Traverse City Record-Eagle

Business

April 3, 2014

GM's Barra deflects hard questions

WASHINGTON (AP) — General Motors CEO Mary Barra didn’t squirm on the hot seat Tuesday. On the job less than three months, she calmly answered or deflected tough questions from a congressional committee about faulty parts responsible for at least 13 deaths and the recall of 2.6 million cars.

Barra frustrated lawmakers by fending off questions, saying she was awaiting the results of an internal GM investigation. She didn’t know why GM waited more than a decade to recall cars it knew had defective ignition switches. She didn’t know who was responsible for the decisions that delayed the recall.

But experts on corporate damage control said she didn’t have much choice and gave her high marks for her performance on the hot seat.

“Barra’s rope-a-dope is the best of GM’s bad options today,” said Washington crisis management consultant Eric Dezenhall. “There isn’t a corporate lawyer in the country that’s going to allow her to engage in freelance speculation about things she doesn’t know yet. No, that’s not satisfying to the public and media, but the alternative is much worse.”

Investors shrugged. General Motors Co. stock, down more than 7 percent since March 11, barely budged Tuesday, slipping 8 cents to $34.34.

Barra apologized for GM’s slowness in warning customers about the problems and promised to change the automaker’s culture to put a new emphasis on safety. “Barra held her ground, claiming that today’s General Motors is a different company from the one whose corporate culture allowed this issue to fester for a decade,” said Jack Nerad, executive editorial director Kelley Blue Book.

Ken and Jayne Rimer, whose daughter died in a 2006 accident after a faulty switch prevented airbags from deploying, found Barra’s testimony incomplete. For Barra “not to have any answers” after about three months as CEO was unsatisfactory, Ken Rimer said in the hallway outside the hearing room. “It surprised me how unprofessional that was,” he said.

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