we talk to mary barra early.t's sort of future guide in terms of subgrowth seems to be pressuring that stock, amongst other things, because they did have quite ro ssciostngubriptn additions. "squawk on the street" is right back >>> gm shares under pressure following the latest quarterly results and did raise its full year profit guidance thanks to cost cuts and investments it's making in what will be fewer new products and the company in the midst of negotiating new labor agreements in hopes of avoiding a strike that could take place later this year. here's what mary barra had to say about that. >> we're very proud of the compensation package that we have for our manufacturing employees. we think it is very strong there's always aspects of it that we can look to improve and, again, while we're maintaining our competitiveness. we're trying to make sure that all parties involved and people with interests understand where we are at and have the facts and we can get to an agreement without a strike. >> strike uaw, th

lots to discuss with gm's ceo mary barra don't miss it later this morning on "squawk on the street."ll talk about not only these numbers which are way above expectations, i mean, they are killing it in terms of average transaction price of almost $52,000 a vehicle but it's the ev business and investments that are being made there and the fact that they are increasing their cost cuts as well as pulling back on capex, they're not going to say, i don't think they're going to say on the conference call that we expect things to slow down in the economy, but it's clear they are watching the cost side of the equation at general motors >> all right phil, looking at -- it's -- it's a weird business, $50 billion company, $54 billion company. >> yep. >> but one of the, you know, linchpins of the u.s. economy still, so it's weird it's been tough. a lot of debt. tough to -- it's a daunting future, uncertain future. >> yeah, because of electric vehicles, joe, but you look at the ice business, people will say that's ultimately going to melt yes, someday it will but right now they are killing it whe

. >> i was going to ask you more about gm and mary barra saying the domestic production of their evss been constrained because of the battery production. what are the expectations for when that may alleviate? >> they still say they expect to build basically, cumulatively, 400,000, if you go back to the end of last year all the way through the middle of next year. that's still their guidance. and they are ramping up production, but this is coming a lot slower than i think a lot of people anticipated general motors is preaching patience to people saying, relax, these vehicles will be there. they're not changing their cadence in terms of the rollout of electric vehicles but overall, when you talk with people, when you talk with consumers, the one thing you hear time and again is, it's tesla and then a lot of others tesla still has the hammer, is what i'm saying here that's why you see the model y and the model 3 continue to dominate sales >> phil, we talked a lot in recent weeks about a standard for charging in this country at least. and i wonder if you think that's moving the needle in

and the companies are spending money to accelerate growth as mary barra just mentioned on the vehicle side and electric vehicles are coming. and in north america, it's probably going to be more on the pickup truck and van side which is the strength of general motors and ford. >> i like your subtle analysis here, michael. i mean it. i guess if i'm going to put it in my words, it's that gm is better positioned today because things aren't as bad as they usually are. >> that's a good way to put it that's exactly right one of the reasons why the stock has been stuck in that rut is because in downturns they perform poorly including going bankrupt in general motors case. >> yeah. so the buy rating of 60 by when? >> usually 12-month time horizon. >> michael, thank you very much. michael ward of the benchmark company. appreciate your time. >> thank you for having me. >> you talk about ev transition and the fact that the labor scheme there is not as intensive in terms of man hours as it is with ice engines so this is going to be a sticking point. >> many, many fewer parts to assemble among othe

mary barra reported blow outnumbers and she has to negotiate with the union. these guys work hard, they want a piece of the pie, and they were going to get them. congratulations to them, i think it's right, and and i think they deserve it. i wasn't ever really worried about a strike, i just wasn't with. i didn't think they were going to push it there. liz: yeah. ups found some money in the couch cushions. they made $75 billion in profits last year on $100 billion in revenue. [laughter] >> exactly. so how can they turn around and say, jeez, we can't find the money. are you kidding me? [laughter] liz: i know. well, watch out for fed exbecause they're next possibly -- fedex. i think september they have to be watching -- >> and gm, i think, is going to be next too. liz: thank you, kenny, very much. folks, we need to check the clock, and here we go, the federal reserve's decision on interest rates is now 22 hours and 50 # minutes away. the committee probably wishes that could be pushed to friday because that's when the u.s. bureau of economic analysis reveals the f

i mean, i'm waiting for mary barra to say, look, we've got the car that they want, and the truck that, but we're not hearing that yet >> yeah. again, the ford numbers this morning, pretty interesting. just the demand for cars we got levi's tonight, jim >> ford's been up endlessly. i have levi strauss on i think that will be interesting. apparel is a black hole. it's a -- i mean, again, referencing the numbers from nike, the conference call about inventory. when you start -- you say, listen, i want to make it clear, we've no inventory problem immediately, i think, wow, geez, how bad is the inventory problem? and then when the cfo, first sentence out of his mouth is, we're a growth company geez i always thought they were a growth company so, i mean, i preface -- the one i'm actually looking for, i'm looking for vf port to be able to make it so that the big charges are taken and that one can come back at $18 she probably has to cut the dividend but i do think that ralph lauren is the only one i want to own. >> in apparel right now? >> yeah, ralph lauren is really crushing it. you want to

that's farley and mary barra, general general motors ceo, are trying to figure out.invest in that part of their business, but it's a hard world to be in when musk continues to eat everybody else's lunch because he has an ability to not care about profitability in the way that some of these other ceos don't have a choice investors don't care whether musk weighs on profitability or not. they care about the growth are investors in general motors and ford willing to overlook profitability in evs the way they are in tesla? i don't know >> well, and how much brand affinity is there if you've owned gm cars your whole life? if you've owned ford cars your whole life, do you one day pivot to a tesla or do you stick with that brand just because that's what you know, you know where the dealerships are, you know where to get it serviced i don't know how strong those bonds really are, especially when you're looking at just such a different model in terms of evs and the other things that people look for. it's just not your traditional car shopping experience. >> yeah. david's going

important to watch that, because when you look at the way gm traded, it started going down when mary barrae ceo, glossed over the union issue that's a big mistake reminds me of the 1930s uaw, which we don't want. we also didn't mention what charlie scharf did at wells fargo, the ceo with the best capitalized bank has added a $30 billion buyback. people just basically say, you know what we should be focused on is bank west. >> you mean that deal? >> the deal. >> it's a little deal. >> well, but it was center bridge i thought you would have followed that a little >> warberg and center bridge, talking about bank of california and pacwest getting together, which is helpful to both of them they brought in new capital, which is more helpful overall with private equities stepping up to buy shares of bank of california 21.8 million shares of common at $12.30, 10.8 million shares of a new class of nonvoting common equivalent at $12.30 and that includes warberg center bridge stepping up. you've got consolidation, pacwest responding positively. it was a stock for stock deal. let me give you the terms

ceo mary barra blamed a supplier, also said that she does expect that to pick up soon. will include a next generation version of the chevrolet bolt, which many thought would be phased out as the opening bell rang this morning, disney announced it has delayed the release of poor things, one of its movies, because of the ongoing strike in hollywood and may now delay the release of several other movies. hollywood insiders say the filming of other movies also delayed with that ongoing strike . taking a live look at the numbers up across the board a little bit higher in the last hour with the dow jones gaining about 70 points, the s&p 500 up about a quarter of a percent. the nasdaq gaining the most, a little more than a half of a percent wall street watching for the federal reserve this week with that announcement on interest rates expected tomorrow. the pay gate pay gap between men and women is the closest it has ever been. the us labor department reports women still earn just $0.84 for each dollar made by men. but economists say several factors have helped shrink that gend