GM CEO resigns at Obama's behest

[edhopper]

http://www.politico.com/news/stories/0309/20625.html

"The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said."


Now we're getting somewhere!

[bluestateguy]

1. You take our money, you do business our way

nt

[saltpoint]

2. This is one of those thick-ink headline stories.

A big deal.

[Fading Captain]

3. what the fuck? Why are you cheering this?

NM

[Deja Q]

7. NM = 'never mind'? Why not cheer it?

That's not to say I am cheering, but a reason - one way or the other - would be nice.

[Pirate Smile]

10. Why would it be better for him to stay?

[spoony]

12. Because, for one thing, there's no replacement on tap

in whom anyone could/should place their trust. Maybe it's not a great idea to fire the coach when you don't have a better one lined up.

[Pirate Smile]

14. Maybe we find out the coaches name tomorrow - or it gets leaked tonight.

Obama prepares to unveil his auto rescue plans Monday.

[spoony]

15. ...He's going to appoint a CEO?

This is getting a little ridiculous. Why isn't anyone talking about trade imbalance or the other actual CAUSES of the problems, instead of just scolding auto companies and seemingly randomly demanding things of them? If news from Detroit is to be believed, the White House is pissed at Wagoner for failing to obtain concessions from the union. Nice huh?

[Pirate Smile]

24. I don't know. Why don't you wait and find out before throwing a fit. I thought getting concessions

from the bondholders was part of the problem. Why wait for facts when you can just blame Obama.

[spoony]

27. Because this is the latest in a string of actions

that show the disparity between how financial institutions are dealt with, versus how manufacturing is dealt with. Blame Obama? When he does something I feel is wrong I will, thanks. If you don't like it, put me on ignore or just keep to the rah-rahs.

[Fading Captain]

30. Because Obama is a Global Capitalist

Dems are whores. Bought and paid for. Just like the Repubs

[cali]

17. He's been a freakin' disaster of a CEO

and the cw is that he should have left years ago.

[saltpoint]

18. I'm sure someone will be tapped to lead. Very likely someone who has already

been notified of the promotion.

I think this public gesture is potentially definitional for Obama and signals his seriousness and commitment to corporations taking a reasonable profit for essential services and good products.

I think the public relations impact of this is huge, and on the positive side of the ledger.

[tammywammy]

23. I think they'll appoint Fritz as CEO, he's the current President and COO n/t

[FarCenter]

25. With the government in charge, why do they need a CEO?

Keep Fritz where his is, running the company.

[tammywammy]

26. Because while they're taking loans, it's not officially a government company n/t

[soccermomforobama]

28. New GM CEO named

Fritz Henderson, GM's chief operating officer, was named CEO to replace Wagoner. He had been widely considered to the leading internal candidate as Wagoner's successor.

GM also announced early this morning that Kent Kresa, chairman emeritus of Northrop Grumman Corp., would be named interim non-executive chairman of the GM board. Kresa first joined the GM board in 2003.

In a statement, Kresa said:

"The board has recognized for some time that the company's restructuring will likely cause a significant change in the stockholders of the Company and create the need for new directors with additional skills and experience.

"The Board intends to work to nominate a slate of directors for the next annual meeting that will include a majority of new directors taking into account the addition of new directors, retirement, and decisions by individual directors not to stand for re-election, although the specific individuals who will be nominated or choose not to run or leave the board are not yet known."


http://www.autonews.com/apps/pbcs.dll/article?AID=/20090329/ANA02/903299989/1197 (subscription website)

[Fading Captain]

29. Good Lord, is your default position that CEOs should be fired by the President?

Use your fucking head.

[Pale Blue Dot]

4. That's perfectly consistent.

He made all of the bad bank CEOs resign, too.

[FrenchieCat]

6. He had a meeting with them.....and now they understand that they may be next.

Guess you "forgot" that Obama met with Wagoner about two weeks ago. :shrug:

http://www.autonews.com/article/20090312/ANA02/903129964/1128

Appears that there are consequences when you meet with President Obama,
although they may not be instantaneous!

[spoony]

13. Believe it when I see it.

I don't read tea leaves through the ribbons of my pom poms, so I'm going to actually need a reason to think the President will, at any point, treat the golden boys like he's treated GM.

[FrenchieCat]

21. Here's a roadmap.....

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8302441&mesg_id=8302441

[Pale Blue Dot]

16. Ah.. I must have missed when he tenured his resignation

before, and as a condition of, any bailout money. My bad!

[mix]

5. i like the message this sends n/t

[Deja Q]

8. Wagoner wrecked his company; is he going to retire nicely?

Need more info.

[Fading Captain]

31. Americans who buy foreign also wrecked the Big 3

Don't get too smug, DU.

[saltpoint]

9. Very early in his presidency, Barack Obama is suggesting that the

Corporation needs to be mindful of its role in service as opposed to how it has too often behaved in the past.

"We are a private entity and we will not be monitored or regulated!" says the Corporation.

"Everyone in your building drives there on public roads and you have asked for bail-out money from taxpayers who now have a right to see how their money will be spent." says the new president.

This is a landmark moment in government. A major new message and a bold new headline.

Good for President Obama.

[Oregone]

11. If the government wants to call the shots, buy the fucking company already

Its becoming a dog and pony show.

[saltpoint]

19. For you Detroit folks and others as well, here is the Free Press'

coverage:

http://freep.com/apps/pbcs.dll/frontpage

[Wapsie B]

20. Oh boy, I can almost hear the rwingers talking about a socialist conspiracy now.

[Fading Captain]

32. Yep. This is stupid.

Stupid fucking move, here.

[saltpoint]

22. Change is always difficult. Changing big things is a bigger matter

than changing little things.

At lunch tomorrow, businesswomen and businessmen will exchange comments on immediate, local issues and by the time they're done with their salad, Obama and GM will be the hot topic of discussion.

In this alone, this headline is a game-changer.

[Blue_Tires]

33. regardless, I believe Wagoner was on his way out soon...

I am a little surprised that Lutz is staying (although he is 70-something, iirc, so he will probably retire this year)...

[Statistical]

34. Wagoner should go.

GM problems are larger, deeper, and have existed longer than this economic crisis. The credit meltdown was just the straw that broke camels back.

In last decade Wagoner leadership has enabled GM to fail in virtually any metric you can use.

Total Revenue - declined
Total Profit/Loss - declined (lost money last 7 of 8 years)
Total Vehicles Delivered - declined
Shareholder Value - declined 98% (and likely will decline a full 100%)
Profit Margin per Vehicle - declined
Gross Margin Margin after incentives - declined (0% isn't free)
Marketshare - declined 28% vs a mere 19%

Ford is suffering from the economic slowdown but Ford & GM are not even in the same league in terms of distressed companies.
If Ford just had an abnormal biopsy GM is a 10 year Category 4 Terminal Cancer Patient.

During last decade Ford PAID DOWN debt. Consolidated model lines. Closed and Consolidated factories.
GM expanded debt 80%. They were borrowing money to stay alive. If we had a credit freeze in 2000 instead of 2008 GM would have failed then.

Wagoner is a company man. He is emotionally tied to GM. He does not have the ability to make hard calls (like eliminating/consolidating over half of GM brands, closing about 1/3 of dealerships, eliminating unprofitable models, etc).

Now the next guy might not be able to save GM. GM has been well on the road to bankruptcy for a decade. It may not be save-able by anyone but it certainly won't be saved by the guy who put it there.