Akerson's GM takes shape

DETROIT -- Last week, CEO Dan Akerson put his stamp on General Motors Co.

His most significant senior-management shakeup so far aims to intensify GM's focus on leading technologies. And he defied convention with his pick of a new product chief.

Tom Stephens, 62, who took over for retired product chief Bob Lutz in 2009, becomes GM's first global chief technology officer -- an area Akerson, also 62, has pushed since taking the helm in September.

Mary Barra, 49, a former global head of manufacturing engineering and currently GM's human resources chief, succeeds Stephens as GM's product development boss. The changes are effective Feb. 1.

OnStar also gets a new leader: Linda Marshall, who once worked for Akerson at Nextel Communications Inc., replaces the departing Chris Preuss.

The shuffling reinforces Akerson's mantra that GM must win on technology. The former telecom exec's installation of Marshall shows an urgency to rejuvenate OnStar, which has been surpassed by Ford's Sync infotainment system in driver-friendly features.

Stephens' appointment highlights Akerson's fixation on improving fuel economy through innovations such as the Chevrolet Volt's plug-in hybrid powertrain.

In an address to the Automotive News World Congress this month, Akerson said the industry is entering a "technological revolution" in vehicle propulsion, which he said "will drive the success and drive the losers [out] of the next generation."

Stephens, a powertrain specialist, could help GM develop longer-range innovations, such as a gasoline engine that runs, like a diesel, with high compression and no spark plugs.

"Putting somebody with Tom's experience in that position shows that Dan knows technology is more important than ever, especially around powertrain," said Xavier Mosquet, a senior partner at the Boston Consulting Group who advised the U.S. government on its bailout of GM.

Barra's appointment turned some heads -- and showed that Akerson, a Detroit outsider, isn't afraid to go against the grain.

Barra, the first woman to lead product development at any major global automaker, doesn't have the product engineering background of a Stephens or the car-guy cred of a Lutz. And Detroit's automakers historically haven't looked to their manufacturing operations for product talent.

Akerson said in a statement that Barra's ability to work across disciplines and her varied background "will bring a fresh perspective to the critically important job of developing vehicles that delight global customers."

Barra will oversee a staff 36,000 and will be the only woman on GM's executive committee. Ed Welburn Jr., GM's global design vice president, will report to her.

Barra told Automotive News that her first priority will be to see the 2011 launches of several key products around the globe through their final phases. Those include the Buick Verano small car, due in showrooms by fall.

"I have a design focus," said Barra, who drives a Buick Enclave and cites the Cadillac CTS coupe as a design she particularly admires. She said her all-time favorite GM car is the current Chevrolet Camaro, which she also owns.

Barra said that as global head of manufacturing, she worked closely with product design and engineering to tailor vehicles for various markets.

"I worked hand-in-hand with product engineering," she said. "We would push the envelope to make sure to get that great design on the road."

Lori Queen, who served as vehicle line executive for first small cars and then small and mid-sized trucks at GM before retiring two years ago, said Barra is highly regarded inside GM as a "strong leader and quick study."

"I have to believe Mary's appointment will be very well received at GM," she said.

Don Runkle, who spent 30 years at GM, including a stint as head of North American vehicle engineering, said hiring a manufacturing leader as a product-development chief isn't a radical move.

"Honda and Toyota historically were the guys who did the best job of having that strong manufacturing engineering voice in the overall product-development process," Runkle said. "And they were the ones turning out high-quality vehicles at lower cost."

Before last week, Ackerson's highest-profile personnel move came in December, when he named Joel Ewanick head of global marketing. With the Stephens appointment, Akerson now has a global head of technology as well.

That follows the playbook Akerson used while CEO of telecom companies Nextel Communications and XO Communications Inc., where he always made sure to have global technology and marketing leaders.