What is GM CEO Mary Barra Saying About the Future of EVs?

At a fireside chat hosted by the Automotive Press Association at General Motors’ new Hudson’s Detroit headquarters, the hot topic was how the company will navigate a cooling EV market and a volatile trade environment.

Mary Barra, CEO of GM, addressed the dual pressures of multi-billion-dollar tariff projections and the dismantling of federal EV incentives.

Despite these headwinds, the leadership remains resolute.

"Our destination is to get to the all-EV future we've been talking about," Mary said, though she conceded that the roadmap has become significantly more complex.

The company is now balancing its "North Star" EV ambitions with a "self-help" reorganising programme designed to shield its bottom line from geopolitical shifts.

Mitigation through domestic production shifts

GM previously projected that the Trump Administration’s tariffs on imported vehicles and parts would cost it an additional US$5bn in 2025.

However, Mary said aggressive internal restructuring enabled it to offset approximately 30% of that impact.

Mary explained that the moment the prospect of tariffs arose in late 2024, the executive team sought "no-regret moves".

This resulted in a US$4bn investment in US manufacturing during the summer of 2025. It included bringing the production of the Chevrolet Blazer and Chevrolet Equinox back from Mexico to the US.

Pragmatism amid regulatory disruption

While trade barriers have been a significant concern, Mary said that shifting regulations caused even more disruption in 2025.

The expiration of the US$7,500 US tax credit in September triggered a 43% year-on-year decline in EV sales during the fourth quarter.

Mary said: "We were headed to be 50% EVs from a regulatory perspective by 2030. Now, without the consumer tax credit… we are on a different path.”

This has forced a more "pragmatic" stance. While she maintained that "once someone buys an EV, they're 80% more likely to buy another EV”, she acknowledged the necessity of a transition period.

Consequently, the company will introduce hybrids where necessary to bridge the gap until charging infrastructure becomes sufficiently robust.

Reappraising the electric vehicle business

The transition has not been without significant financial pain.

On 8 January, GM revealed in a regulatory filing that it expects to record US$7.1bn in special charges for the fourth quarter.

This includes a US$6bn write-down related to a reappraisal of its EV business and production plan changes.

Despite these figures, Mary defended the original strategy, saying: "As I go back and look, everything that we knew at that point in time we would have made the same decision.”

Restructuring operations and software goals

The financial charges also cover a US$1.1bn restructuring of the company’s operations in China, a market that has proven increasingly difficult for legacy automakers.

As GM adjusts its global footprint, it is shifting its focus toward high-margin software and driver-assistance technologies.

Mary highlighted the company’s roadmap to achieve "eyes-free" advanced driver-assist technology by 2028 as a key competitive advantage.

"We have to think, 'What will the regulatory environment be beyond 2028?'" she said, adding, "We will announce what vehicles we're refreshing when the time is right. I think we’re just getting started."

Consumer demand and infrastructure challenges

The broader industry is under similar strain, with Ford Motor Co recently posting US$19.5bn in costs related to its own vehicle lineup recalibration.

For GM, the path forward involves a careful balance between innovation and consumer readiness.

"We can’t get ahead of the consumer," Mary said.

She added that the lack of affordable EV models and the ongoing inadequacy of the charging network remain the primary hurdles to mass adoption.

However, she continues to believe in the technology. "Once we have more affordable EVs… I think people will pick EVs," she said.