WEBVTT - Chief Future Officer: GM CFO Paul Jacobson

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<v Speaker 1>The iconic American car company GM is in the midst

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<v Speaker 1>of a dramatic transformation. We really feel General Motors is

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<v Speaker 1>moved from being an automaker to really a platform innovator.

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<v Speaker 1>The shift comes with ambitious goals to sell a million

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<v Speaker 1>electric vehicles in the United States and China by the

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<v Speaker 1>middle of this decade and to phase out production of

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<v Speaker 1>all gas powered cars and trucks by With e V

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<v Speaker 1>penetration still in single digits, it's a bold bet on

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<v Speaker 1>the future of mobility. The shift to electrification and ultimately

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<v Speaker 1>autonomous vehicles is probably the most transformative thing that's happened

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<v Speaker 1>in the auto industry, maybe since Henry Ford's assembly line.

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<v Speaker 1>It's monumental. We've got an industry that's it's really stayed

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<v Speaker 1>about the same for about fifty years. The thing that's

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<v Speaker 1>different now if you've got a confluence of what we

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<v Speaker 1>call case connected, autonomous, shared, and electric that are really

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<v Speaker 1>new things in a quantum way to the industry. GM

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<v Speaker 1>plans to put thirty five billion dollars behind it's push

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<v Speaker 1>into electric and autonomous vehicles. But the year that's where

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<v Speaker 1>CFO Paul Jacobson comes in. I see the role of

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<v Speaker 1>finances really being two fold. Number one is making sure

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<v Speaker 1>that we're supplying the information on how we think those

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<v Speaker 1>decisions in that transformation we're going to project out financially.

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<v Speaker 1>And then number two is make sure that we get

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<v Speaker 1>the right resources in the right place at the right time,

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<v Speaker 1>which can be challenging with so many different directions and

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<v Speaker 1>so many opportunities ahead of us. He's been a great

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<v Speaker 1>partner with what we're doing. This is not a substitution

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<v Speaker 1>business that we're in in the short term and long term,

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<v Speaker 1>or rather an additive business. It's a company that's focused

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<v Speaker 1>on tech. It's a focused company that's focused on revenue diversification,

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<v Speaker 1>and with that there's a lot of margin expansion up

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<v Speaker 1>the head. You've got to be optimistic about the future

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<v Speaker 1>and making sure that we're allocating capital into the right

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<v Speaker 1>places to fund the transformation. For ninety consecutive years, General

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<v Speaker 1>Motors sold more vehicles in the United States than any

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<v Speaker 1>other manufacturer. That streak ended in one when Japanese rival

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<v Speaker 1>Toyota took the crown. Jim still recorded record profits in

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<v Speaker 1>Paul Jacobson's first full year as CFO, and that's a

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<v Speaker 1>good financial foundation for the task ahead. If you have

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<v Speaker 1>a dashboard that you've ad a CFO and you're looking

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<v Speaker 1>at the e V transformation right now? What's green, what's yellow?

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<v Speaker 1>And are there any reds on that dashboard? Well, I

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<v Speaker 1>think we live in a world that seems to be

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<v Speaker 1>read for everybody right now, and that's been one of

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<v Speaker 1>the one of the challenges. I mean, since I arrived

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<v Speaker 1>here a year and a half ago, it's it's really

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<v Speaker 1>been about the semiconductor challenges, the map for weekend, coomic challenges,

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<v Speaker 1>supply chain, etcetera. But all of that is just part

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<v Speaker 1>of transformation, right Not everything goes according to plan, and

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<v Speaker 1>you've just got to make sure that you set your

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<v Speaker 1>sights on the horizon and make sure that we continue

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<v Speaker 1>to track to it. I think the team is doing

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<v Speaker 1>an extraordinary job. There's a lot of uncertainty out there,

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<v Speaker 1>and that's one of the things we have to manage.

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<v Speaker 1>We're blessed with a tremendous balance sheet. The team has

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<v Speaker 1>done an amazing job funding the pension, paying down debt, etcetera,

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<v Speaker 1>which puts us in a position where I don't actually

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<v Speaker 1>have an aversion to using the balance sheet to continue

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<v Speaker 1>on our path. If we need to temporarily chip shortages

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<v Speaker 1>and supply chain disruptions have driven global car sales volumes

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<v Speaker 1>down from their peak, but it may have long term benefits,

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<v Speaker 1>forcing companies like GM to tear down silos and bring

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<v Speaker 1>teams together to find solutions. We actually, as a management team,

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<v Speaker 1>all the senior leaders of the company get together once

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<v Speaker 1>a week and we've been doing that for a year

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<v Speaker 1>and a half to talk about here's what the forecast is,

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<v Speaker 1>here's what we're going to do to mitigate it, and

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<v Speaker 1>here's how we're going to respond. And it's been one

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<v Speaker 1>of the most amazing examples of collaboration I've ever seen

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<v Speaker 1>in my career. No longer do you have to look

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<v Speaker 1>to uh, different functional leads or vice presidents that would

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<v Speaker 1>lead product development or design or sales or marketing or

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<v Speaker 1>whatever that is. You know, it's really it's really everybody's together.

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<v Speaker 1>Our staff meetings are together. It's very very very much

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<v Speaker 1>one team. And that's changed everything. We've already talked about

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<v Speaker 1>how we are simplifying the chip structure, can going to

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<v Speaker 1>three chip families. That's going to put us in a

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<v Speaker 1>position where we're not as beholden to hundreds and hundreds

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<v Speaker 1>of chips depending on which vehicle where any one of

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<v Speaker 1>them might hinder production. So lots of things across the

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<v Speaker 1>horizons that we're doing to make sure that this becomes

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<v Speaker 1>much much easier to navigate. In the future, the transition

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<v Speaker 1>to electric vehicles will bring a fresh set of challenges.

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<v Speaker 1>Global demand from metals used in batteries is already putting

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<v Speaker 1>pressure on supply chains and driving costs higher. Well right now,

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<v Speaker 1>commodities prices for those commodities that are like lithium, like

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<v Speaker 1>cobalt that are used in uh e V batteries have sword.

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<v Speaker 1>Those materials also not are just expensive, they're generally in

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<v Speaker 1>places that are have geopolitical issues. How do you address

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<v Speaker 1>the row material issues between things like lifing um and

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<v Speaker 1>things like nickel. There's gonna be a shortage of how

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<v Speaker 1>do you make sure you have that at a price

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<v Speaker 1>you can affords you don't have a rapid spike up

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<v Speaker 1>in the price. We're really looking at a multifascined approach,

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<v Speaker 1>anything from traditional supply chain procurement type functions all the

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<v Speaker 1>way to joint ventures or longer term contracts. It's not

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<v Speaker 1>about capturing the best price today. It's about capturing that

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<v Speaker 1>consistency of the business model that we can plan around

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<v Speaker 1>and anticipate going forward to make it easier to UH

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<v Speaker 1>to fund this transformation. But while Jacobson takes steps to

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<v Speaker 1>head off headaches, he's also aware that GM's electric future

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<v Speaker 1>holds huge opportunities. I think the most exciting thing about

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<v Speaker 1>the ev transformation is it's fundamentally going to change the

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<v Speaker 1>way we make money at General Motors because if you

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<v Speaker 1>think about it, the overwhelming majority of our profits come

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<v Speaker 1>from the time that we sell a vehicle to a

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<v Speaker 1>dealer right and um, and that vehicle enjoys a lot

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<v Speaker 1>of revenue for very different companies over the life of

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<v Speaker 1>of it on the road. What the electric vehicle and

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<v Speaker 1>what connected vehicles are going to do for us and

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<v Speaker 1>is increase the revenue opportunities for us over the life

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<v Speaker 1>of that vehicle second owner, third owner, fourth owner, because

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<v Speaker 1>we're gonna be able to offer ways through over the air,

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<v Speaker 1>updates to customize its subscriptions, various services, insurance packages, lots

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<v Speaker 1>of different ways that we can interact with the customer

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<v Speaker 1>in ways that historically we haven't been able to. How

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<v Speaker 1>much of your top line total going to come from

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<v Speaker 1>selling vehicles as opposed to the services that you've just

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<v Speaker 1>been describing. So if you go back to our investor

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<v Speaker 1>day last year, we talked about doubling our revenues while

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<v Speaker 1>expanding our margins by the doubling of the revenues are

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<v Speaker 1>coming both from growth and auto sales because there's a

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<v Speaker 1>big overlap and we're getting new customers every day on

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<v Speaker 1>electric vehicles, the ones that we're taking reservations and orders

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<v Speaker 1>for right now. So what we talked about is twenty

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<v Speaker 1>billion dollars a year of revenue in around these services

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<v Speaker 1>that we can provide going forward. So it's a massive

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<v Speaker 1>growth off of what we've currently experienced with on Star

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<v Speaker 1>historically and really excited about what that's going to bring.

