GM CEO Says Cars Are Still Significant, Will Stick With Them

Rumors have suggested Chevrolet could be preparing to drop several different models including the Impala and Sonic but GM CEO Mary Barra used this morning’s first-quarter conference call to tell investors the company is sticking with cars.

As WardsAuto notes, Barra said “We launched very efficient architectures in the midsize and compact [segments] proving to be good platforms going forward with fairly minor changes.” She went on to say both segments are still “significant” and the company views cars as an opportunity even though their popularity is declining.

Part of the reason that Barra is optimistic about cars is that the company only needs to “deploy little to no capital going forward” to remain in the compact and midsize segments. This cost-effective approach is part of the automaker’s effort to “play very efficiently” in a declining segment.

While car sales are falling in the United States, millions are still sold every year. In 2017, consumers bought more than 6.1 million of them.

Barra didn’t go into specifics but General Motors has a number of new and updated cars on the horizon. This month alone, Chevrolet unveiled facelifted versions of the Cruze, Camaro, Malibu and Spark. Cadillac is also working on the new CT5 and it will eventually be joined by a compact sedan to battle models such as the Audi A3 and Mercedes CLA.

Part of the reason the automaker is sticking with cars is because of demand overseas. As Barra noted, “China still has a significant car market.” The executive also mentioned strong demand for cars in South America.

Ford’s decision to abandon sedans in North America could turn out to be a blessing for GM as it will no longer have to compete with its crosstown rival. This has the potential to drive former Ford customers into Chevrolet showrooms.