The Future of General Motors, How to Be a Good Manager, and Advice to a High School Senior

EV Strategy

General Motors (GM) is making significant strides in the electric vehicle (EV) market, recently surpassing Ford as the second largest EV seller in the U.S., trailing only Tesla. Scott Galloway highlights GM's strategic decision to gradually enter the EV sector, focusing on developing standardized battery technology, which has allowed them to achieve economies of scale and reduce manufacturing costs 1. This approach has enabled GM to offer competitive pricing, with their cheapest model starting at $35,000, benefiting from a $7,500 tax credit, unlike Ford's $40,000 model that lacks such incentives.

If you can put out a similar product at a lower price, you're going to capture share.

--- Scott Galloway

GM's stock has risen by 45% over the past year, contrasting with declines in competitors like Ford, Honda, and Nissan, indicating a strong market position 1.

   

Layoffs

Despite its success in the EV market, GM faces significant employment challenges, having announced plans to lay off over a thousand employees globally, with Michigan workers being heavily impacted. Scott Galloway notes that these layoffs are part of GM's strategy to "optimize for speed and excellence," though he criticizes the corporate jargon often used to justify such decisions 2. This move comes amid a challenging year for U.S. automakers, with slow growth in EV sales and consumer demand not yet rebounding to pre-pandemic levels.

We're making less money, so we need to fire people.

--- Scott Galloway

Other major car manufacturers like Ford and Stellantis have also faced similar challenges, indicating broader industry struggles 2.