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<v Speaker 1>GM also expects significant growth to come from Cruise. It

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<v Speaker 1>owns eight of this startup that's developing autonomous vehicles. Despite

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<v Speaker 1>considerable investment in advanced technology, the company has resisted the

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<v Speaker 1>temptation to spin off these units. So far. Is there

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<v Speaker 1>a world can you envision, as the chief financial officer?

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<v Speaker 1>A world in which you say, you know what, there's

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<v Speaker 1>an old business is a new business we should trade separately. Well,

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<v Speaker 1>there's a lot of commonalities between the businesses. Right, So

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<v Speaker 1>about seventy of the vehicles are the same, right. They

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<v Speaker 1>both need breaks, they need windows, they need features inside

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<v Speaker 1>the vehicle seats, et cetera. So everything that we can

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<v Speaker 1>do to make the ICE vehicles more efficient and more

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<v Speaker 1>uh appealing to the customer is only going to help

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<v Speaker 1>us with our e V transformation. And that's why that

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<v Speaker 1>integrated approach is so critically important to fund that journey

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<v Speaker 1>for us going forward. Investors have indicated that they're along

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<v Speaker 1>for the journey as well. Since July, shares of North

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<v Speaker 1>American automakers have significantly outperformed the SMP five hundred, even

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<v Speaker 1>after broader economic and geopolitical turmoil dragged them down from

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<v Speaker 1>their peak. The last two years. They have doubled their

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<v Speaker 1>commitment to what they're going to spend in electrification across

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<v Speaker 1>the industry, and a lot of that was rewarded by

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<v Speaker 1>by Wall Street. Um the companies will now need to

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<v Speaker 1>deliver on be prepared to deliver on that, you know,

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<v Speaker 1>post supply chain strained world. Part of your job is

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<v Speaker 1>to make sure that the Wall Street is getting the

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<v Speaker 1>message that you want them to have about General Motors.

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<v Speaker 1>Where are you in that right now? Where is General

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<v Speaker 1>Motors in the perception on Wall Street of the extent

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<v Speaker 1>to which it really is a tech company on the forefront.

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<v Speaker 1>You know, I think the challenge with what we did

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<v Speaker 1>is we put out ten year goals. That's something that

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<v Speaker 1>was kind of unheard of in the industry as well

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<v Speaker 1>as as here at GM. And now what we've got

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<v Speaker 1>to do the next phases make sure that we're giving

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<v Speaker 1>a roadmap to investors out there to say, here's what

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<v Speaker 1>you can expect to see in the next two to

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<v Speaker 1>three years. And as you see that, you should increase

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<v Speaker 1>your confidence that we're on the journey to get where

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<v Speaker 1>we need to be in UM. The Wall Street perception

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<v Speaker 1>of this change is almost UM, you know, weekly or monthly,

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<v Speaker 1>which is fine. Our goal is nothing more than execution

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<v Speaker 1>at this point. As you produce and execute, the confidence

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<v Speaker 1>will grow. UM. Nothing is going to take us off

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<v Speaker 1>track from that execution. We know we have the right strategy,

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<v Speaker 1>so that will come. This is about the long term.

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<v Speaker 1>We're not running the company for the stock price today.

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<v Speaker 1>We're running the company for value creation over the long term,

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<v Speaker 1>and I feel like we've got a really really good

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<v Speaker 1>hand to play. General Motors CEO Mary Barra and President

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<v Speaker 1>Mark Royce are not only auto industry veterans, their second

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<v Speaker 1>generation GM employees, following fathers who both worked at the company.

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<v Speaker 1>Paul Jacobsen's new to the car business. He launched his

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<v Speaker 1>professional career at Delta Airlines, including seven years as CFO,

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<v Speaker 1>before joining GM in December. I started with Delta back

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<v Speaker 1>in a financial analysts on a business school and UM

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<v Speaker 1>just had an incredibly left career there to be able

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<v Speaker 1>to see and do so much and got to be

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<v Speaker 1>treasurer through the bankruptcy, which as a corporate finance person,

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<v Speaker 1>bankruptcy is the best experience you never hoped to repeat UM.

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<v Speaker 1>But it gave me a really good platform and how

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<v Speaker 1>to make deals and how to think strategically across the board.

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<v Speaker 1>Mark Royce appreciates what Jacobson brings to the mix, and

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<v Speaker 1>there's some the airlines or the auto business. UM focusing

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<v Speaker 1>on the customer and being best at UM satisfying our customers,

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<v Speaker 1>whether to be designed, whether it be the actual vehicle

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<v Speaker 1>and the entry itself, the experience in buying, the experience

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<v Speaker 1>of the dealer, whatever that is. UM. You know, committing

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<v Speaker 1>resources those places to grow that top line is what

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<v Speaker 1>it's all about. And he's proven to be a perfect

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<v Speaker 1>partner for that that delta. We're a company that is

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<v Speaker 1>focused on customer service and I had, you know, the

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<v Speaker 1>opportunity to learn from Richard Anderson and at Bastion on

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<v Speaker 1>the finer arts of leadership and transformation through a company

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<v Speaker 1>that went through a lot. Uh here, it is very,

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<v Speaker 1>very different. Working for a manufacturing company is amazing. I

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<v Speaker 1>tell my wife all the time, it's it's amazing to

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<v Speaker 1>be around people who build things. GM's transition to an

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<v Speaker 1>all electric future is built on a proprietary battery pack

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<v Speaker 1>called Ultium. It's building four factories to produce the batteries

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<v Speaker 1>while it retools for existing assembly plants to ramp up

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<v Speaker 1>e V production. The objective to create a scalable platform

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<v Speaker 1>that eventually drives down losts. Paul Jacobson took me to

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<v Speaker 1>the laboratory where this technology is taking shape. So we're

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<v Speaker 1>in the heart of one of our battery testing labs

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<v Speaker 1>where we test all aspects of the battery resiliency, extreme temperatures, shaking, vibration, etcetera.

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<v Speaker 1>How much you're investing in R and D for the

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<v Speaker 1>battery at this point. So we are investing a ton

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<v Speaker 1>into battery technology, but it's not all just us. So

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<v Speaker 1>around us we've got the testing facilities. We're also building

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<v Speaker 1>a new manufacturing cell manufacturing test facility where we're gonna

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<v Speaker 1>test different ways of manufacturing cells. Because it's one thing

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<v Speaker 1>to look at chemistry and say this is superior, but

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<v Speaker 1>can you replicate it millions and millions of times across

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<v Speaker 1>the entire portfolio. So we're in execution mode. We're producing

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<v Speaker 1>cells uh now at Lordstown and we'll be rolling those

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<v Speaker 1>out soon. We're already have these cells and Humor EV

0:12:52.640 --> 0:12:55.640
<v Speaker 1>and the Cadillac lyric as well. But as far as

0:12:55.679 --> 0:12:58.680
<v Speaker 1>technology and chemistry goes, I think we're just kind of

0:12:58.720 --> 0:13:00.720
<v Speaker 1>the beginning of where where the might go over the

0:13:00.760 --> 0:13:03.720
<v Speaker 1>long term. Do we go to solid state or or what.

0:13:04.040 --> 0:13:08.120
<v Speaker 1>So we're looking really at a portfolio approach to make

0:13:08.160 --> 0:13:11.640
<v Speaker 1>sure we capture the highest probability of being successful. So

0:13:11.720 --> 0:13:13.280
<v Speaker 1>as you go to scale and you have those millions

0:13:13.320 --> 0:13:16.200
<v Speaker 1>of millions of time the vehicle comes off the line,

0:13:16.280 --> 0:13:18.800
<v Speaker 1>whatever that is in the future, right ten years down

0:13:18.840 --> 0:13:21.800
<v Speaker 1>the road, what percentage of the cost of the vehicle

0:13:21.920 --> 0:13:24.480
<v Speaker 1>will be just tied up in a battery like that, Well,

0:13:24.520 --> 0:13:26.760
<v Speaker 1>the battery and the motor systems are sort of the

0:13:26.800 --> 0:13:30.880
<v Speaker 1>equivalent of the engine and the transmission today it is

0:13:30.960 --> 0:13:35.040
<v Speaker 1>it is costing more obviously for for those systems going forward,

0:13:35.080 --> 0:13:37.160
<v Speaker 1>but we think that technology is going to come down

0:13:37.840 --> 0:13:40.160
<v Speaker 1>over time as well, which is why we've said we

0:13:40.280 --> 0:13:44.280
<v Speaker 1>think we can get an electric vehicle to parody profit parody,

