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CEO Barra Leans on Small Circle of GM Veterans

May 1, 2014
3 min to read


Via Reuters


In the midst of General Motors Co's biggest crisis since bankruptcy, new Chief Executive Mary Barra is turning to an inner circle dominated by company "lifers," believing the team is up to handling a massive recall and reinvigorating the company without much outside help, former and current GM executives say.

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Barra's every move is being dissected in the wake of the recall of 2.6 million cars for an ignition switch defect linked to at least 13 deaths.


One question is whether the "New GM" that emerged from bankruptcy in 2009 is a different company from the old one.


Barra's inner circle includes one relative newcomer, and GM has hired three outside consultants for help with the switch crisis, but most of her core team, like Barra, are long-time GM veterans.


Products chief Mark Reuss may be her closest ally, even though the two vied to become CEO, according to a consensus of eight current and former executives, who asked not to be identified. He's a "car guy" and she's a "car gal," an accolade in Detroit for true driving enthusiasts.


The second close advisor is chief counsel Michael Millikin, who has risen in influence as he has helped guide the company's guarded response to the ignition switch defect. He is co-leading the internal probe of the switch.

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GM declined to comment on Barra's closest team.


Barra has said she meets with her team daily by phone or in person. She also makes nearly daily calls to non-executive Chairman Tim Solso, the 67-year-old former Cummins (CMI.N) CEO, who was chosen by the board as chair at the same time Barra was named CEO, in order to mentor her. Solso is not part of the core team running the company's day-to-day operations, though.


When Barra, 52, went to Congress for a grilling, Milliken and Reuss sat behind her as she repeatedly apologized, promised to take care of customers and offered limited details of what actually happened.


The inner team is rounded out by Human Relations head John Quattrone, Alan Batey, the company's point person with U.S. dealers, and former Wall Street banker Dan Ammann, who as chief financial officer reworked the company's opaque financial systems after bankruptcy. All of the five but Ammann have been at GM for more than three decades.


"She's not looking for personal advisors who would be separate from the management team," said a person familiar with GM's operations. Barra, a 34-year GM veteran, believes that looking outside the GM executive ranks and board room is not necessary, given the management team's crisis experience surviving the U.S. economic meltdown in 2008 and the company's bankruptcy the following year, the person added. Most have worked around the world for GM.


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