HUGHES ELECTRONICS PLUGS IN NEW CEO.

Byline: Michael White Associated Press

General Motors Corp. turned to a familiar face in naming Michael T. Smith chairman and chief executive of Hughes Electronics Corp. as the GM subsidiary pares down to focus on the lucrative and intensively competitive satellite communications business.

Smith - the brother of GM chairman and CEO John Smith - became part of the Hughes management team in 1986 and helped oversee the company's successful transformation from Cold War defense contractor to a leader in satellite-based communications, including the DirecTV broadcasting service.

Smith succeeds C. Michael Armstrong, who resigned to become chairman and chief executive of AT&T Corp.

``We're not going to miss a beat in completing our restructuring transactions,'' Smith, 54, said Monday.

``In the longer term, we expect to continue growing Hughes' telecommunications and space business at a projected rate of about 20 percent a year for the next five years.''

Hughes also named its vice chairman, Charles H. Noski, as president. Noski, 45, was previously vice chairman of Hughes Electronics until recently joining United Technologies Corp. as executive vice president and chief financial officer.

Steven D. Dorfman was named vice chairman of Hughes. Dorfman, 62, was executive vice president and chairman of the Hughes Telecommunications and Space Co. and will continue to have oversight of satellite-making operations.

``It seems to me what you have now is a team of young people, who get along well personally and have a peer vision,'' said Wolfgang Demisch, an analyst with BT Securities in New York.

``I think that vision goes forward into a revolution in communications. They've been present in the ground floor of that revolution and helped make it possible. They are free to pursue that as aggressively as they can,'' he said.

Smith said his priorities include making the company more competitive, particularly in pricing DirecTV, whose lead in the direct broadcasting field has been undercut by competitors. DirecTV, launched in 1994, has 2.9 million subscribers, or about 55 percent of the market. During 1996, the service generated about $728 million, or 18 percent of the $4.1 billion taken in by Hughes space and communications unit. DirecTV's biggest competitor, Primestar Partners, has about 1.8 million subscribers.

``We have not been as competitive as we need to be in terms of making our offering to the consumer simple,'' he said. ``Obviously there's got to be more value to the consumer. I don't think there's any big mystery to it.''

CAPTION(S):

5 Photos

Photo: (1--Color) MOVING UP

Michael T. Smith

Chairman and chief executive of Hughes Electronics Corp. Joined management there in 1986.

(2--Color) MOVING UP

Charles H. Noski

New president at Hughes. Was previously vice chairman there until United Technologies Corp.

(3--Color) MOVING UP

Steven D. Dorfman

Hughes vice chairman. Was chairman of the Hughes Telecommunications and Space Co.

(4--Color) MOVING UP

Harry J. Pearce

GM Vice Chairman, will have oversight for the parent company.

(5) Michael T. Smith speaks in front of a satellite dish in Los Angeles on Monday after being named to head Hughes Electronics.

Associated Press