0:13:44.320 --> 0:13:46.480
<v Speaker 1>if you will, by the end of the decade. With

0:13:46.559 --> 0:13:50.520
<v Speaker 1>their ICE counterparts, evs may also be more profitable on

0:13:50.559 --> 0:13:54.200
<v Speaker 1>the labor side, at least in the manufacturing phase. If

0:13:54.240 --> 0:13:55.959
<v Speaker 1>you just looked at the power train of the vehicle

0:13:56.320 --> 0:13:59.600
<v Speaker 1>parts that are different in an ice versus above, there's

0:13:59.679 --> 0:14:04.320
<v Speaker 1>forty percent less labor hours in the in the assembly

0:14:04.559 --> 0:14:12.120
<v Speaker 1>of power train, so fundamentally there's less labor needed, but

0:14:12.240 --> 0:14:16.960
<v Speaker 1>certain engineering skills are likely to command a premium. We're

0:14:17.000 --> 0:14:22.240
<v Speaker 1>seeing auto companies on the engineering side UH out in

0:14:22.280 --> 0:14:26.520
<v Speaker 1>the marketplace competing for engineers that they're competing with video

0:14:26.560 --> 0:14:30.840
<v Speaker 1>game companies, UM, Silicon Valley companies, a different kind of

0:14:30.880 --> 0:14:35.160
<v Speaker 1>engineering software engineers, Are you really needed, and so there's

0:14:35.160 --> 0:14:41.400
<v Speaker 1>this big competition for that kind of UH employee and

0:14:41.400 --> 0:14:44.720
<v Speaker 1>and attracting them to the auto industry, which is considered,

0:14:44.720 --> 0:14:48.000
<v Speaker 1>you know, an old rust belt industry. We've been hiring

0:14:48.240 --> 0:14:52.600
<v Speaker 1>UM really aggressively over the last couple of years, UH

0:14:52.600 --> 0:14:56.640
<v Speaker 1>in software and chemistry and UH and just broad engineering

0:14:56.680 --> 0:14:59.200
<v Speaker 1>across the board. And what we found is people are

0:14:59.240 --> 0:15:01.520
<v Speaker 1>attracted to come the general motors. I think more and

0:15:01.560 --> 0:15:04.520
<v Speaker 1>more today employees are focused on I want to work

0:15:04.520 --> 0:15:07.000
<v Speaker 1>for a company that shares my values. And when you

0:15:07.040 --> 0:15:09.000
<v Speaker 1>look at what GM is doing in our pivot to

0:15:09.080 --> 0:15:11.480
<v Speaker 1>electric vehicles, we find a lot of people want to

0:15:11.480 --> 0:15:14.440
<v Speaker 1>be a part of that. US car buyers are also

0:15:14.480 --> 0:15:17.640
<v Speaker 1>getting with the program. Sales of fully electric vehicles group

0:15:17.680 --> 0:15:22.920
<v Speaker 1>by from one, with Tesla accounting for three of the

0:15:23.000 --> 0:15:27.360
<v Speaker 1>five top selling models. Yet hurdles remain, and the issue

0:15:27.400 --> 0:15:30.760
<v Speaker 1>of charging might be the biggest. If you think of

0:15:30.880 --> 0:15:35.520
<v Speaker 1>the reasons why people avoid an electric vehicle, now, four

0:15:35.800 --> 0:15:39.400
<v Speaker 1>of the top five reasons are related to charge. US

0:15:39.520 --> 0:15:44.160
<v Speaker 1>charging infrastructure is steadily improving, but consumers still worry about

0:15:44.160 --> 0:15:48.560
<v Speaker 1>being stranded without power on road trips. Paul Jacobson assured

0:15:48.560 --> 0:15:50.720
<v Speaker 1>me that when he takes the new Hummer e V

0:15:50.960 --> 0:15:54.320
<v Speaker 1>on long journeys, it's not just fun to drive, it's

0:15:54.320 --> 0:15:57.640
<v Speaker 1>equipped to go the distance. I hear so much about

0:15:57.720 --> 0:16:00.400
<v Speaker 1>road trip anxiety that I wanted to experience it self.

0:16:00.880 --> 0:16:03.160
<v Speaker 1>My family likes to drive a lot, so I brought

0:16:03.160 --> 0:16:05.680
<v Speaker 1>my daughter home from college in this and uh and

0:16:05.720 --> 0:16:08.480
<v Speaker 1>it was great. I mean, the computer system is all intuitive.

