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Compact case
Case
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Reference no. IMD-7-1566
Published by: International Institute for Management Development (IMD)
Originally published in: 2014
Version: 25.06.2014
Length: 5 pages
Data source: Published sources

Abstract

This is part of a case series. In early 2014, General Motor's (GM) was hit with a crisis of immense magnitude. The company's new CEO Mary Barra had been in post for just 11 weeks when it was revealed that faulty ignition switches on GM models dating back to 2001 were directly responsible for 13 deaths and 31 crashes. Internal documents from 2005 said there was 'no business case' for fixing the problem. Rapidly taking control, Barra publically apologized, declaring she was personally taking the lead on the recall of more than 2 million vehicles. Soon after, following tremendous scrutiny of the company and her actions by the media, she had to withstand two days of aggressive questioning from committees in the US Senate and House of Representatives.
Industry:
Size:
USD155 billion in revenues in 2012, 219 000 employees in 2013
Other setting(s):
January to April 2014

About

Abstract

This is part of a case series. In early 2014, General Motor's (GM) was hit with a crisis of immense magnitude. The company's new CEO Mary Barra had been in post for just 11 weeks when it was revealed that faulty ignition switches on GM models dating back to 2001 were directly responsible for 13 deaths and 31 crashes. Internal documents from 2005 said there was 'no business case' for fixing the problem. Rapidly taking control, Barra publically apologized, declaring she was personally taking the lead on the recall of more than 2 million vehicles. Soon after, following tremendous scrutiny of the company and her actions by the media, she had to withstand two days of aggressive questioning from committees in the US Senate and House of Representatives.

Settings

Industry:
Size:
USD155 billion in revenues in 2012, 219 000 employees in 2013
Other setting(s):
January to April 2014

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