Mary Barra Says EVs Remain GM’s ‘North Star’ Despite 2025 Headwinds

General Motors CEO Mary Barra said electric vehicles remain central to the company’s long-term strategy, even as shifting regulations and incentives disrupted EV demand in the short term. Speaking in Detroit this week, Barra acknowledged recent headwinds but reiterated that GM has not backed away from its commitment to electrification.

Barra says EV strategy remains intact despite 2025 setbacks

Barra made the comments during an Automotive Press Association fireside chat at GM’s new Hudson’s Detroit headquarters, according to the Detroit Free Press. She pointed to the loss of government incentives as one of the most significant disruptions in 2025, particularly the expiration of the federal EV tax credit late in the year.

GM has disclosed it expects to take an additional $6 billion charge related to changes in its EV production plans. Despite that, Barra said she has no regrets about the automaker’s earlier investments, noting the decisions were justified based on the information available at the time. She also emphasized that EV buyers tend to be repeat customers, reinforcing GM’s belief that long-term adoption remains on track even if near-term progress slows, according to GM Authority.

The numbers reflect that split picture. GM’s EV sales fell 43% year over year in the fourth quarter of 2025 to 25,219 units, a drop largely attributed to the tax credit’s expiration. For the full year, however, GM sold 169,887 EVs in the U.S., up 48% from 2024, making it the second-largest EV seller in the country behind Tesla. Still, the GM CEO noted that electric vehicles remain the company’s “north star.”

Tariffs, cost controls, and focus on software ahead

Barra said regulatory changes in 2025 ultimately proved more disruptive than tariffs. When tariff risks first emerged in 2024, GM moved quickly with what she described as “no-regret moves” to limit exposure. In May 2025, GM estimated tariffs on imported vehicles and parts could cost about $5 billion, but roughly 30% of that impact was offset through internal measures.

Those steps included increasing U.S.-based vehicle and component production, executing about $2 billion in cost reductions, and maintaining strict pricing discipline. Barra said those actions helped stabilize operations amid an increasingly volatile policy environment.

Looking forward, GM plans to prioritize software development and advanced driver-assistance systems, including new eyes-free technology targeted for 2028. At the same time, the company will continue evaluating hybrids and future product updates across its lineup, balancing near-term flexibility with its longer-term EV roadmap.

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