Former GM chairman John Smale dies at 84

John G. Smale, who became chairman of General Motors in 1992 following an historic management shakeup sparked by a period of financial turmoil at the automaker, died on Saturday. He was 84.

The cause of death was complications from pulmonary fibrosis, according to a spokesman for Procter & Gamble, where Smale served as chairman and CEO before assuming the chairman's role at GM.

Smale served as non-executive chairman of GM from Nov. 2, 1992, until Dec. 31, 1995, when he was succeeded by John F. "Jack" Smith, Jr.

He was the first non-GM executive to become chairman of the automaker since Lammot du Pont resigned from the post in 1937.

"Mr. Smale admirably led GM during difficult times in the early 1990s and oversaw a management transition that led the company to restored financial health while at the same time applying some of the marketing vision he brought to the packaged goods industry," GM said in a statement.

Led by Smale, GM's outside directors became increasingly dismayed at the automaker's financial performance in 1991 and 1992 and were looking for a drastic change in management and culture.

In January 1992, Smale began a round of intensive one-on-one interviews with GM's division heads and department chiefs to obtain their honest assessment of the automaker's problems and challenges.

Boardroom coup

As chairman of the executive committee, Smale was able to control GM's agenda, meaning directors in effect could vote on their own priorities and programs rather than management's.

Stempel's duties were split between Smale and Smith, a GM veteran who became CEO after a brief stint as chief operating officer. Stempel died this past May.

It marked the first time since 1958 that the chairman and CEO roles had been untethered at GM.

At the time, GM directors believed no single executive could handle both jobs because of the automaker's challenges and the current economic climate.