How General Motors is adapting its supply chain for flexibility in a volatile environment
At ALSC Global 2026, GM's Marcio Lucon told Automotive Logistics that stability in the logistics market is a thing of the past, and OEMs must get creative in how they work with partners to build the flexibility and adaptability needed to navigate ongoing volatility.
According to Marcio Lucon, executive director of global logistics and containers at General Motors, stability is no longer something the logistics industry can expect; instead, firms must accept that they will likely operate in an unstable and volatile environment forever.
The focus then becomes how these companies can adapt their supply chains to operate efficiently in this environment, seeking creative solutions and working closer with partners to achieve that flexibility at the right cost.
"That's the direction we are going in and it's a big challenge but I don't see any other way of running this business," Lucon said.
He emphasised the importance of transparent, two-way relationships with partners, taking advantage of the unique knowledge and expertise they can offer that the business might not have internally. Ultimately, it is these kinds of two-way conversations that drive a partnership from transactional to collaborative and allow partners to be engaged earlier in the planning process.
One of the changes in environment that GM has had to adapt to recently is the new operating conditions in North America. "In order to continue leading this market and performing really well, we need to direct the strategies to build where we sell and to buy where we build," he explained. "That's the way we're going to create a resilient business model."
But Lucon acknowledged that this localisation strategy also creates new cost challenges. The company therefore needs to work with partners to identify ways of delivering this transition at lower cost, including through greater automation and efficiency. While GM knows some of the changes it needs to make, he said it also needs partners to bring new and innovative ideas to the table.
This feeds into GM’s broader focus on total enterprise cost, which Lucon said has become more difficult to calculate in a volatile environment. Rather than making short-term decisions based on known variables, logistics teams need to get ahead of discussions, engage with partners earlier and consider the full life-cycle of a programme when determining the best overall cost.
Looking ahead to 2027, Lucon said GM will need to maintain efficient day-to-day operations while building a more flexible logistics model that can adapt to changing conditions without losing sight of enterprise cost. He also highlighted packaging as an area where he sees further potential for innovation, revealing that GM has developed and patented its own solution after suppliers failed to provide an option that met its needs. He said the company now wants to take that solution forward, with the potential to create a significant impact for GM and the wider industry.
Watch the full Red Sofa interview with Marcio Lucon from ALSC Global 2026 to hear all about GM's approach to flexibility, partnerships, AI and cost reduction.