0:16:08.480 --> 0:16:10.640
<v Speaker 1>It tells you how to keep track of the battery,

0:16:10.640 --> 0:16:12.880
<v Speaker 1>It tells you where the charging stations are, tells you

0:16:12.880 --> 0:16:14.480
<v Speaker 1>how much power you'll have when you get to the

0:16:14.560 --> 0:16:17.960
<v Speaker 1>charging station. So it really puts a lot of your anxieties.

0:16:18.080 --> 0:16:20.280
<v Speaker 1>But as far as driving it, it is it's a treat.

0:16:20.640 --> 0:16:22.400
<v Speaker 1>So where are you on the charging stations? I know

0:16:22.440 --> 0:16:25.480
<v Speaker 1>General Owners has made an investment in one company. How

0:16:25.520 --> 0:16:27.720
<v Speaker 1>are we doing in this country generat and getting charging

0:16:27.760 --> 0:16:29.680
<v Speaker 1>stations in so? I think this is this is an

0:16:29.680 --> 0:16:32.360
<v Speaker 1>area where obviously we can we can continue to improve

0:16:32.400 --> 0:16:34.720
<v Speaker 1>as a country in a society, we're doing our best.

0:16:34.760 --> 0:16:37.880
<v Speaker 1>We've committed almost a billion dollars to e V charging,

0:16:37.960 --> 0:16:41.960
<v Speaker 1>so we've we've taken that and looked at home charging solutions,

0:16:42.040 --> 0:16:45.760
<v Speaker 1>local community solutions, and road trip charging solutions. What you know,

0:16:45.800 --> 0:16:47.800
<v Speaker 1>with my daughter, what we would end up doing is

0:16:47.840 --> 0:16:50.720
<v Speaker 1>probably stopping grabbing a bite to eat, plugging it into

0:16:50.720 --> 0:16:53.560
<v Speaker 1>a charger, usually a high speed charger, to get as

0:16:53.600 --> 0:16:56.080
<v Speaker 1>much charge as we can, and being there for twenty

0:16:56.120 --> 0:16:58.640
<v Speaker 1>to thirty minutes um, get us a lot of range

0:16:58.640 --> 0:17:01.120
<v Speaker 1>and by the time we've used that range, retired, ready

0:17:01.160 --> 0:17:03.840
<v Speaker 1>to stop again, etcetera. So it was it was a

0:17:03.880 --> 0:17:07.000
<v Speaker 1>really good experience for me, and it's taught me number one,

0:17:07.359 --> 0:17:09.879
<v Speaker 1>you know what, what are the concerns of the consumer

0:17:09.920 --> 0:17:11.760
<v Speaker 1>that are ultimately going to drive our vehicles? And then

0:17:11.840 --> 0:17:14.240
<v Speaker 1>number two, where do we need to focus on addressing

0:17:14.280 --> 0:17:20.560
<v Speaker 1>some of those anxious points for people. Despite COVID lockdowns

0:17:20.560 --> 0:17:24.639
<v Speaker 1>and supply chain breakdowns, General Motors delivered nearly three million

0:17:24.760 --> 0:17:28.399
<v Speaker 1>vehicles in China, and since China still tops the global

0:17:28.440 --> 0:17:31.840
<v Speaker 1>market for electric vehicles, GM expects its foothold to be

0:17:31.920 --> 0:17:37.560
<v Speaker 1>helpful as it introduces new EV models. China's role, frankly

0:17:38.080 --> 0:17:40.960
<v Speaker 1>is is a big role in big volume for US

0:17:41.000 --> 0:17:44.040
<v Speaker 1>and all of our brands. And as the landscape changes

0:17:44.200 --> 0:17:47.240
<v Speaker 1>really rapidly to evs in China, you know we're ready.

0:17:47.520 --> 0:17:50.000
<v Speaker 1>We've got great j V partners we do on the

0:17:50.040 --> 0:17:53.360
<v Speaker 1>brands in China, and so we've got you know, good

0:17:54.000 --> 0:17:57.040
<v Speaker 1>brand representation in the design of the vehicle. And then

0:17:57.080 --> 0:18:00.320
<v Speaker 1>also we've got the flexibility and something like our ultium

0:18:00.680 --> 0:18:04.040
<v Speaker 1>architecture for batteries and cells that is flexible enough to

0:18:04.080 --> 0:18:08.280
<v Speaker 1>handle the requirements of a prismatic cell like c at

0:18:08.520 --> 0:18:12.280
<v Speaker 1>L makes in China. Is it a challenge because China

0:18:12.400 --> 0:18:14.840
<v Speaker 1>has shown a predilection to sort of intervene in the

0:18:14.880 --> 0:18:18.119
<v Speaker 1>commercial markets. They favor some companies over other companies. Is

0:18:18.119 --> 0:18:20.560
<v Speaker 1>that a risk potentially for GM because you have some

0:18:20.840 --> 0:18:22.879
<v Speaker 1>Chinese native companies I can put that way like a

0:18:22.920 --> 0:18:25.280
<v Speaker 1>B y D. We believe we're in a good position.

