GM CEO Wagoner to Step Down

GM enthusiasts have been in a state of panic lately, attacking anything representing significant change with knowledge the auto task force announcement tomorrow would bring an end to the automaker they once knew.

Looks like the dominos have already begun to fall.
.

 

Uh-oh, I bet they're about to go Tango Uniform. He bailed while he could still get a few million

 

From the Yahoo News article - "The automaker recently promoted Fritz Henderson, its former chief financial officer, to become president and chief operating officer. Many in the company thought he would eventually succeed Wagoner."

Yep, that's the key to solving GM's management issues....more of the same. CEO's experienced in juggling numbers.

 

Some news reports are now saying that the Obama administration is forcing him out.

GM CEO forced out as U.S. readies more auto aid | Reuters

I was listening to NPR this afternoon, and they were also reporting that the administration is behind this.

 

It sounds like it is no secret. The stories I have read say right up front that he is leaving 'at the request of the White House'.
No real surprise, if GM is going to become viable, they need a lot of shaking up.

 

GM might benefit from a lot of shaking up. But is this any more than a quid pro quo to get the money?

 

IMO Fritz is just as worthless. CFO as your company circles the drain is just as bad as CEO. It would be illegal to pay them what they are worth due to the minimum wage laws in this country. Nothing short of a clean sweep of the executive offices is going to save GM.

 

I forget where I read it, but they made it sound like Fritz would be put in temporarily until the total restructuring plan was fleshed out. I do totally agree though, the top management needs to go, all of them. GM needs fresh blood, fresh ideas, and the old guard gone, every last one.

 

A day away from April 1st.

 

Stocks opened lower this morning with all the major indexes falling more than 2.5%. The Dow Jones industrial average had lost more than 225 points in the first hour of trading, and GM stock fell by 25% amid fears the automakers could be forced into bankruptcy.

Over the weekend, the Obama administration, in one of its boldest moves into a company's corporate affairs, prepared to put both GM and Chrysler on a short leash to retool their operations.

The administration will announce today that it has rejected GM and Chrysler's plea for an additional $22 billion in funding. Instead, it pushed Rick Wagoner out as GM chairman and chief executive, giving the company 60 days to restructure, while giving Chrysler 30 days to work out a merger with Italian automaker Fiat.

Obama to GM, Chrysler: Try, try again - Los Angeles Times

 

The Obama administration offers up carrots galore to follow their lead, but a stick is not too far behind for the stubborn. So far, they have been pretty clear in their aims, and have followed through on promises. I think GM will be making a mistake if they try to play a game of chicken, political power of the unions notwithstanding.

 

If you are somehow feeling bad for him, read this:

PAYDAY: GM's Rick Wagoner Drives Away with $20M Retirement - ABC News

 

"Wagner to Step Down"
Long over due if you ask me. GM needs an outsider to rectify the culture.

Obama is putting actions behind his words. I like that in a leader.

 

Um ... no, it is not

 

+1

This shuffling will do nothing