GM CEO Mary Barra Continues To Lead Positive Disruption At The Automaker
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General Motors CEO and chairwoman, Mary Barra, has been ranked the most powerful woman for the second year straight. Those honors don’t come easily.
Fortune has put together Barra’s power sheet, recapping all that she’s done to help bring GM from an inward-thinking company to a future-forward propulsion company.
It starts with the changes GM is not responsible for and cannot control. The auto industry itself is facing incredible disruption through ride- and car-sharing services, electrification and fuel cells are becoming prevalent alternatives to fossil fuels and autonomous driving is closer than ever.
What has GM done under Barra’s tenure in just under three years? It has invested $500 million into Lyft, securing itself a future in ride-sharing; it has launched a personal mobility brand in Maven; the automaker purchased Cruise Automation to quicken its pace in developing autonomous technologies and is on the verge of introducing the 2017 Chevrolet Bolt EV, an electric vehicle with an affordable price tag and 238 miles of range.
Not to mention, within days of taking her position as chief executive officer, GM was thrown into one of the largest and most controversial automotive recalls in history, linking the automaker to over 100 deaths to this day. Her handling has been praised as transparent and even genuine.
But, she’s also helped “melt the frozen middle” of GM management, concerned with simply surviving. Internal GM surveys have consistently shown a positive behavior improvement, achieving “a tremendous improvement in the engagement of employees.”
While the scorecard is full of positive remarks, Wall Street isn’t sold just yet. GM’s stock price hovers lower than its IPO value. Time will tell if Barra’s doing have worked wonders, but the present is full of positive signs.
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Marys greatest change was the continued internal Culture change at GM.
GM for decades has a very damaged culture and when Lutz arrived he set out to change it. Mary has been very key to continue this in the face of great opposition by some internally.
One thing that helped was the ignition deal as it exposed a lot of the damaged culture where GM had not internally done things right for a long time. It gave her the ammo to confront those who opposed change and get the needed fix for many areas that have been needed.
There is still more to do and she will continue to make these changes.
Mary and Mark are the two people GM really needed in place when they came out of Chapter 11. Both are in the right spots making the needed changes and fighting to change many things that have needed changed for years.
Whether you like or not, bottom line is leader served at the desire of the stockholders. Sadly results important to stockholders has been less than exemplary! Stock valuation is mediocre at best!
Well considering GM has shown more profits and more dividend than they have in years and all while in the midst of rebuilding the company only a hand full of years away from Chapter 11 She has done her job.
Right now most automakers stock is soft as the future is for a down turn in auto sales. The market growth is expected to stop. All this while regulations and the need for investment grows.
Considering GM has been trying to kill off Fleet sales and increase ATP per unit to make each car sold more profitable it should help them if and when the down turn arrives. Most companies today are not that well prepared.
If you are investing there are other stocks much better to invest in than any automaker right now.