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GM CEO forced out as U.S. readies autos aid...

Zim Hosein

Zim Hosein

Super Moderator | Elite Member
Super Moderator
WASHINGTON (Reuters) - General Motors Corp Chief Executive Rick Wagoner resigned under pressure from the Obama administration on Sunday as the government prepared to announce a second bailout for the company and its smaller rival Chrysler LLC.

Wagoner, a career GM executive and CEO since 2000, is stepping down as the top U.S. automaker struggles with a recession-fueled sales implosion that has pushed GM and many of its suppliers and dealers to the brink of failure.

"For them to change captains right in the middle of the rapids is not something GM would have done, but now (President Barack) Obama or (Treasury Secretary Timothy) Geithner can say, we've asked them to make the ultimate sacrifice," said Aaron Bragman, an analyst with IHS Global Insight.

University of Maryland economist Peter Morici, a one-time critic of Wagoner who had called for him to resign but now believes he had "started to get it," said the administration has a "PR problem" regarding unpopular corporate bailouts.

"They are bailing out just about anybody that shows up and says they need cash. The public has grown weary of it and instead of throwing a banker to the wolves they have decided to throw Wagoner to the wolves," Morici said.

GM would not confirm the decision. A White House official, who spoke anonymously because the resignation had not been announced, said it was done at the request of the administration.

NO WORD ON SUCCESSOR

There was no word from the government or others with knowledge of the situation on the timing of Wagoner's departure or who would replace him.

Fritz Henderson, GM's chief operating officer, is the No. 2 executive at the automaker and widely considered to the leading internal candidate as Wagoner's successor.

Obama last week cited mismanagement "over the years" for some of the auto industry's severe financial problems, a point that stung Wagoner since his counterparts at Ford Motor Co, Alan Mulally, and Chrysler, Bob Nardelli, are relative newcomers brought in from outside the industry.

GM has lost about $82 billion since 2005 when its problems began to mount in the U.S. market. GM has lost about 95 percent of its value since Wagoner took over as CEO.

Wagoner was in Washington on Friday to meet with the White House-appointed task force on auto restructuring. Obama is expected to announce that panel's recommendations on Monday.

Together, GM and Chrysler have asked for another $22 billion in government loans to ride out the weakest market for new cars in almost 30 years. Ford, which is also struggling, is not seeking federal help.

Obama said earlier Sunday that GM and Chrysler have not done enough to save themselves since receiving a $17.4 billion bailout in December.

"They're not there yet," Obama said in a taped interview on the CBS-TV news program "Face The Nation."
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GM CEO forced out as U.S. readies autos aid

Good or bad for stockholders of GM common stock? 😕
 
Originally posted by: iamwiz82
Wrong forum 😉
Click to expand...

I'm posting this thread as a "common stock holder" question iamwiz82; we don't have a "stock" sub-forum 😉
 
It seems the current administration is pointing a lot of fingers every which way except at themselves
 
Originally posted by: JS80
Originally posted by: Lothar
How moronic.
Rick Wagoner is probably the best CEO of the big 3.
Click to expand...

Yup. Fucking scapegoat for this retarded administration.
Click to expand...

Agreed. What the fuck are they trying to do? Ruin this country?

"We are fast approaching the stage of the ultimate inversion: The stage where the government is free to do anything it pleases, while the citizens may act only by permission ? which is the stage of the darkest periods of human history, the stage of rule by brute force."
 
Originally posted by: Zim Hosein
Originally posted by: iamwiz82
Wrong forum 😉
Click to expand...

I'm posting this thread as a "common stock holder" question iamwiz82; we don't have a "stock" sub-forum 😉
Click to expand...

You are also posting this here when there is one going in P&N. 😉
 
Originally posted by: WingZero94
Originally posted by: JS80
Originally posted by: Lothar
How moronic.
Rick Wagoner is probably the best CEO of the big 3.
Click to expand...

Yup. Fucking scapegoat for this retarded administration.
Click to expand...

Agreed. What the fuck are they trying to do? Ruin this country?

"We are fast approaching the stage of the ultimate inversion: The stage where the government is free to do anything it pleases, while the citizens may act only by permission ? which is the stage of the darkest periods of human history, the stage of rule by brute force."
Click to expand...

Agreed. Obama is gonna destroy America.
 
Originally posted by: Riceninja
Originally posted by: WingZero94
Originally posted by: JS80
Originally posted by: Lothar
How moronic.
Rick Wagoner is probably the best CEO of the big 3.
Click to expand...

