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General Motors

Top 5 priorities for next GM CEO Mary Barra

Chris Woodyard
USA TODAY
Mary Barra with a Chevrolet Cruze in s 2011 photo
  • Experts say she will face myriad challenges
  • But at least GM is far more stable than five years ago
  • Then%2C it faced a bankruptcy reorganization %u2014 and has come a long ways since

In one fell swoop, Mary Barra is going from a 33-year General Motors employee to the first female CEO in the history of Big Auto.

Barra inherits a company fresh from its lifesaving bailout by the government and the exit of U.S. ownership of shares, but one that remains still shackled in some ways to the past and facing a difficult future in the world auto markets. Here are the top five things USA TODAY, based on interviews with analysts and experts, contends she needs to do right away to restore the company's greatness:

• Plan to win, not just join, the race to self-driving cars. GM showed its tech prowess by leading on plug-in cars with the Chevrolet Volt. Now it needs to shift to winning — and winning big — when it come to the next revolution: self-driving cars and the changes they will bring about. "They are undeniably coming," says Karl Brauer, senior analyst for Kelley Blue Book. "General Motors could suddenly find itself left out of the business of personal transportation if doesn't master both the technological and behavioral shifts bearing down on it."

• Kill Buick and GMC. It took a slide into bankruptcy reorganization to force GM to jettison distracting, non-performing brands Saab, Pontiac. Hummer and Saturn. Under Barra, GM should bite the bullet again and kill Buick or GMC or both. Buick was saved during the bankruptcy because of its brand power in China, but in the U.S. it is sandwiched uncomfortably between Chevrolet and Cadillac. GMC represents nothing more than fancier versions of Chevrolet trucks. By going forward with Chevrolet and Cadillac alone, GM can laser-focus its marketing one clearly defined mainstream brand and one luxury brand. "Straighten out this riddle and GM might explode into a new phase of purpose and profitability," says Bill Visnic, senior editor for Edmunds.com.

• Make peace with the UAW. The stars could come into rare alignment for GM and the United Auto Workers when it comes to keeping labor costs in line while ensuring prosperous futures for employees. Barra comes from a blue-collar GM family, the daughter of a tool and die maker. She came up through GM's own university and ran a GM auto factory. An engineer, she could have credibility with UAW leaders and rank-and-file alike that another CEO might not.

• Hit products aren't enough if they don't hit profit goals. GM lately has had a string of breakthrough models. Chevrolet Impala was judged the best sedan of the year by Consumer Reports. Three GM vehicles are finalists for 2014 North American Car and Truck of the Year. Cadillac ATS won for 2013. But great products aren't enough. Ford Motor CEO Alan Mulally has excelled at integrating a company that had too many models for too many markets, boosting profit margins on the remaining few. GM has made progress, but needs to keep consolidating its models onto a few global platforms while still making them appeal to different markets.

• Fix Europe. Barra comes to the top job well prepared, having had loads of responsibility handed her by CEO Dan Akerson, including a spot on the supervisory board tasked with turning around GM's longtime money-losing Opel unit in Europe. It is one of GM's biggest headaches, made even hard by the economy there. GM just took a first, important step by acknowledging that Chevrolet remains weak in Europe and pulling it out, making Opel as its top brand there going forward. Now Barra needs to see that Opel gets the products, money and support it needs to compete.

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