In our inaugural report published in January 2012, GM Vice President for Sustainability and Global Regulatory Affairs Mike Robinson discussed our position on a wide range of issues facing the automotive industry. In this continuing discussion, he provides updates on many of these issues and shares how our sustainability strategy is evolving within the company.
Q:In GM's inaugural Sustainability Report published in early 2012, you outlined a sustainability strategy that was aligned with the Company's business model. Which parts of this model are working best today?
A:Sustainability is well-integrated into our manufacturing process and part of the cultural DNA in our plants. There are a lot of well-earned bragging points for this area of our business when it comes to sustainability. I'm also pleased with the progress we've made in a relatively short period of time in the supply chain area. There's a lot of work to do, but our supply chain organization is really taking ownership of sustainability issues, and I expect to see more progress in the near term.
Q:What parts of the model are more difficult to execute?
A:When you look at how much progress our plants have made in areas such as waste reduction, the employee engagement factor really jumps out as a contributor. We have to make sure that we're motivating employees across the entire organization, and the best way to do that is to invite them to contribute their ideas. Our best solutions come from people who are actually working on practical issues as opposed to theoretical concepts that we apply.
Q:How do you engage a workforce of more than 200,000 people?
A:One of the preliminary insights to come out of our Workplace of Choice employee surveys is that people want to feel like they're making a difference and that they're being challenged. We've got one of the largest global operations in the world with lots of different cultures and geographies, but one of the common threads is that people want to feel good about where they work. They want to feel like they're working for a company that's contributing to society. That's universal. Sustainability gives everybody an opportunity to contribute and to get engaged in solving big, complex problems.
Q:What's the biggest challenge to employee engagement?
A:We have to continually communicate and create opportunities for people to contribute, and that's often hard when you're dealing with external challenges. A good example is Europe, where a depressed economy and industry overcapacity are creating a very difficult business environment for us and for most of our competitors. We must be sure that we're making responsible business decisions and making it possible for people to contribute regardless of the business environment. Great companies don't take their eye off the ball; they remain vigilant about issues that are of the greatest importance long term.
Q:When you think about those long-term issues, what are the priorities?
A:The most significant long-term issues for GM and the industry are to increase fuel economy and reduce CO2 as far across the spectrum as possible; deal with urban congestion in a responsible way; integrate safety systems into vehicles while also reducing vehicle mass; and find alternatives for rare earth materials so that we don't substitute one resource dependency for another.
Q:Does GM have a position on greenhouse gas and climate change?
A:There are all kinds of politics around the issue of climate change, but from our standpoint it makes sense for us to focus on solutions that reduce CO2 in our plants and in our vehicles. These solutions have business benefits. Energy reduction translates into lower energy costs for us. More efficient, lower-emission vehicles translate into better fuel economy. Better fuel economy translates into greater customer value. We want to be part of the answer that society has to come up with to reduce the amount of fossil fuel we use and ensure our energy security moving forward.
Q:What is GM doing to reduce the automotive industry's reliance on petroleum today?
A:As you will read in this report, we are working on a variety of solutions. But at the end of the day, customers will decide what type of technology they want and what they are willing to pay. We want to give vehicle owners good, intelligent choices. Their purchasing decisions, based on their own needs and lifestyles, will largely determine our future direction.
Q:Vehicles with advanced technologies, such as hybrids and electric vehicles, have carried a premium price. What are you doing to ensure that GM offers affordable and sustainable choices?
A:Our approach has been to provide people with multiple options. In the case of trucks, for example, hybrid systems will be available to truck owners so that they can do the value analysis on what they need in a truck and how much the technology is worth to them. Hybrid technology may not work for every vehicle, but it does make sense in many cases. We will learn a lot through the new Buick LaCrosse, which is now being sold with two powertrains, a six-cylinder and a four-cylinder engine with eAssist technology. Again, the answers are evolving and largely being shaped by market demand.

Speaking of market demand, production has been suspended temporarily several times during the past year on the Volt. What does the Volt's sales performance mean for the future of electric vehicles?
A:We are absolutely committed to the Volt and its technology because it's a proven winner in the marketplace. The reviews from those that matter most — Volt owners — have been exceptional. People love this car. It's the leading vehicle of its type in the market. But, it takes time for any new technology to gain momentum and become a significant player. So we're going to be patient and we're going to be fiscally responsible. As we would with any model, we're going to align production with market demand as opposed to building excess inventory. That's just smart business.
Q:Many advanced technologies rely on materials that are scarce and/or have limited accessibility. How is GM managing this situation?
A:Our R&D operation is a leader in green-tech patents and is always exploring alternatives to various technologies. We are sensitive to concerns around rare earth elements and the supply of lithium. The bottom line is that we do not want to replace our reliance on petroleum with reliance on another limited resource. The new motor in the eAssist technology is a great example of how we've been able to design out rare earth metals.
Q:New SEC regulations are requiring manufacturers to publicly disclose issues related to the use of certain minerals that originate in areas of Africa engaged in conflict. What is GM's position on this regulation and the use of these materials?
A:We share the concern about sourcing materials from this region and will comply with the rules. We've pulled together a cross-functional team that has a rigorous process in place to track these materials in a transparent manner. The process, however, is a challenging one given that these minerals are commodities. I've compared tracking tin for an automotive company to tracking sugar or salt for a restaurant owner. It requires a lot of work, but it's important and we're prepared to do it.
Q:Also on the regulatory environment, the U.S. CAFE regulations were finalized recently. What is your reaction?
A:The final rule for the 2017 to 2025 time period is consistent with the discussions that we participated in last year. We're fully committed to offering vehicles that meet these requirements and that consumers will want to purchase. Our role will continue to be as a partner in the process by keeping the regulatory agencies updated on what's happening in the marketplace so that they can make informed decisions about whether or not any mid-course adjustments need to be made. Finally, we continue to appreciate that a single, national program to address fuel economy requirements is in place.
Q:Would you like to see this type of regulatory harmonization happen on a global basis?
A:Absolutely, but it's a daunting challenge. We continue to work with sovereign governments to devise a consistent global approach to fuel economy requirements that also recognizes their unique market resources and constraints. It's not an easy task, but one that is important for us to pursue. From fuel economy to safety standards, harmonization supports our own efforts to increase our use of global automotive architecture in order to streamline the business and lower our cost structure. All of this ultimately benefits the customer with better product value, which is our most important goal.