General Motors was once a symbol of American industrial might, but by the early 2010s the company was in crisis. Outdated business models, growing competition and rapid changes in the automotive industry put GM in need of radical change. And the company did just that. As Dr. Nadya Zhexembayeva often emphasizes, GM learned to forget the old and therefore was able to create the new.

Why GM needed a transformation

GM dominated the market for decades by mass-producing gasoline cars, but by the 2010s, demand began to shift. Consumers increasingly favored more fuel-efficient, technologically advanced, and environmentally friendly models, and new players like Tesla challenged the traditional auto giants. GM, like other "old" manufacturers, faced falling sales and shrinking margins.

Tougher environmental regulations in the US, Europe, and China have forced automakers to rethink their strategies. Authorities have introduced CO₂ emission quotas, and some countries have discussed a complete ban on internal combustion engines. GM, which had long relied on large SUVs and pickup trucks, found itself under a double blow: on the one hand, fines for exceeding standards, and on the other hand, the need to catch up with Tesla and other EV market leaders.

Inside GM, bureaucracy reigned, slowing innovation. The corporate structure was saturated with outdated processes, and decisions were slow. This phenomenon, known as "Titanic syndrome"—when "a large company ignores threats because of a belief in its own invulnerability—prevented GM from adapting to new realities.

By 2014, it was clear: without a deep transformation, GM risked repeating the fate of other industrial giants that failed to rebuild in time. The company needed not just modernization but a complete re-inventory of the brand—a revision of the foundations of the business, culture and strategic vision.

Mary Barra's Reinvention Roadmap

When Mary Barra took the helm of GM in 2014, she was faced with the challenge of not just reforming the company but completely rethinking its future. Her strategy was based on four key pillars: electrification, digitalization, global reorientation, and cultural transformation. The result was one of the boldest rebrandings in automotive history.

Electrification and zero-emission targets

GM has set its sights on phasing out internal combustion engines altogether, with the ambitious goal of switching entirely to electric vehicles by 2035. The foundation of this strategy is the Ultium platform, a modular battery architecture that enables the creation of EVs of different classes with high profitability.

Among the key models:

• The GMC Hummer EV is the flagship electric pickup that proved GM can build high-tech and powerful EVs.
• The Chevrolet Equinox EV is an affordable crossover designed to compete with the Tesla Model Y.
• The Cadillac Lyriq is a premium electric car that sets a new standard for the brand's design and technology.

GM plans to produce 30 new EVs by 2026 and ramp up production to 1 million electric vehicles per year.

Investments in autonomy and software

Recognizing that the future lies in connected cars and services, GM has made several strategic moves:

• Founded Cruise, a subsidiary developing autonomous cabs. In 2023, Cruise began commercial transportation in San Francisco.·     
• Turned OnStar's 4G/5G emergency communications service into a digital ecosystem with telematics subscriptions, security and software updates.
• Created the Ultifi platform, a cloud-based operating system that allows for remote car updates and monetization of software (e.g., subscriptions to premium features).

This approach turned GM vehicles into "gadgets on wheels," creating new revenue streams.

GM's exit from global markets

To focus on EVs and high-margin segments, GM phased out operations in regions where it couldn't be a leader:

• Opel and Vauxhall sales (2017)—exit from Europe.
• Discontinuation of Chevrolet sales in Russia (2019) and India (2017).
• Reduction of presence in South America and Southeast Asia.

Instead, the company focused on North America and China, where it saw the greatest potential for electric vehicles and premium brands (Cadillac, Buick).

Culture Reset: Speed, Inclusion, Startup Thinking

Barra understood: technology is nothing without a new corporate culture. To change the corporate culture at GM, she began:

• Break bureaucracy: reducing management levels, Agile methodologies.
• Attract IT talent: recruit engineers from Silicon Valley.
• Develop inclusiveness: Barra, the first female CEO in the auto industry, made diversity a priority.

As a result, GM became more responsive to the market, and its teams began to operate in the spirit of tech startups.

