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 coupIn April 1992, in a move that rocked Detroit and sent tremors through most of corporate America, GM directors announced that Smale would replace Chairman and CEO Robert Stempel as chair of the automaker's powerful executive committee, with responsibility for setting priorities and goals.At the same time, two of Stempel's closest allies, GM President and COO Lloyd Reuss and Executive Vice President F. Alan Smith were demoted and booted off the board. GM's CFO Robert O'Connell also was demoted and reassigned to GMAC.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.But by the fall, the automaker's turnaround still was not progressing fast enough and Stempel was ousted in October 1992, along with Reuss and other senior executives in a major boardroom coup.Smale officially took over as chairman at GM's next board meeting in early November 1992.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. The automaker -- battered by a recession, the first Gulf War and steady market share losses -- lost more than $17 billion in North America from 1990 to 1993.

Former GM chairman John Smale dies at 84

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