Marcio Lucon, GM
Inside the transformation putting logistics at the heart of GM’s growth strategy
By introducing logistics and packaging considerations earlier in development and investment decisions, GM is seeing better results and mitigating risk. Executive director of global logistics and containers, Marcio Lucon, explains how a resilient network, smarter investment and a seat at the strategy table are powering growth and keeping the company’s EV ambitions on track.
Change in the automotive industry rarely waits for the perfect moment, and Marcio Lucon, General Motor’s (GM’s) executive director of global logistics and containers, has spent the past year making sure the company’s logistics is ready for whatever comes next. His focus, as he describes it, rests on three pillars: “Operations under control, improving our core business and designing our vision for where we want the business to be in the future.”
Since taking over GM’s top logistics role in September 2024, Lucon and his team have seen these principles put to the test in a rapidly changing global environment. The challenges in the supply chain have made Lucon’s aspirations even more relevant, with the opportunity to help the carmaker succeed at a critical time.
Last year, starting the new role, Lucon told Automotive Logistics that one of his key objectives was to make sure that logistics was part of the decision-making process from the beginning of any project. Earlier roles had helped him to appreciate the cross-functional significance that logistics, packaging and distribution can play in engineering, cost, manufacturing and sales, including leading purchasing roles in Asia Pacific, and GM’s Global Purchasing and Supply Chain in South America.
Today, the influence of logistics and supply chain are imperative for GM as it adapts quickly to new market conditions whilst also shaping its production and supply footprint for the long-term. This year, for example, the carmaker has seen strong sales growth in a challenging market, including an explosive rise in EV sales, with logistics delivery and cost performance strong. The carmaker has also announced a $4 billion investment in its US plants over the next two years, plans in which logistics is “playing a very significant role”, says Lucon.
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“Everything that we do in the company requires logistics to be part of the decision,” he says.
His team has turned lessons from recent crises into a more resilient network, from managing material and logistics capacity shortages, to keeping select operations lean and just-in-time, whilst being ready to invest in the right capacity and services to take on risks where it makes sense. In this conversation with Automotive Logistics, ahead of speaking at the Automotive Logistics & Supply Chain Global conference in September 2025, he explains how.
Logistics takes a seat at the strategy table
Logistics has traditionally operated more as a service function at most automotive manufacturers, tasked with executing delivery plans that were shaped elsewhere within the organisation. But in recent years, GM has made strong efforts to flip that script, embedding logistics insight at the front-end of business planning and to account for total enterprise impacts when assessing decisions. For Lucon and his team, this evolution has been accelerated by a need for extreme flexibility.
“The difference now is that things change faster,” Lucon points out, from shortening development cycles to changing market preferences and regulations. “We need to be involved earlier in decisions to make sure we build solutions that can quickly adapt to the business environment as required.”
In the past, logistics models for large automotive companies often remained relatively static throughout a vehicle’s lifecycle, with network optimisations made only a few times per year. But recent global developments, such as Covid-era disruptions, semiconductor shortages, railcar scarcity and port congestion, have shattered the assumption of stability. Logistics systems now demand adaptation midstream as conditions shift. As Lucon explains, “today’s volatility requires that we are engaged much earlier, right at the beginning of programmes,” embedding logistics into product design and planning from the outset. This early engagement ensures that manufacturing and product development teams account for requirements such as packaging, parts handling and distribution infrastructure upfront, avoiding costly redesigns later.
Lucon’s role is built to drive cross-functional collaboration, consolidating inbound logistics, outbound vehicle logistics, service parts logistics, logistics purchasing and packaging engineering, and deployment and operations, under one leadership team. That integration allows Lucon's logistics and containers team to contribute to strategic decisions on plant location, supplier selection and product design.
“We have put ourselves into the early discussion,” says Lucon. “Everything that [is] being discussed in the company in terms of future strategies… we are more deeply engaged in to make sure we are building the right model for the future.”
One tangible example is packaging (covered in detail later). Centralising packaging in Lucon’s team ensures that packaging and handling are part of vehicle development from the beginning.
Jump to packaging as a strategic lever
Stabilising operations and optimising performance
Elevating logistics and packaging to a strategic role depends on operational stability. In North America, finished vehicle distribution challenges in 2023 were significant enough to be ranked by GM’s leadership as a “top five global issue” for the company.
When Lucon stepped into his role in 2024, his priority was to continue to restore flow and build resilience, creating a logistics network that can absorb shocks. “We are making sure we have no bottlenecks in the business,” he says. A review of logistics data revealed opportunities on specific routes and transfer points where capacity lagged demand. “The whole business was okay, but in some areas… we had bottlenecks,” Lucon explains.
His team conducted targeted fixes: adding railcars and haul-away trucks in high-pressure lanes and adjusting load plans to eliminate mid-route delays. The aim is to ensure “nothing blocks us,” he says of the goal for outbound vehicle movement.