Yup. Fucking scapegoat for this retarded administration.
Click to expand...

Agreed. What the fuck are they trying to do? Ruin this country?

"We are fast approaching the stage of the ultimate inversion: The stage where the government is free to do anything it pleases, while the citizens may act only by permission ? which is the stage of the darkest periods of human history, the stage of rule by brute force."
Click to expand...

Agreed. Obama is gonna destroy America.
Click to expand...

This is why the second amendment exists.
 
I think this could go either way. Rick is the one that got the company into this mess with his "Build SUV's till we die" philosophy. I don't think he knows how to run GM any other way. Some fresh blood might actually help.
 
Originally posted by: masteryoda34
Originally posted by: Riceninja
Originally posted by: WingZero94
Originally posted by: JS80
Originally posted by: Lothar
How moronic.
Rick Wagoner is probably the best CEO of the big 3.
Click to expand...

Yup. Fucking scapegoat for this retarded administration.
Click to expand...

Agreed. What the fuck are they trying to do? Ruin this country?

"We are fast approaching the stage of the ultimate inversion: The stage where the government is free to do anything it pleases, while the citizens may act only by permission ? which is the stage of the darkest periods of human history, the stage of rule by brute force."
Click to expand...

Agreed. Obama is gonna destroy America.
Click to expand...

This is why the second amendment exists.
Click to expand...

I hope you've stocked up cuz hes gonna take away all our guns.
 
Originally posted by: TehMac
It seems the current administration is pointing a lot of fingers every which way except at themselves
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hmmm, seeing as how none of them were involved with the collapse, I can't imagine any other direction to point the finger.

Honeslty, disagree with the way it's being handled, but so many of you on here are so damn brainwashed as to actually believe that they caused the collapse.

it's insanity. were you all they type that thought like this:

2003: "WMD? FUCK NO! Kill that Bastard Saddam!"

late 2003: "Saddam has teh butt sex with Bin Laden! Get 'em!!111!!"

2004 and on: "No WMD? Of course not! this was all about terrism! this was always about terrism! ...uh, and freedom!!!"

seriously, you guys have such paper-thin capacities for thought I'm appalled that you're allowed to vote sometimes.
 
Originally posted by: zinfamous
Originally posted by: TehMac
It seems the current administration is pointing a lot of fingers every which way except at themselves
Click to expand...

hmmm, seeing as how none of them were involved with the collapse, I can't imagine any other direction to point the finger.

Honeslty, disagree with the way it's being handled, but so many of you on here are so damn brainwashed as to actually believe that they caused the collapse.

it's insanity. were you all they type that thought like this:

2003: "WMD? FUCK NO! Kill that Bastard Saddam!"

late 2003: "Saddam has teh butt sex with Bin Laden! Get 'em!!111!!"

2004 and on: "No WMD? Of course not! this was all about terrism! this was always about terrism! ...uh, and freedom!!!"

seriously, you guys have such paper-thin capacities for thought I'm appalled that you're allowed to vote sometimes.
Click to expand...

I'm with you here.
 
Originally posted by: Lothar
How moronic.
Rick Wagoner is probably the best CEO of the big 3.
Click to expand...

Even if he's the best of the 3, how is it not his fault that his company is failing? The buck's gotta stop somewhere.

Originally posted by: WingZero94
...
"We are fast approaching the stage of the ultimate inversion: The stage where the government is free to do anything it pleases, while the citizens may act only by permission ? which is the stage of the darkest periods of human history, the stage of rule by brute force."
Click to expand...

This doesn't even apply. The government only gets to tell GM what to do because GM wants the government's money. It's only because Wagoner (and his predecessors) made poor decisions that they're in this position now. Why would you want him in charge of your taxpayer money?
 
Originally posted by: TehMac
It seems the current administration is pointing a lot of fingers every which way except at themselves
Click to expand...

lol, cause all of this is Obama's fault right?
 
Originally posted by: Zim Hosein

NO WORD ON SUCCESSOR
Click to expand...

"Fritz Henderson, GM's president and chief operating officer, became the new CEO, a Treasury Department source said. Board member Kent Kresa, the former chairman and CEO of defense contractor Northrop Grumman, will be interim chairman of the GM board.

One official said a majority of the GM board was expected to step down."

According to CNBC.
 
Originally posted by: TehMac
It seems the current administration is pointing a lot of fingers every which way except at themselves
Click to expand...
Yes, its those evil unions that cause all this!!!1
 
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