GM Compensation Plan a Step to Recovery: Nardelli

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June 30 (Bloomberg) -- Bob Nardelli, former chairman and Chief Executive Officer at Chrysler, talks with Betty Liu about how General Motors is handling victim compensation from delayed recalls related to ignition-switch troubles responsible for accidents and fatalities and how the automaker can move forward from the situation. He speaks on “In The Loop.”

Feinberg is doing this?

They should feel very good.

He has great reputation, high integrity.

It is not surprising he was picked to do this.

The strategy is to get this behind him as fast as he can.

He will be very equitable.

The victim should feel very confident they will be treated fairly and expeditiously to get this part of the issue behind them.

Those with the fun will give up their right to sue gm down the road.

The whole idea of uncapped compensation, how dangerous could that be to gm?

It sets the right tone.

He is setting the right tone that people who are harmed or lost their lives, it is hard to put it down -- a dollar sign on it.

Ken has a history of his ability to do that.

That was the right thing to say.

I think he will be equitable in administrating this and not being cavalier about it.

I think victims will be treated fairly and hopefully they will get this behind them.

We have seen with this internal report on what exactly happened and already, critics have come out and set on an independent report that mary barra is too much of an insider to claim she will be able to turn around the company.

You say?

One of the biggest challenges for mary was to distance herself, after having been there for many years on this issue.

She has done a great job for many years.

She had the talent -- she had the meeting, providing independent review going forward . she has recalled a significant number of cars.

She stopped selling some cars.

This will be a test now for her relationship with the dealers.

It will be impacted based on the revenue and not selling the cars.

She still has to navigate troubled waters going forward.

Today, i think she has done a great job.

She has in your view, but for gm to signal this is a new company, should they not look for a ceo outside of the company?

It is hard to second-guess.

I do not know if they were aware of this situation when they picked her.

Ellis part of the problem.

Part of the problem.

She brings a tremendous amount of knowledge, and it is always hard.

When i went to crisler, they said, bob, you're not a car guy and i said, they got you in trouble.

I really enjoyed my time at crisler.

Time will tell, but i think she is doing all the right things right now.

Picking him was another major strategic move.

As he is going through these claims, what should the company be doing in the meantime?

The big challenge is to get the claims behind her.

My second advice is to get the recall repaired as quickly as possible.

Do not let people drive their cars while they are still in the recall.

She will have to lean heavily for air bags and ignition switches to get them repaired.

In my experience, not everybody will bring their car in and get repaired.

They have to continue to go out there and encourage them to get it done quickly.

This may be over a year-long process doing this.

Stay with me.

The ceo of accelerate, my guest host for the hour.

Make sure to watch the market makers interview with ken feinberg.

That is 8:00 in the morning.

Moving and shaking this hour, mark zuckerberg.

Once again, he has a deal with

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