be assigned to the plants to keep them running. GM faces harsh backlash following its announcement Nov. 26 that it would idle Detroit-Hamtramck, Lordstown Assembly in Ohio and Oshawa Assembly in Ontario by the end of 2019. It said it would also close transmission plants, one in Warren and one near Baltimore. In all, about 6,500 hourly jobs are in danger. "When we made the very difficult decision about the plants impacted, we have other plants that have lower capacity utilization that we'd want to increase," Barra told reporters following a fireside chat she did at the Automotive News World Congress. GM told the Canadian auto union last week it would stick with its plan to close the Oshawa plant. Asked Wednesday if Detroit-Hamtramck or Lordstown could get one of the 20 new electric vehicles GM plans to bring to market in the next decade, Barra said, "We have more products coming that we will build in the United States and we'll provide opportunities." But she added, "We need to make sure the capacity is up at other plants that we're still working to improve." More:GM predicts a profitable 2019 based on company transformation More:Canada union chief vows to make Detroit auto show 'the worst' for GM Barra emphasized that she does understand the pain workers at the impacted plants feel. Her father worked in a factory as a die maker for more than 30 years, and she said she remembered people in her hometown losing their jobs when the factory closed. "I understand what that means and what it can do to a community," Barra told the audience during her fireside chat. She said GM is committed to working with affected communities to help workers find other jobs and get additional training. Also, Barra said that GM has a 2,700 openings at plants in Flint; Spring Hill, Tennessee; and Arlington, Texas, where affected workers could transfer. She said about 700 hourly workers have been placed in those other jobs. White-collar cuts GM will also cut about 8,000 white-collar jobs in North America. Of those, Barra said, "We had many people who volunteered to take a voluntary separation package. We have additional work to do." She said GM is working on the white-collar involuntary separations, but she declined to share further details or a time frame for when they would be complete. GM said the actions will contribute $2.5 billion to GM's annual cost savings in 2019. Last week, the company forecast a robust year for its global car sales due to its emphasis on bringing either new or redesigned SUVs and pickups to various markets. In the United States, it said it will maintain sales momentum despite eliminating five, possibly, six sedans from its product offering. GM may not eliminate the Cadillac CT6 sedan despite announcing it will idle the Detroit-Hamtramck plant that builds the car. Barra said Wednesday the CT6 is "an incredibly important product" and GM has "several opportunities" in terms of where it is built. There are reports that GM might build the CT6 in China and import it after it ends its production in Detroit, but a spokesman for Cadillac would not confirm that report. "We are looking at a variety of options. No decisions have been made," said Andrew Lipman, Cadillac's global communications director. Contact Jamie L. LaReau: 313-222-2149 or jlareau@freepress.com