It is not science fiction story, but a naked truth that 2.6 million cars were recalled by GM for faulty ignition switches, which resulted in13 deaths and more than 40 crashed. Well, it was no less than a mystery. At the end GM’s CEO Ms Marry Barra could be declared as a scapegoat and she maybe forced to take charge of all the mishap and it looks very unfortunate for the first ever women CEO of any automobile maker, having recently took the charge.
In a dramatic movement GM's CEO, Dan Akerson was appointed as the Vice Chairman of a relatively small private equity form Carlyle Group, from where he came to GM. His stepping down from GM’s CEO post was on the personal grounds though.
Was it because he was aware that the recall issue is going to come up and he did not want get crucified? He served GM through the Chapter 11 bankruptcy and even was in the leadership when GM released an IPO. Was it because that GM hired a female CEO, or the misconception that a female CEO will easily come out clean? Ms Barra had to go through severe questionnaire session by the female senators during the Congressional sessions.
Beyond doubts, Akerson’s stepping down raises eyebrows, even though the conspiracy theory is with plenty of loopholes. His public comments proved that he had severe anger and opposition on Ms Barra becoming his successor. Ms Barra had strong opponents for CEO post and that means that many of them were not aware that the disaster is near.
In the midst of all these woes, Barra is emerging as a winner by her right moves and she even did a public apology, Surprising fact is that she learned the technical issue behind the faulty ignition switches only after becoming the CEO. She has been heavily supported by the public and even became a public face for GM. She held public meetings VC s, and even went out to meet the victim’s family.
She has hired former US Attorney, Anton Valukas in order to conduct an enquiry and other efficient attorney Kenneth Feinberg, who is handling the funds of 9/11 and Boston bombing victims, for a possible compensation.
Her challenges are not yet over, now she has to get through the order to park all faulty cars until they are fixed. Her contention will be to prove the parking unnecessary. The reimbursement issues will be another heavy task. Finally Barra has to face Congress to explain what went wrong and what her action plan is to support her company as well as the clients. And of course that is not going to bean easy thing.
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