GM’s new CEO will stay on plotted course image

Mary Barra, General Motors Co’s new chief executive, said she has no plans to deviate from predecessor Dan Akerson’s strategy as the No. 1 US automaker pushes for profitability everywhere it operates.

Akerson, during his tenure of just over three years, led GM through an initial public offering, drove the company to record profits, and to leading positions in China and the United States, the world’s top auto markets. On Akerson’s last full day running the company, GM announced it would pay the first quarterly dividend on its common stock in six years.

“There are no right or left turns,” said Barra. “We have momentum. We have a strategy. If I had to say it in one word, it’s ‘accelerate,'” Barra said, when asked at her first meeting with reporters as GM CEO what changes could be made. “It’s more about accelerating business results by quickly sharing the best ideas.”

Barra, who over the past two days has met in Detroit with GM’s top 300 global executives, vowed to maintain a “fortress balance sheet,” which has been a mantra among executives at GM since 2010, the year after the company emerged from bankruptcy. She said strong finances are a must in the cyclical auto industry and would allow GM to reinvest in its operations and to return cash to shareholders.

The appointment of Dan Ammann as president will allow a greater focus in each of the world’s regions and on the company’s brands, and will speed up GM’s plan to boost profit globally, Barra said. Amman’s focus would lead to better and faster sharing of money-saving or profit-generating ideas across the company.

GM said last week its expected modest growth in the United States and China this year would help fund about $1.1 billion in restructuring costs in its weaker regions, including Europe. It also expects a slight uptick in operating profit this year, an outlook that analysts called conservative.

Barra said all of GM’s targets remain in place, including hitting 10 percent profit margins in North America and break-even results in Europe, both by mid-decade. She also cited opportunity for the company’s luxury Cadillac brand, as well as in the Chinese market.

Via Reuters