• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO

2

Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

1

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO

2

Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

GM recall: Mary Barra’s ultimate test

By
Doron Levin
Doron Levin
Down Arrow Button Icon
By
Doron Levin
Doron Levin
Down Arrow Button Icon
March 13, 2014, 9:00 AM ET
GM CEO Mary Barra

FORTUNE — The safety uproar engulfing General Motors Co. (GM) and its fledgling chief executive will test Mary Barra’s leadership chops, as well as the view that the new GM is a better company than the bankrupt GM that was bailed out by the U.S. in 2009.

Barra, who became CEO less than 60 days ago, asserted her personal responsibility for handling the crisis, which comes at critical time for GM as it fights to rebuild credibility with consumers, investors, and regulators. GM appears to have known for about a decade of a defective ignition that has cost motorists their lives, though only in the past month recalling vehicles that may be affected. The company said Wednesday the problem was known as early as 2001.

Unrevealed so far are the systems at GM (and the people involved) that failed to immediately address a potentially fatal defect. Also unclear is the extent of legal liability for the GM that filed for bankruptcy and that of the successor company that was incorporated in 2009.

MORE: Broadband on wheels: Connectivity is the new MPG

In an email to GM employees last week, Barra promised the automaker would cooperate fully with authorities and “other parties” with an interest in the recall. GM has undertaken “an internal review,” it said: “We will hold ourselves accountable and improve our processes so our customers don’t experience this again.”

Ford (F) and Toyota (TM) each have been the target of massive regulatory scrutiny and personal injury lawsuits in recent years following allegations that some of their vehicles were unsafe. In the case of Ford, Jacques Nasser, who was then chief executive, testified in 2000 before Congress; a year later he resigned from Ford. Toyota shook up its management ranks following allegations of unintended acceleration that were never proven conclusively.

Barra, by conspicuously shouldering responsibility, is exposing herself to heightened examination of her leadership fitness. Before being mentioned as a possible CEO candidate, she hadn’t been considered in line for the job. An electrical engineer by training, she has worked for GM her entire career, as did her father. On Jan. 15, she became the first woman to run an automaker.

If she performs well during this safety investigation, she could reinforce her leadership traits and authority, as well as galvanize GM’s management ranks, which face withering competitive and organizational challenges. GM still has much to prove to consumers who recall substandard vehicle models from pre-bankruptcy years. The company also must convince skeptical lenders and investors that it can grow profitably and avoid another financial collapse.

On Tuesday, the U.S. Justice Department said it has opened a criminal probe against GM in the Southern District of New York, wire services reported, without identifying the source of the disclosure. Though criminal charges aren’t a foregone conclusion, they raise the stakes for the automaker, which already is facing a broad government investigation into the way it handled the defective ignition in small-car models that has resulted in at least 13 deaths and 33 accidents.

MORE: Video: Why Mary Barra has never asked for a raise

The Justice Department could be looking into possible liability under the Transportation Recall, Accountability, Enhancement, and Documentation Act, sometimes known as the TREAD Act. Passed in 2000 during the Ford/Firestone investigation, it was designed to punish automakers that knowingly fail to report defects that could endanger lives.

GM on Feb. 13 said it was recalling 780,000 Chevrolet Cobalts and Pontiac G3s built from 2005-2007. Two weeks later the automaker recalled 842,000 Saturn Ion, Chevrolet HHR, Pontiac Solstice, and Saturn Sky models. None of the vehicles in question are still manufactured. After consumer complaints began in 2004, GM learned that the ignition, under certain conditions, could slip from drive into accessory or shutoff mode, turning off the engine, locking the wheel, and disabling the airbag and other safety equipment.

Mary Barra’s honeymoon in office has been short and far from sweet. Her fiery baptism, on the other hand, could be lengthy.

About the Author
By Doron Levin
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Gen Z hiring manager says CEOs are right about her generation’s ‘attitude’ problem after a candidate took the interview from her phone
SuccessThe Interview Playbook
Gen Z hiring manager says CEOs are right about her generation’s ‘attitude’ problem after a candidate took the interview from her phone
By Orianna Rosa RoyleJune 9, 2026
34 minutes ago
Mortgage rates today, June 9, 2026
Personal Financemortgages
Mortgage rates today, June 9, 2026
By Glen Luke FlanaganJune 9, 2026
36 minutes ago
Current refi mortgage rates report for June 9, 2026
Personal Financemortgage rates
Current refi mortgage rates report for June 9, 2026
By Glen Luke FlanaganJune 9, 2026
36 minutes ago
Current ARM mortgage rates report for June 9, 2026
Personal FinanceReal Estate
Current ARM mortgage rates report for June 9, 2026
By Glen Luke FlanaganJune 9, 2026
36 minutes ago
How Michael Saylor’s preferred stock gamble could trigger a death spiral for Strategy
InvestingFinance
How Michael Saylor’s preferred stock gamble could trigger a death spiral for Strategy
By Shawn TullyJune 9, 2026
37 minutes ago
Chinese beauty brands flock to Southeast Asia as their first step in going global
RetailChina
Chinese beauty brands flock to Southeast Asia as their first step in going global
By Angelica AngJune 9, 2026
3 hours ago

Most Popular

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO
Economy
'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO
By Jim EdwardsJune 8, 2026
22 hours ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
2 days ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
11 hours ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
18 hours ago
'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
Economy
'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
By Nick LichtenbergJune 7, 2026
2 days ago
Current price of silver as of Monday, June 8, 2026
Personal Finance
Current price of silver as of Monday, June 8, 2026
By Joseph HostetlerJune 8, 2026
19 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.