On the inbound side, performance gains have been steady and measurable. “We are bringing material in as efficiently as possible… and we have been decreasing costs every month,” Lucon notes. Measures such as improving trailer and container cube utilisation, deploying higher-density reusable packaging and reducing the number of handling points have lowered costs even as production volumes increase.
A new governance process underpins these results. “We could predict everything,” he says, describing a system that flags risks early in the quarter, allowing teams to act before problems escalate. “We don’t wait and then suffer later… We take action right away.”
Behind this approach is closer communications with plants and suppliers, more granular monitoring and a more proactive approach to logistics management.
“Quarter-end for any company is always tough,” Lucon admits, but by the second quarter of this year, GM’s logistics operations reported no major bottlenecks – no rail backups, no yard overflows and record vehicle output with on-time deliveries. “For everything we could predict, we put a different governance in place… and we’re okay across all those capacities,” he says.
The benefits here are strategic as well as operational. With stable flows, GM’s leadership can focus on long-term improvements rather than constant crisis response.
Balancing investment and risk in logistics
For Lucon, achieving logistics excellence often comes down to a central dilemma: how much to invest in efficiency and resilience up front versus how much risk to accept to conserve capital. “You always need to strike the right balance between capital investment and the efficiency we get in transportation,” says Lucon. “If you don’t invest enough, the business becomes inefficient. But if you invest too much, you don’t get a payback.”
Examples include building additional storage space or logistics centres near plants, engineering robust returnable packaging, and keeping supply lines geographically close to factories. All require capital, and as Lucon points out, “We don’t have free money,” so each decision must deliver measurable returns.
In his view, companies tend to skew to one extreme. “Sometimes [companies] go to one extreme or the other… some prioritise lean processes, while others focus on capital savings,” he observes. GM aims for a hybrid approach, investing selectively to de-risk the most vulnerable parts of the network without eroding returns.
One factor guiding that balance is the level of visibility and control GM maintains over each part of its chain. The company’s logistics network spans the globe, with thousands of moving parts (both literally and figuratively), and a multitude of influences affecting daily operations. Lucon sees opportunities for strategic investment in logistics that could deliver significant gains for GM. “You could end up saving money in areas where you have the most risk,” Lucon says.
GM’s new approach is to “right-size” investments beyond the factory gates – adding buffer inventory, alternative transport modes and reserving extra capacity – to ensure external risks are mitigated while maintaining the right level of spending inside the plant. “This balance is very important,” he stresses, and requires close coordination with the wider organisation to make “the right decisions for the future.”
This philosophy echoes GM’s broader supply chain strategy, outlined last year at Automotive Logistics & Supply Chain Global 2024 by Jeffrey Morrison, GM’s senior vice president of global purchasing and supply chain, who described the approach as knowing “where to be lean and where to be robust.”
The benefits of this balanced investment are evident in both resilience and market performance, which has included growth in the first half of 2025 of 7% in the US year-on-year and a rise in market share by 0.7%. “The proof that this is working… is GM’s performance in the market,” Lucon remarks. “If anyone is finding a way to operate in this current environment, I think we are a good example.”
Powering the EV revolution through logistics
EVs introduce new variables to both inbound and outbound flows: heavier and bulkier vehicles that alter load configurations, unique battery handling requirements and dedicated supply chains for battery packs and electrical components. EV demand and volume have also proved highly complex to predict, including ongoing shifts in policy and incentives.
However, the EV market and supply chain have been a major success story for GM, including double-digit sales growth in the first half of 2025, and 115% increase year-on-year in July to 19,000 units, driven by the launch of the Chevrolet Equinox EV, among other models.
GM has been evolving its vehicle and service parts distribution models accordingly. “We had to redesign our distribution process,” Lucon says, “and we have been adapting as more [EVs] launch”. Routes and modes have been re-evaluated, with rail taking on more long-haul moves to consolidate volumes, and truck transport optimised for regional deliveries.
Supporting infrastructure has also changed. One priority is ensuring charging capability in yards and distribution centres to maintain flexibility if vehicles remain in storage longer than planned, including the use of mobile charging services. “EVs require a different approach to manage the charging infrastructure,” Lucon explains.
In recent years, GM had also introduced dedicated EV fulfilment centres in key regions, which stored a wider variety of EV models and configurations, with the aim to streamline delivery to dealers. Now, the carmaker is further optimising this model, according to Lucon, including exploring opportunities to expand the network and integrate it with existing vehicle yards and facilities across the vehicle logistics network, as it seeks to improve coverage while managing costs and space.
Recognising the unique expertise needed for EV logistics, the company appointed Amy Paulsen in September 2024, a logistics expert with experience at EV companies like Tesla and Rivian, to lead its global finished vehicle logistics. Her mandate revolves around modernising IT systems, strengthening charging infrastructure at plants, ports and distribution centres, and applying a “startup” mindset to legacy operations. At this year’s Finished Vehicle Logistics North America conference, hosted by Automotive Logistics, Paulsen highlighted how charging constraints and infrastructure gaps are critical links in the supply chain that OEMs must address in real time.
