Barra, who is among Autocar Professional’s newsmakers of 2015, succeeds Theodore Solso, who will continue serving as the Board’s lead independent director.
05 Jan 2016 | 5858 Views | By Autocar Pro News Desk
Mary Barra, who has been CEO of General Motors since January 15, 2014, has been elected as its next chairman. On January 4, the General Motors Board of Directors announced it has unanimously elected Mary Barra as its next chairman, effective immediately.
Barra, who is among Autocar Professional’s ...
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Mary Barra, who has been CEO of General Motors since January 15, 2014, has been elected as its next chairman. On January 4, the General Motors Board of Directors announced it has unanimously elected Mary Barra as its next chairman, effective immediately.
Barra, who is among Autocar Professional’s newsmakers of 2015, succeeds Theodore Solso, who will continue serving as the Board’s lead independent director.
2015 was a turnaround year for General Motors globally, steered by the first woman CEO at its helm, Mary Barra. Taking over her new role in January 2014, she was confronted with multiple challenges. The company was losing money in Europe and, outside of China, also not making much of a mark in Asia. The mantle of leadership, therefore, did not rest easy on her head by all counts.
With a 33-year work record at Chevrolet, Barra, an engineer by profession, took on the responsibility head-on with 2015 turning out to be a defining year. Outlining the makeover strategy for the company, Barra, on an India visit in July 2015, underlined the significance of the local market. She also outlined an aggressive investment plan of $1 billion (Rs 6,400 crore) for new product development and for strengthening GM’s manufacturing footprint.
“Chevrolet is committed to India for the long term. We are delivering on our promise and doubling our investment in India. This will allow us to provide our Indian customers the great vehicles they want and the world-class customer experience they deserve. It will also support the government’s Make in India programme,” Barra elaborated at the announcement of the company’s future plans.
The investment forms part of a global outlay of $5 billion over the next few years. GM is developing a new family of Chevrolet models and will roll out 10 new models over the next five years in India to double its market share by 2020. The carmaker’s current share is pegged at around 1.9 percent in the domestic market. GM India dealerships at that time would also not house vehicles older than three years, in line with the company’s vision to market new models.
To trim flab, the global CEO further declared closure of GM India’s old production facility at Halol in Gujarat by June 2016, enabling its modern Talegaon plant in Maharashtra to spearhead the new model programme with enhanced capacity by 2025. The facility would also evolve as a global export hub for GM with more than 30 percent of its annual production being exported to emerging markets. Soon after, the first of the new models – the Trailblazer SUV – rolled out with the Spin MPV expected to follow suit by early 2017.
“At a time of unprecedented industry change, the Board concluded it is in the best interests of the company to combine the roles of Chair and CEO in order to drive the most efficient execution of our plan and vision for the future,” said Theodore Solso. “With GM consistently delivering on its targets and on track to generate significant value for its shareholders, this is the right time for Mary to assume this role.”
Solso indicated Barra has set a clear vision for the organisation over the past two years, formed a strong leadership team from inside and outside the company, delivered strong operating results and led the introduction of breakthrough vehicles and technologies.
“The Board has improved the overall governance of the company over the past two years and as Lead Independent Director, I expect to continue to build on this solid foundation,” Solso said. “The Board also plans to broaden its active engagement with shareholders as we go forward.”
Commenting on her new appointment, Barra said: “I am honored to serve as Chair of the Board of Directors. With the support of our Board, we will continue to drive shareholder value by improving our core business and leading in the transformation of personal mobility.”
Prior to being named CEO in 2014, Barra served as executive vice president, Global Product Development, Purchasing & Supply Chain since August 2013, and as senior vice president, Global Product Development since February 2011. In these roles, she was responsible for the design, engineering, program management and quality of GM vehicles around the world.
Previously, Barra served as GM vice president, Global Human Resources; vice president, Global Manufacturing Engineering; plant manager, Detroit Hamtramck Assembly; executive director of Competitive Operations Engineering; and in several engineering and staff positions.
In 1990, Barra graduated with an MBA from the Stanford Graduate School of Business after receiving a GM fellowship in 1988. She began her career with GM in 1980 as a General Motors Institute (Kettering University) co-op student at the Pontiac Motor Division. She graduated with a bachelor’s degree in electrical engineering in 1985.
Also read: GM India appoints Markus Sternberg as vice-president – aftersales