GM’s Reinvention at a Glance

_{Dr. Nadya Zhexembayeva’s Reinvention Lens}

General Motors' reinvention is not just a change of model range or technology. It is a deep revision of the very logic of business, which fits perfectly into the idea of "Reinventing" by Dr. Nadia Zhexembayeva. Her approach requires not only the introduction of innovations but also the rejection of outdated dogmas—and GM has traveled this path to the fullest extent.

According to Zhexembayeva's model, successful re-inventory begins with "unlearning," abandoning entrenched assumptions. For GM, this meant:

• A rejection of "gasoline" thinking. Even brand symbols such as Hummer have become electric vehicles.
• A restructuring of R&D. Engineers who had optimized internal combustion engines for decades switched to software and batteries.
• New decision criteria. For example, closing plants in Australia and Russia to invest in EVs.

As Zhexembayeva notes, "They have changed not only what they sell but also how they think, hire employees, and make decisions."

The company has also redesigned its entire ecosystem. GM did this through:

1. EV chain control: Joint venture with LG Energy Solution to produce batteries in the US. Lithium mining through investments in EnergyX and other startups.
2. Technology alliances: Partnership with Microsoft (cloud computing for autonomous systems). Google integration (Android Automotive in new models).
3. Vertical integration: In-house production of critical components (e.g., electric motors). Purchase of the startup Silentium to reduce noise in the EV cabin.

This has transformed GM from an automaker into a mobility architect, controlling the chain from raw materials to digital services. However, Zhexembayeva emphasizes that without a change in culture, reinvention remains cosmetic. In GM, it looked like this:

• The leadership of Mary Barra (a former engineering intern) became a symbol of meritocracy.
• Agile methodologies replaced tiered approvals—for example, the Ultium team worked in startup mode.
• Emphasis on diversity: 40% of leadership positions were held by women (vs. 22% in 2014).

In this way, GM showed that reinventory is not a restyling but a reboot of the company's DNA.

5 Reinvention Lessons from GM for Business Leaders

The Transformation of General Motors is more than just an automotive success story. It is a ready-made guide to surviving in an era of disruption for any traditional business, from industry to retail. Here are five key principles that GM has proven in practice.

1. Reinvention requires sacrifice. Mary Barra was not afraid to shut down entire areas, leaving Russia, selling Opel, and ceasing production of legendary models like the Chevrolet Impala. That's how GM freed up $6 billion to invest in EVs. This is a lesson for leaders: transformation begins with courageous rejection of the past, even if it is still profitable.

2. Cultural change drives business model change. In 2014, GM was a classic bureaucracy with 16 levels of decision approval. Today, Ultium engineers make key technical decisions in weeks, not months.

3. Software and ecosystems are the new value levers. GM used to make money on car sales; now it makes money on OnStar subscriptions and software updates. By 2030, such services should generate $25 billion in annual revenue.

4. Sustainability is not a cost but a source of innovation. Ban gasoline-powered Cadillacs by 2035, renewable energy plants, and battery recycling—GM has turned the green agenda into a competitive advantage. For example, the Ultium platform was originally designed for recycling (batteries → energy storage).

5. Reinvention needs leadership commitment from the top. When GM's board demanded cuts to Cruise in 2020, Barra insisted on increasing funding to $2 billion a year. Her principle: "If you wait until all the risks are gone, you're too late." It is this willingness to put reputations on the line that distinguishes transformation from cosmetic change. However, Barra wasn't afraid to change its mind, and GM is pulling the plug on funding the development of Cruise's unmanned robot cabs. The decision was made because, given the costs, it is impossible to build a profitable robotaxi business.‍

The Road Ahead for Reinventors

Technology is accelerating the "shelf life" of business models. Whereas automakers used to be able to sell the same platforms for decades, today Tesla updates car functionality remotely, and GM has had to learn to do the same.

The climate transition has become an economic reality. EU bans on internal combustion engines, carbon taxes, and investor demands are not green PR, but the new rules of the game. GM, which bet on EVs in 2017, is now ahead of Toyota and VW in the race for next-generation customers.

Digital transformation is no longer about IT departments. When data and software become major assets (like Cruise or Ultifi), a company must retool its culture, from HR policies to KPIs for top managers.

And the transformation doesn't end with the launch of EVs or digital services. As Mary Barra said, "We don't call it 'transformation' anymore—it's our day-to-day reality."