How is GM attempting to mend its damaged relationship with Washington?

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General Motors is undertaking a multi-faceted strategy to mend its relationship with Washington following its job cut announcement.

General Motors is actively attempting to improve its standing with political figures in Washington D.C. by engaging in direct communication, lobbying efforts, and strategic hires. These actions are aimed at mitigating the negative public relations fallout from its decision to cut nearly 15,000 jobs in North America and restructure under the code name “Turbo.” The company's leadership, particularly CEO Mary Barra, is emphasizing the necessity of these strategic decisions for the company's long-term future and financial health, while also seeking regulatory support for its future technologies.
Direct Engagement with White House and Officials

Mary Barra has prioritized building and maintaining relationships with the Trump administration and key officials. This has included attending social events, such as a dinner at Ivanka Trump's home, and holding direct discussions with President Donald Trump himself on several occasions. Furthermore, Barra has engaged with high-ranking officials like Transportation Secretary Elaine Chao, inviting her to Michigan to experience a self-driving car and attending a lunch meeting at the White House with Chao and other officials in April 2017. These efforts underscore a deliberate strategy to keep lines of communication open at the highest levels of government.
Lobbying for Future Technologies and Regulatory Support

Beyond personal relationships, GM is actively lobbying Congress to advocate for policies that support its future technological advancements. Specifically, the automaker is seeking an expansion of the US$7,500 tax credits for electric vehicles, a move crucial for increasing consumer adoption of its EV offerings. Additionally, GM requires regulatory assistance to enable the deployment of self-driving cars on public roads, highlighting its need for government cooperation in shaping the future of automotive technology.
Strategic Hires and Explaining Cuts to Lawmakers

In an effort to better navigate the political landscape, GM hired Everett Eissenstat, a former senior aide to President Trump who focused on trade policy, to lead its Washington D.C. office in August. This move signals an intent to have experienced political representation managing its affairs in the capital. Concurrently, Barra has been actively meeting with lawmakers on Capitol Hill, spending two days in December explaining the rationale behind the job cuts and addressing concerns. These meetings are intended to provide transparency and articulate the company's strategic imperatives to elected officials directly impacted by its decisions.
Financial Justification for Restructuring

GM leadership, including President Mark Reuss and CEO Mary Barra, has consistently framed the restructuring as a necessary financial measure to ensure the company's long-term viability. Reuss explained that the company must stop investing in unprofitable areas to offset tariff costs and fund the development of new electric vehicles and battery technology. Barra echoed this sentiment to investors, emphasizing the willingness to make tough, strategic decisions to secure the company's future. This financial narrative is central to their communication efforts, aiming to demonstrate that the workforce reductions are tied to necessary investments in future growth areas like electric and autonomous vehicles.

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How is GM attempting to mend its damaged relationship with Washington?

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