From data to logistics foresight
As GM’s logistics network expands in complexity the company is increasing its investment in digital tools to improve foresight and visibility. The objective is a supply chain that can predict disruptions before they strike, rebalance resources dynamically and give decision-makers a clear, real-time view from end to end.
“You can imagine the size of the logistics and the amount of data… we’re trying to take that to the next level,” Lucon says, describing efforts to make the information GM already collects more actionable. GM’s approach combines advanced analytics with practical application.
One initiative that Lucon reveals is ongoing collaboration with GM’s LLP partners to continuously enhance the capability of its transportation management systems (TMS) to drive insights back into the business. While the team is in the early stage of implementing and scaling the tools, Lucon notes, “the aim is to have far greater visibility and a single control tower view” capable of flagging problems in transit and enabling faster corrective action.
Internally, GM is training staff to use digital tools to build rapid-response models. “We are enabling the team to operate [using] AI and Power BI tools, to make sure that we use all the data we have available to us in the right way,” he explains. “These models can be used for future business planning as well as for any quick reactions that we need to take.” These capabilities support not only quick reactions but also strategic planning.
Packaging as a strategic lever
Among the most significant shifts at GM’s logistics and containers has been an important enhancement in its packaging strategy. Packaging can be an overlooked driver of efficiency or a hidden source of waste: poor design reduces container utilisation, increases damage risk and adds cost, whilst well-engineered solutions improve density, protect quality and streamline handling.
GM has consolidated its packaging engineering work. The change embeds packaging into early programme milestones. “Everything that involves packaging has to get logistics’ approval,” Lucon says. This means packaging engineers can influence part dimensions, materials and configurations before production begins, making it easier to maximise container loads and reduce handling steps. “We’re involved early in programmes and part design to make sure we make balanced decisions across the company,” he adds.
The benefits are already measurable. Centralisation has increased container utilisation, reduced damage rates and uncovered opportunities for shared containers between programmes. In some cases, early intervention has prompted minor component redesigns that eliminated repacking, freed warehouse space and lowered transport costs. “This will generate a lot of wins for us in future programmes,” Lucon says.
The shift also reflects a broader principle in GM’s logistics strategy: targeted capital investment in areas with high return. By committing modest resources to custom containers or supplier-side packaging areas early, GM avoids costlier workarounds later in the supply chain. Suppliers, in turn, benefit from clear standards and direct support, which can reduce their own costs and preparation time.
As Lucon frames it, small changes upstream can yield outsized results downstream. Reducing unnecessary touches and stops – from supplier to line-side – is “the right direction”, he says.
Deepening partnerships for agility and visibility
For Lucon, strengthening GM’s logistics begins with what he calls three pillars of stability: strong partnerships, actionable data and a capable team. Each plays a role in ensuring the network can respond quickly to change.
Partnerships extend across the value chain. “It starts with the right relationships, a partnership with our stakeholders, internal and external,” Lucon notes. “When changes are needed, I should be able to make the call and have [the partner] put me in front of everyone. I need to be the OEM of choice.”
Building on this focus, GM is committed to building long-term, strategic alliances with its partners. Lucon spends significant time with logistics providers and tier suppliers to align plans and strengthen trust. Just as importantly, GM is signalling to suppliers that it values disruptive, innovative ideas to help the company adapt to rapidly evolving supply chain needs.
The second pillar, data, underpins these relationships. Sharing forward forecasts and early warnings with carriers allows them to plan capacity, while GM requests deeper transparency from suppliers, including tier-two inventory levels and production schedules. “The more transparent the communication, the faster we can respond,” Lucon says.
The third pillar, team capability, is central to sustaining improvements. “We’ve built a very strong team here, with deep experience in both inbound – which carries automotive risk – and outbound,” he notes. Skilled teams can translate data into action and leverage relationships to resolve issues before they escalate.
Building resilience for the long term
In the background of all these strategic shifts is a rapidly changing global market. Lucon’s approach to logistics resilience accepts that crises are not anomalies but part of the operating environment. The goal is to design systems for decades, not just the next quarter.
Lucon shares: “Since GM has more than a century of experience navigating change and opportunity in the global automotive industry, we will continue to maintain our long-term thinking and build solutions not for the months, but for the years and decades to come.”
“We’re working for a sustainable future,” he says. “We want to make sure the business stays strong for the long term, not just for the quarter or the month.”
Lucon also uses crisis situations to test new operating models. In some cases, faster, leaner processes developed under pressure have been kept permanently. “When we find a better way during a crisis, and it works, we don’t go back,” he explains. “We make that the new standard.” This “test and keep” approach means each disruption leaves the network stronger.
When it comes to long term resilience, “We need to be agile… be ready to change, perhaps much quicker than in the past,” says Lucon. “The results are speaking for themselves,” Lucon says, pointing to GM’s steady performance despite industry turmoil. GM has maintained steady performance, a fact Lucon attributes to embedding resilience and flexibility into every level of the operation.
