“We have to be better than Chinese cars.” General Motors (GM) Chairman Mark Reuss's concise message in a conversation with InsideEVs illustrates how the American automaker chooses to confront competitive pressure: not by copying, but by excelling through innovation. The focus is on lowering battery costs to expand the electric vehicle portfolio, while maintaining the strength of its internal combustion engine models, generating cash flow for research and development.
Innovate instead of copy: GM's top-down direction.
Since 2019, Mark Reuss, along with CEO Mary Barra, has led GM amidst fierce competition in the automotive industry, particularly in the electric vehicle segment. Reuss emphasized that the company is not seeking to copy Asian technology but rather to surpass it through a better approach. According to him, simply repeating existing solutions will not be enough to create a sustainable competitive advantage.
Affordable batteries: a key driver for expanding the electric vehicle portfolio.
GM continues to heavily invest in R&D with a specific focus: cheaper batteries. Reuss stated that this is a key direction for the company to expand its electric vehicle portfolio amidst increasingly fierce competition. This battery project uses the same technology that Ford is also researching. As battery costs decrease, electric vehicles can reach more customers and strengthen GM's position.
Don't abandon ICE: a parallel strategy to nurture R&D.
Despite prioritizing electrification, GM is not abandoning internal combustion engines. Reuss believes the company is "very fortunate" to have a portfolio encompassing both electric and gasoline/diesel vehicles. The business performance of internal combustion engine vehicles continues to play a crucial role, helping to generate resources for reinvestment in technology and R&D, serving the goal of achieving success in both areas.
The pressure of "Chinese speed" and product lifecycles.
According to Reuss, the key lesson to learn from China is speed. Manufacturers in this market launch new models, mid-cycle upgrades, and next-generation devices significantly faster than in Europe, the US, South Korea, and Japan. The generational launch cycle in traditional markets is typically 6–8 years, with major updates every 3–4 years; in China, this time is often halved.
The high speed allows Chinese car manufacturers to respond to user needs more quickly and update technology in a timely manner, making it easy for established competitors to fall behind in terms of technological understanding. Reuss also notes that this speed partly stems from manufacturers "thoroughly evaluating each other and then copying," creating a very rapid development cycle, but this is not necessarily good for the market.
| Region/Brand | The development cycle is described in the source. |
|---|---|
| Europe/America/Korea/Japan | New generation: 6–8 years; major upgrade: 3–4 years |
| China | About half the time compared to above |
| Audi (next-generation TT) | The target launch date is 30 months after project approval. |
| BMW (Neue Klasse) | We are committed to releasing 40 new and upgraded models in the next two years. |
The global acceleration wave: how have competitors responded?
Not just GM, but other major European brands are also accelerating their growth trajectory. Last month, Audi announced a strategy aiming to bring the next-generation TT to market just 30 months after approval. Shortly after, BMW declared that even Chinese manufacturers would struggle to match the pace of development of the Neue Klasse line, and committed to launching 40 new models and upgrades within two years.
Implications for the market and users
Reuss predicts electric vehicles will become more common and affordable as costs decrease. If GM's low-cost battery strategy goes as planned, consumers could see a rapidly expanding electric vehicle portfolio at more competitive prices. Meanwhile, maintaining internal combustion engine vehicles ensures resources for reinvesting in technology, mitigating risks to the electrification roadmap.
Conclusion: Overcome obstacles at your own pace.
Mark Reuss's message is clear: GM chooses innovation over copying, betting on low-cost batteries and a fast-growing development model, coupled with internal combustion engines to fuel R&D. In a race where "Chinese speed" is setting new standards, GM's success will depend on translating strategic priorities into rapid market deployment.
Source: https://baonghean.vn/gm-truc-toc-do-trung-quoc-mark-reuss-chon-doi-moi-10308757.html
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