CEO Akerson Shuffles Executives to Put Own Stamp on GM

CEO Akerson Shuffles Executives to Put Own Stamp on GM

By Dale Buss January 21, 2011

Not content to settle for slight progress when he's confident that things could be improving robustly, General Motors CEO Dan Akerson is moving more and bigger pieces around on his executive chessboard.

And Akerson hopes that the results of a handful of moves announced this week will be to accelerate GM's product-development function, restock its thinning pipeline of new vehicles more quickly, light a fire under the company's technology prowess, and further globalize the company's operations at a time of intensifying worldwide integration within the industry's biggest players.

"He's like a lot of people who have looked at the auto industry from outside and then come into it," said David Cole, chairman emeritus of the Center for Auto Research, in Ann Arbor, Mich,. and a long-time student of GM. "He believes if he really pushed hard, he can make things happen more quickly."

In just the last few days, GM has:

- Named Mary Barra, its human-resources chief, as its new senior vice president of global product development, and moved the post's previous occupant, Tom Stephens, to the new position of global technical officer.

- Promoted Chris Perry, head of its Chevrolet division, to the post of U.S. CMO, replacing his boss, Joel Ewanick, who recently was promoted to global CMO.

- Removed Chris Preuss as president of GM's OnStar brand in favor of Linda Marshall, who worked for Akerson when he ran Nextel Communications.

Akerson's Plan

The moves appear to sharpen at least four tendencies that Akerson has brought to GM since he replaced Ed Whitacre as CEO last fall summer after coming to the job from Carlyle Group, where he ran the buyout firm's global activities.

First, Akerson has made no secret about his desire to make GM faster to market. Under recently retired vice chairman Bob Lutz, the company drastically overhauled its product-development process and produced a resulting string of big winners, including the Cadillac SRX, Buick LaCrosse and Regal, and Chevrolet Equinox and Camaro.

But Akerson has worried openly about delays in new products destined for some important segments in a recovering market, such as GM's next-generation pickups. He has said he thinks that the company is a year behind where it should be in some areas. Cost cuts, and an ambient haze because of the slide in auto sales and U.S.-government ownership over the last two years, were partly to blame for that. Yet clearly Akerson also blames Tom Stephens, the GM lifer who took over the function after Lutz.

"He's still got to be cautious," Cole said of Akerson. "The complexity of manufacturing and product development in the auto industry is extremely high, and if he 'accelerates' things without the right level of execution - well, you've got to be careful not to dive into things too quickly."

Seemingly to safeguard against penalizing GM in that way, Akerson turned to Barra. She has the advantage of three decades' experience with GM, an engineering and manufacturing background, and what Akerson said was an ability to work well with people, he said in announcing her appointment. today.

A Global View

Second, Akerson's moves overall appear aimed at emphasizing a holistic view of GM's markets and operations around the globe. Like most big players today, the company is long down the road toward worldwide integration of product development and manufacturing; GM engineers in China, for instance, have been heavily involved in designing new Buicks for the U.S. market.

But GM didn't have a global CTO or CMO before the most recent appointments. Stephens now will be in charge of GM's research-and-development worldwide. And Ewanick's recent appointment as global head of marketing is meant to boost the integration, effectiveness and efficiency of programs worldwide.

Third, Akerson has spoken often about his concern that GM might be left behind in certain technologies that are driving the auto industry these days, such as "telematics" and in-car "infotainment" systems. He also is eager for the company to press hard in areas where it already has seized advantages, such as the extended-hybrid powertrain that propels the Chevrolet Volt.

This is reflected in the new job he selected for Stephens as well as in the fact that he elevated Marshall from her position as head of global business strategy and development for OnStar, which she began last fall. Akerson appears to want someone running the brand who has experience in the telecom business, as Marshall does.

OnStar is in a tough battle with Ford's Sync system for primacy in the growing area of in-car connectivity. And Ford has had the upper hand because its system works with just about any smart phone, whereas OnStar is a safety and security system that is hard-wired into GM cars.

Streamlining Marketing

Fourth, Ewanick keeps getting more freedom to write his own ticket for marketing GM. Before he would join GM as its U.S. CMO last spring, Ewanick demanded carte blanche for reshaping the company's brands in the U.S. market; he got it.

Now, after expansion of his portfolio to include the entire globe, Ewanick has been able to install Perry as his crucial U.S. right-hand man after bringing Perry to GM last year as chief of the Chevrolet division. Perry worked for Ewanick in marketing at Hyundai.

"He's definitely running on a clear field," Cole said of Ewanick. "And with fewer brands for GM to manage, what he wants to do on a worldwide basis is very doable."

Photos by GM

1 - GM CEO and Chairman Dan Akerson

2 - Mary Barra, GM head of Global Product Development

3 - Linda Marshall, president of GM's OnStar

4 - GM Chief Marketing Officer for North America Chris Perry

 

Dale Buss:  is a frequent Edmunds' AutoObserver.com contributor.