Ms Barra will replace Daniel Akerson and be the first woman to run a US carmaker. She joined GM as an electrical engineering student in 1980 and has worked her way up to lead GM’s global product development. It is a critical role at a carmaker and Ms Barra received praise for her leadership of GM’s unit. Under her leadership, GM rolled out new pick-up trucks and the Chevrolet Impala, which was highly rated by Consumer Reports magazine. She also has a reputation for keeping costs down and cutting bureaucracy. As head of human resources after the 2009 bailout, she was credited with slashing paperwork which including a 10 page-dress code.
Another thing to high light is earlier this week the US government sold its remaining shares in GM. Overall, it lost around $10bn (£6bn) on its bailout of the carmaker in the aftermath of the financial crisis in 2008 and 2009. The US Treasury spent $49.5bn bailing out GM, and took a 61% stake in the company. In tandem with this bailout, US government stepped in and offered roughly $1.2 billion to Chrysler, a large U.S. automaker was in need of a bailout in the early 1980s. Chrysler was able to pay the entire bailout back, and is currently a profitable firm.
The government bailouts of Chrysler LLC and General Motors Co. saved 2.6 million jobs in the U.S. economy and hundreds of billions of dollars in personal income and government transfers, a new study of the bailout says."In the years ahead, this peacetime intervention in the private sector by the U.S. government will be seen as one of the most successful in U.S. economic history, the Center for Automotive Research said Monday.
Sources: BBC, Malaysiasun
Mary Barra, who General Motors on Tuesday named its next CEO, will be the first woman to run a major automobile maker. She joins just 22 other female CEOs among U.S. companies in the Fortune 500. Here’s a look at the exclusive club.
|Company||Annual Revenue||Market Value||CEO||Date Commenced|
|General Motors||$152 billion||$56 billion||Marry Barra||January 2014|
|Hewlett-Packard Co||$112 billion||$52 billion||Margaret Whitman||September 2011|
|IBM Corp.||$105 billion||$192 billion||Virginia Rometty||January 2012|
|Pepsico Inc.||$65 billion||$126 billion||Indra Nooyi||October 2006|
|Archer Daniels Midland Co.||$89 billion||$28 billion||Patricia Woertz||April 2006|
|Lockheed Martin Co.||$47 billion||$45 billion||Marillyn Hewson||January 2013|
|Dupont Co.||$35 billion||$57 billion||Ellen Kullman||January 2009|
|Mondelez International Inc.||$35 billion||$60 billion||Irene Rosenfeld||June 2006|
|General Dynamics Co.||$32 billion||$32 billion||Phebe Nokakovic||January 2013|
|TJX Companies Inc.||$26 billion||$44 billion||Carol Meyrowitz||January 2007|
|Xerox Corp.||$22 billion||$14 billion||Ursula Burns||July 2009|
|Duke Energy Corp.||$20 billion||$49 billion||Lynn Good||July 2013|
|Avon Products Inc.||$11 billion||$8 billion||Sherilyn McCoy||April 2012|
|Sempra Energy||$10 billion||$21 billion||Debra Reed||June 2011|
|Guardian Life Insurance of America||$8 billion||NA*||Deanna Muligan||July 2011|
|Campbell Soup Co.||$8 billion||$13 billion||Denias Morrison||August 2011|
|Mylan Inc.||$7 billion||$16 billion||Heather Bresch||January 2012|
|Ingredion Inc.||$7 billion||$5 billion||Illene Gordon||May 2009|
|CH2M Hill Cos.||$6 billion||NA*||Jacqueline Hinman||January 2014|
|Graybar Electric||$5 billion||NA*||Kathleen Mazzarella||June 2012|
|Gannett Co.||$5 billion||$6 billion||Gracia Mortore||October 2011|
|Frontier Communications Co.||$5 billion||$5 billion||Maggie Wilderotter||January 2006|
|Yahoo Inc.||$5 billion||$41 billion||Marissa Mayer||July 2012|
NA* – Company is not publicly traded
Economic term to grab:
A situation in which a business, individual or government offers money to a failing business in order to prevent the consequences that arise from a business’s downfall. Bailouts can take the form of loans, bonds, stocks or cash. They may or may not require reimbursement.