0:18:25.840 --> 0:18:27.679
<v Speaker 1>At the end of the day. The world is competitive,

0:18:27.920 --> 0:18:30.360
<v Speaker 1>right and and the world of electric vehicles is only

0:18:30.359 --> 0:18:32.600
<v Speaker 1>going to get more competitive. It doesn't matter where you're

0:18:32.640 --> 0:18:35.480
<v Speaker 1>operating in. So we need to focus on the quality

0:18:35.760 --> 0:18:39.119
<v Speaker 1>and the customer offerings that we have UM and regardless

0:18:39.160 --> 0:18:41.440
<v Speaker 1>of which market we might be going to, there's one

0:18:41.480 --> 0:18:44.160
<v Speaker 1>thing everyone agrees on when it comes to selling vehicles

0:18:44.160 --> 0:18:49.000
<v Speaker 1>in China. The future is extremely difficult to project. China

0:18:49.040 --> 0:18:52.600
<v Speaker 1>has been interesting because you know, they had they had

0:18:52.600 --> 0:18:57.320
<v Speaker 1>a goal for that's basically already achieved this year in

0:18:57.400 --> 0:19:02.160
<v Speaker 1>terms of electric penetration. They share did incentives from being

0:19:02.240 --> 0:19:06.040
<v Speaker 1>a consumer based incentive to being a stick on the

0:19:06.080 --> 0:19:11.000
<v Speaker 1>industry with trading and such UM that's greatly favored the

0:19:11.080 --> 0:19:15.400
<v Speaker 1>startups and it's been harder for the traditional automakers, both

0:19:15.480 --> 0:19:20.200
<v Speaker 1>domestic and the Western automakers are foreign automakers, they're um

0:19:20.240 --> 0:19:24.280
<v Speaker 1>in terms of the subsidy and the stick of carrot

0:19:24.760 --> 0:19:29.280
<v Speaker 1>regime on electric vehicles. So it very much depends quite

0:19:29.280 --> 0:19:32.919
<v Speaker 1>a bit on the regulatory environment going forward in China

0:19:33.280 --> 0:19:37.439
<v Speaker 1>as to what China looks like in Paul Jacobson tends

0:19:37.480 --> 0:19:40.040
<v Speaker 1>to view the future with a healthy blend of optimism

0:19:40.119 --> 0:19:43.240
<v Speaker 1>and pragmatism. I asked him to look ahead at some

0:19:43.520 --> 0:19:47.760
<v Speaker 1>big picture issues. What over the next ten years excites

0:19:47.800 --> 0:19:50.440
<v Speaker 1>you the most about opportunities for general motors. I think

0:19:50.480 --> 0:19:52.679
<v Speaker 1>the most exciting thing over the next ten years is

0:19:53.119 --> 0:19:55.840
<v Speaker 1>we don't know about all the opportunities to generate revenue

0:19:55.840 --> 0:19:58.800
<v Speaker 1>and serve the customers. So I'm really excited about that. Okay,

0:19:58.840 --> 0:20:00.840
<v Speaker 1>one of the next ten years makes you most nervous.

0:20:00.880 --> 0:20:02.199
<v Speaker 1>I'm not sure if it keeps you up at night,

0:20:02.240 --> 0:20:04.639
<v Speaker 1>but heads in that direction. Yeah. I think the thing

0:20:04.680 --> 0:20:06.359
<v Speaker 1>that keeps me up at night over the next ten

0:20:06.440 --> 0:20:08.760
<v Speaker 1>years is just thinking about the macro landscape. The world

0:20:08.840 --> 0:20:11.959
<v Speaker 1>is just changing so rapidly. We have a lot of

0:20:12.240 --> 0:20:15.239
<v Speaker 1>competitors coming at us UH, and you know we're going

