I still like what Mary Barra is doing with GM.
Sure they had a loss, but two important objectives were achieved.
They sold their long time losing European operations. Like any investment, at some point, you have to decide that it isn't living up to expectations.
This is always a challenge. Why? Because you don't want to do it too quickly and not give the investment time to mature and reach expectations. On the other hand, after a significant amount of time, you have to determine that expectations just will not be met. What kind of time frame is significant? I would suggest enough time to change the functioning operations which can take 3 to 5 years or more.
Barra is also is facing some economic headwinds. The auto industry production peaked and is now facing the typical excessive inventory. Barra's objective is to reduce the effect of the typical vacillations of the industry by planning and taking proactive measures. The cycles of the industry are not going away, but taking appropriate and preemptive actions can serve to mitigate the effect on all parties - customers, shareholders, union workers and management.
Hearts and minds. Hearts and minds. Keep up the good work Mary. It is tough changing the course of a huge vessel!
