We’ve written a lot about the changes happening at General Motors over the last few months. GM Chair and CEO Mary Barra has been at the forefront of much of that coverage, as she is the public face of the company. However, many of the decisions the automaker has made in the last few months have involved the company’s board of directors who are “actively engaged in helping her run the company on a regular basis,” according to the Detroit Free Press, which is said to be “unusual.”
“It’s a very involved board,” Barra said at the annual Deutsche Bank Global Auto Industry conference in Detroit Wednesday. “We’ve got to face the brutal fact and understand what’s happening and seize opportunities as opposed—and lead disruption instead of being disrupted. As we start to think of something new or we see an opportunity, we have a discussion. And then we’ll bring it up again at the next board meeting; or if things are moving so quickly, we all jump on a call.”
The board consists of a wide range of people who have all had a hand in the company’s operations, including day-to-day operations and larger strategic movies that include proposals to build electric vehicles, autonomous cars, and more. The board also had a hand in General Motors’ restructuring plan announced in November, which includes closing five North American facilities and discontinuing several models—such as the Chevrolet Cruze, Chevrolet Impala, and Buick LaCrosse.
Erik Gordon, a professor at the University of Michigan Ross School of Business in Ann Arbor, said in the Freep report that Barra relying on her board of directors isn’t indicative of a weak candidate. According to Gordon, her reliance shows competence.
“Nobody would say Mary is a weak leader,” Gordon added. “If she continues down this path she’ll be one of the legendary leaders in the car industry.”
During the conference, Morgan Stanley Analyst Adam Jonas said several investors asked about changing the company’s name to coincide with the company’s restructuring. He would not discount the idea that a name change is possible. Jonas also said Barra was “kicking butt” in her role as General Motors’ Chairman and CEO.
Comments
Very sensible of Barra and board.
Larry Nassar was at Michigan State University
Anybody on any board on any company in that state is going to be “active” about their fiduciary duties from now on. I fact boards around the world are on notice since Nassar proved that MSU board was asleep at the wheel.
MSU’s board recently fired Engler, a former governor of the state, because he wasn’t doing what they said. If that board can’t get their ship together soon, Nassar’s Victims are going to sue board members directly. GM board understands this new world.
You have certain advantages when you are Chairwoman of the Board and CEO. You get to choose the human bobbleheads that will advance your own agenda.
I am sure when the board meets, questions to Machete Mary like the ones below are not asked:
* What are we going to do to address this falling market share?
* Are closing these plants and laying off people during a season of record profits and angering the government, our employees and the public a good thing to do?
* What vehicles are we going to offer in North America to compete with the Wrangler and Bronco?
* Is it a good idea not to invest in our US and Canadian plants when are competitors are investing in theirs?
* Is this “Triple Zero” thing really what our customers want, or do they want vehicles that are well designed, well priced, and have world-class interiors and styling?
I am sure anyone who would ask these questions would find themselves off the board much as Ross Perot was when he basically told Roger Smith 30 odd years ago that he is running GM into the ground.
Basically run by a committee. A camel is a horse designed by a committee…….
hello. how do i start a new post?