0:20:15.280 --> 0:20:17.760
<v Speaker 1>to meet those challenges. But we don't know what the

0:20:17.760 --> 0:20:19.639
<v Speaker 1>world's gonna throw at us, and we've got to make

0:20:19.680 --> 0:20:22.840
<v Speaker 1>sure that we are very nimble. We've talked a lot

0:20:22.880 --> 0:20:25.320
<v Speaker 1>about the changes coming for general motors. As you look

0:20:25.359 --> 0:20:28.680
<v Speaker 1>at your job as CFO, how will that job have

0:20:28.760 --> 0:20:31.119
<v Speaker 1>to change because of those changes? In the move to

0:20:31.119 --> 0:20:33.400
<v Speaker 1>evis Well, I think as as you think about any

0:20:33.480 --> 0:20:35.800
<v Speaker 1>CFO um not just the move to e VS, but

0:20:35.880 --> 0:20:38.440
<v Speaker 1>just to move to technology and the changing consider we've

0:20:38.440 --> 0:20:40.439
<v Speaker 1>got to be nimble, we've got to be quick, and

0:20:40.480 --> 0:20:42.400
<v Speaker 1>we've got to make sure that we're operating in as

0:20:42.400 --> 0:20:44.520
<v Speaker 1>close to real time as we can. We don't have

0:20:44.560 --> 0:20:46.720
<v Speaker 1>time to look back over what happened last year or

0:20:46.800 --> 0:20:49.880
<v Speaker 1>last quarter. It's what happened last week, what happened yesterday?

0:20:49.960 --> 0:20:52.240
<v Speaker 1>How is the business performing? And how do we get

0:20:52.280 --> 0:20:55.480
<v Speaker 1>real time information to the business leaders. Over the time

0:20:55.480 --> 0:20:58.240
<v Speaker 1>that you've been a CFO, what has changed the most

0:20:58.240 --> 0:21:00.840
<v Speaker 1>for you? What skills have you had to develop? Well?

0:21:00.880 --> 0:21:03.800
<v Speaker 1>I think you know as as as all CFOs experience

0:21:03.880 --> 0:21:06.800
<v Speaker 1>you get, you get much much more ingrained into the

0:21:06.800 --> 0:21:09.560
<v Speaker 1>strategic side of the business. So today's CFO has to

0:21:09.600 --> 0:21:11.879
<v Speaker 1>be much much more than a bookkeeper has to be

0:21:11.920 --> 0:21:14.720
<v Speaker 1>a strategic business partner at the table, helping to see

0:21:14.720 --> 0:21:17.720
<v Speaker 1>around corners and helping to prepare the organization for what

0:21:17.800 --> 0:21:20.880
<v Speaker 1>could happen if somebody took the job of CFO as

0:21:20.880 --> 0:21:24.359
<v Speaker 1>some company today, what would you advise them? Um? Number

0:21:24.359 --> 0:21:28.000
<v Speaker 1>one is listen right? I think too often CFOs are

0:21:28.080 --> 0:21:29.800
<v Speaker 1>are there and their viewed as the people are there

0:21:29.840 --> 0:21:32.680
<v Speaker 1>to say no. Right. I like to challenge our team

0:21:32.720 --> 0:21:34.880
<v Speaker 1>to how can we find a creative way to say yes?

0:21:35.080 --> 0:21:37.320
<v Speaker 1>How can we find solutions and ways to make things

0:21:37.359 --> 0:21:40.800
<v Speaker 1>more efficient not just forego them, uh in lieu of

0:21:40.840 --> 0:21:43.359
<v Speaker 1>something else. Um. That can sometimes be hard for us.

0:21:43.400 --> 0:21:47.240
<v Speaker 1>We're all naturally skeptics. That's what tends to attract people

0:21:47.280 --> 0:21:50.080
<v Speaker 1>into the finance business. So how are you skeptical? With

0:21:50.119 --> 0:21:52.479
<v Speaker 1>a good vent towards it to helping people accomplish their

0:21:52.480 --> 0:21:59.560
<v Speaker 1>goal finding creative ways to say yes. If Paul Jacobson

0:21:59.640 --> 0:22:02.440
<v Speaker 1>and his team can do that, GM will be well

0:22:02.520 --> 0:22:06.119
<v Speaker 1>on the way to delivering on its grand vision of transformation.

0:22:08.160 --> 0:22:11.360
<v Speaker 1>I'm David Weston. This is Bloomberg