Mary Barra’s first year as the first woman to lead a global automaker was as difficult as her first year as CEO. Barra, who previously worked at General Motors, took the helm at GM in January 2014. Just weeks after joining the company, he faced a catastrophic recall of millions of GM vehicles due to defective ignition switches, some of which caused fatal accidents. accident. Barra spent much of her debut year on Capitol Hill testifying before lawmakers about why the flaws remained unfixed for so long.
It was an experience that made him want to quit before his second year, but Barra celebrated his 10th year in January this year. Leading the company through the recall crisis created momentum to reform GM’s culture and reorganize the organization for electric vehicles. rotation; also helped her earn the #1 spot on the MPW list from 2015 to 2017. Since then, she has guided GM to its strongest financial position since its bankruptcy in 2009, when the government was forced to provide the automaker with a financial lifeline. And this year, she reclaimed the top spot.
In the process, Barra joined an elite group. Reaching the 10-year mark is rare for a CEO of a publicly traded company, and even rarer for a female leader. The average tenure of a Fortune 500 CEO is 7.2 years for men and only 4.5 years for women. Of the 55 women currently leading Fortune 500 companies, Barra is one of only nine who have served as CEO for more than 10 years.
In order to live a long life, you obviously have to get results. GM brought in $171.8 billion last year, an increase of nearly 10% from the previous year and its best performance in 17 years. Late last year, the company reached an agreement with the United Auto Workers union, ending contentious contract negotiations and a costly historic strike. Despite lost productivity due to the strike, GM made $10.1 billion in profits and its stock price is up nearly 35% through 2024, a testament to Barra’s leadership.
That said, Barra’s biggest mark on the company remains, well, a question mark. The CEO promised GM an ambitious goal of having all-electric vehicles by 2035, but that effort has stalled a bit recently. (The company recently backed away from its previous goal of having the capacity to produce 1 million EVs in North America by 2025. It delivered just 38,355 EVs in the region in the first half of 2024.) GM also faces challenges with self-driving cars. Development is also a priority for Rose. The company’s self-driving subsidiary Cruise was forced to suspend operations after one of its vehicles had a serious accident with a pedestrian in San Francisco in late 2023. Cruise recently restarted its robotaxi efforts.
But, as Barra herself says, transformation is not linear. The CEO remains committed to his stated goals of zero crashes, zero emissions and zero congestion. It may just take some time to get there. Fortune caught up with Barra during a natural car ride and asked her about the past decade, today’s challenges, and the road ahead.
What is the secret to longevity?
Part of that is having a great team. But it’s also about being agile, staying aware of how the environment is changing, and being proactive rather than waiting or letting things happen. As you know, when I took on this role, we were a company in transition, looking to become a modern company in an industry undergoing transformation. Frankly, that transformation has only accelerated over the past decade. I would also say that I have a really great board of directors and I leverage my board and really bring out the best ideas in them.
You stepped into the CEO role at a difficult time in the company’s trajectory. How did that first year impact your leadership?
[This crisis]was an opportunity for us to do the right thing for our customers, to be transparent and to show that we are committed to ensuring that this never happens again. We have lived according to those values. We want people to speak up, and we have a policy that says if you see a problem, you need to say something. I always tell my employees that the best time to solve a problem is the moment you know there’s a problem. Because problems usually don’t get smaller, they get bigger.
One of the things you said at the time was that you don’t want the company to forget, you don’t want the past to be forgotten. How are you currently working, especially with new employees?
It’s interesting to tell this story because this week is the annual World Safety Week. And what I often say is that 40% of our technical talent and most of our salaried employees have been with us for less than five years, so we never want to forget. Therefore, you need to make sure they understand the importance and commitment to safety. Rather than just once a year, we will work on it in earnest once a year.
Defining the first year is very easy. I had to focus on righting the ship. Looking ahead to the current era, what do you think about your future as CEO?
By 2015, it was clear that the industry was changing. The way vehicles are propelled and the information inside them has changed, there’s so much software at the heart of the vehicle and so many things you can do with it. And of course autonomy. As a management team, together with our board of directors, we have decided that we are not going to wait for disruption. We will transform.
So in 2018, we launched a global EV production platform that enables everything from small things like the Equinox to super trucks like the Hummer and delivery vans like the Chevrolet Brightdrop. We have started working on the development. We bought a Cruze, but we also started working hard on our self-driving software, which continues to be rated as one of the best driver-assistance technologies. Then, continue to adjust your strategy every year and ask, “How do we navigate this transformation?”
How do you talk about and view the current economic slowdown within your company?
Will there be any impact on the expansion of EV demand?
Well, I had no idea that this would be a straight line, a linear transformation. There are 283 million cars in the US alone, so it will take a while to switch them up. We’re very proud of the work we’ve done to bring more affordable vehicles to the world.
We’ve been working on charging because once people feel like they can afford a vehicle and they’re not worried about range, then they’re worried about[charging stations]. Frankly, I think charging (progress) is a little slow, but it’s getting better every quarter.
I’ve always said that customers are very rational. This is a very expensive purchase. It’s also a bit of a fashion statement. Why do people choose cars? It is an integral part of their life. Many of our customers still name their cars. Therefore, we want to be able to use it immediately when we need it.
Is it easier to change during times of crisis or times of comfort?
I think what is fundamental is our actions. In the early days, when people were writing about General Motors’ culture and what problems it had, I asked myself, “What is culture?” This is a story that collects what people feel every day. Do they come home every day and say, “What? I’m really excited to have the resources I need. ” Or would you say, “I’m completely frustrated.” This is a really great thing you’re trying to do, but for various reasons you can’t do it?”
Focusing on behavior is something we’ve consistently championed: how can we actually demonstrate the behaviors that allow our employees to do their best work and feel valued? We continue to work on this. I think that’s a common element.
Last question. What are you driving these days?
That’s one of the best parts of my job because I drive a lot of different things, but right now I drive a Hummer SUV (the electric version). I love the four-wheel steering on this car. I love sitting in high places. I also own an internal combustion engine Blazer and ride it often. But right now, my primary vehicle is a Hummer SUV. I think it’s pretty cool.
Can you guess what color it is?
It’s black.
This article appears in the October/November 2024 issue of Fortune magazine under the headline “Marie Barra: General Motors CEO accelerates to the top.”