DETROIT (AP) — Kettering University President RobertMcMahan was traveling in China a few
months ago when he bumped into oneof the university’s board members at an airport in Shanghai.MaryBarra,
the busy global product development chief at General Motors Co.,might have just said hello and turned
back to her phone. Instead, shehad a long discussion with McMahan’s teenage son about his education
andhis efforts to learn Mandarin."I turned to my son after she leftand said, ‘I put a month’s pay
on the fact that you just met the nextpresident and CEO of GM,’" McMahan said. "Even he, as a
16-year-old, wasimpressed by her approachability."McMahan can keep his pay. OnTuesday, GM’s board
named Barra, a 33-year company veteran, as its nextCEO, making her the first woman to lead a major car
company.Barra replaces Dan Akerson, who moved up retirement plans by several months to help his wife,
Karin, battle advanced cancer.WhenBarra starts her new job Jan. 15, she will lead a company that’s
madenearly $20 billion since emerging from bankruptcy in 2010, much of itfrom the cars and trucks she
helped develop. But she still faceschallenges of paring down GM’s costs and winning over buyers
ininternational markets such as India and South America.Akerson,65, said he had planned to stay at least
until spring, but his wife’sdiagnosis changed that. He said the board unanimously picked Barra
fromseveral internal candidates because of the breadth of her experience,her management record, her
people skills and her understanding of GM’soperations."This is an executive who has a vision of
where she wants to take the organization," he said.SinceFebruary 2011, Barra has held what many say
is the most important jobat GM. She joined the company in 1980 as an engineering student atKettering —
then known as General Motors Institute — and became a plantmanager, executive director of engineering
and head of human resources.Alongthe way, she earned a reputation as a manager who made tough
decisions,yet was able to get people to follow her lead and work as a team,according to current and
former GM executives. Noting her talent, GMsent her to Stanford University to get an MBA.The
51-year-oldexecutive has been in charge of design, engineering and quality for allGM vehicles and has
shepherded most of the company’s recent new vehicleintroductions. Under her command, GM rolled out
brawny new full-sizepickup trucks, the Chevrolet Silverado and GMC Sierra, and the ChevroletImpala
full-size car, which earned the highest score for a sedan intesting by Consumer Reports magazine.During
her tenure, GM’squality scores rose in surveys done by J.D. Power and Associates. Shealso streamlined
the organization, eliminating positions and putting oneengineer in charge of each vehicle."I don’t
see any reason whyshe won’t be a huge success," said Ed Whitacre, a former CEO andchairman who
promoted Barra to head human resources.Akersonhinted at Barra’s promotion earlier this year when he told
a women’sbusiness group in Detroit that a "car gal" would someday run one of theDetroit Three
automakers. But he made it clear Tuesday that she wasn’tpicked because she’s a woman."Mary’s one of
the most gifted executives I’ve met in my career," he said.AmongBarra’s biggest tasks is executing
plans designed to cut costs andputting out better products, Akerson said. One big step in gettingthere:
making more vehicles off the same underpinnings, or platforms,that can be sold in multiple markets, like
the Chevrolet Cruze compactcar.In 2009, GM had 30 different vehicle platforms, adding tomanufacturing
complexity and cost. Under Barra’s leadership, it’s movingto build nearly 90 percent of its cars and
trucks off five or fewerplatforms by the end of this decade, Akerson said.In an Octoberinterview with
The Associated Press, she said GM is also moving to buildvehicles with more common parts to trim costs
where customers won’tnotice.As product development chief, Akerson challenged Barra tobring vehicles to
market faster. She responded with swift introductionsof the Cadillac ATS, a BMW 3-Series competitor, and
the Impala. When themidsize Chevy Malibu didn’t sell well, Barra’s team gave it new looks,more interior
space and a new engine with better gas mileage — all inless than a year."She is polished,
soft-spoken, invariablypolite, but firm and goal-focused. She will have a learning curve, butwill be an
excellent CEO," said Bob Lutz, a retired GM vice chairman whoonce led product development.Barra
grew up near Pontiac, Mich.,in a car-oriented family. Her father was a die maker who retired from
GMafter 39 years. GM’s previous two CEOs, Akerson and Whitacre, came fromoutside the auto industry and
lacked the experience that Barra has,said Erik Gordon, a professor at the University of Michigan’s
RossSchool of Business."There’s nobody with more years of honest’car-guy’ credentials than she
has," Gordon said. "She’s the one to dothe breakthrough."Akerson took over GM in
September 2010, as thecompany prepared to return to the public stock markets. During histenure, GM has
made billions of dollars in profits and is sitting on$26.8 billion in cash. Its profit margins in North
America are healthy.Akersonhad been waiting for GM to officially shed the derisive moniker
of"Government Motors" when the government sold the last of the GM sharesit got as part of a
bailout in 2008 and 2009. That happened Monday,clearing the way for the Barra announcement.The GM board
alsodecided to separate the positions of chairman and CEO. Barra gets aboard seat, but director Theodore
Solso will succeed Akerson aschairman. Solso, a GM board member since June 2012, is the formerchairman
and CEO of engine maker Cummins Inc.Copyright 2013 The Associated Press. All rightsreserved. This
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