DETROIT ( TheStreet) -- Thursday conceivably will be recalled as the day Mary Barra emerged as a leader.
The GM (GM - Get Report) CEO took on a full day of disclosure, apology, exhortation and pledging that GM will never again repeat the mistakes surrounding its ignition switch problems, which led to at least 13 deaths, 47 crashes, the recall of 2.6 million cars and then to a worldwide recall of 15.8 million cars with more to come, Barra said Thursday.
Barra's public events were accompanied by the release of a highly critical 300-page report detailing the results of an internal investigation by former U.S. attorney Anton Valukas. He reviewed 41 million pages of documents and conducted 350 interviews with 230 people.
Barra took over as GM CEO in January, becoming the first woman to head a major automaker. The scandal involving the ignition switch recall began to unfold on Feb. 7, when GM announced it would recall about 800,000 cars.In April, Barra made two appearances before accusatory congressional committees. Two weeks later, she made two appearances accompanying the New York Auto Show, where she was one more taciturn CEO playing defense. In all four cases, she was one more taciturn CEO playing defense. On Thursday morning, she appeared before 1,200 GM employees. It was not quite that moment on Sept. 14, 2001, when George Bush stood next to an elderly firefighter, grabbed a bullhorn and said "the people who knocked these buildings down will hear all of us soon." Rather, Barra remained resolutely on script. However, she did seem to take control in a way she had not before the report was released. Early on, she declared: "As I lead GM through this crisis, I want everyone to know that I am guided by two clear principles: First, that we do the right thing for those who were harmed; and, second, that we accept responsibility for our mistakes and commit to doing everything within our power to prevent this problem from ever happening again." GM sales gained 13% in May, two points ahead of the industry's sales pace. She could have been a CEO racing to save the company as sales fell. Instead, she is being given the opportunity to mold an image of a safety-oriented company willing to recall too early rather than recall too late. GM has also chosen to compensate victims when it could attempt to hide behind bankruptcy law, which erased prior claims. It still faces investigation and most likely years of lawsuits, but its position is going to be defensible. Investors, so far, have not been forgiving. In early afternoon, GM shares were up 15 cents to $36.67. GM shares are down 11% year to date, but analysts are generally positive about the company's future.
To contact this writer, click here.
Ford and GM Brands Attract Older Buyers But Buick Bucks the Trend
May Auto Sales Soar -- Just Don't Expect the Same in June
GM, Ford Sales Jump in May as Automakers Roll Past Estimates
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts