Barra Named Crisis Manager of the Year by Fortune
Weathering General Motors' severest crisis since its 2009 bankruptcy earned CEO Mary Barra another accolade today as Fortune magazine called her crisis manager of the year, reported Detroit Free Press.
GM has repaired more than 60% of the 2.4 million cars it recalled for a defective ignition switch that has been linked to 42 deaths, seven crippling injuries and 51 less severe injuries. In addition, GM has recalled an unprecedented number (more than 30 million worldwide and about 26 million in the U.S.) of vehicles this year, which has cost it about $2.7 billion.
But Barra took steps that showed effective leadership in the crisis. For example, she requested an independent analysis of what went wrong in which a former federal prosecutor found scores of individual and corporate decisions and practices that had a factor in failing to correct the defect for more than a decade. She also hired Kenneth Feinberg, a respected lawyer with expertise in running disaster compensation funds to establish a process for victims and their families to pursue compensation outside of court.
"Somehow, though, even as GM has seen its reputation raked over the coals, Barra has come out more admired and more likely to be emulated than ever," Fortune staff writer Ben Geier wrote.
"How exactly, then, has Barra emerged with her reputation almost intact? A simple combination of honesty, humbleness, and a seemingly sincere desire to fundamentally change the errors that led to the problems she's faced."
Geier also drew a contrast between the way Barra presented the candid findings of the report and the way BP Petroleum CEO Tony Hayward responded in 2010 to that company's Deepwater Horizon oil spill in the Gulf of Mexico.
"Barra has made a practice of saying that she doesn't want GM to 'move past' the ignition switch scandal, or to 'put it behind' the company. She doesn't want this to be a bad memory that fades into the background," Fortune said.
"The BP executive always seemed more concerned with moving on with his life, with getting BP past the financial and reputational problems the accident caused, than with actually fixing the problems that led to the spill and helping those affected."
But GM's ignition switch problem continues, although it is generating less media coverage.
Those who haven't filed claims to Feinberg's compensation fund have until Jan. 31 to do so.
Through Dec. 24, Feinberg and his team found 42 surviving families eligible for settlements for the death of a loved one, out of 269 claims in that category.
Overall, the compensation fund has received 2,489 claims. It has found 100 claims eligible for some level of compensation, 306 ineligible and 568 that presented insufficient supporting evidence. Separately, 754 claims are still under review.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →