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Former GM CEO Rick Wagoner. Photo © GM Corp
In a statement on GM's web site, the former number one global automaker announced that Rick Wagoner has officially resigned as CEO of General Motors, effective immediately. Replacing him will be former Chief Operating Officer Fritz Henderson.
"On Friday I was in Washington for a meeting with Administration officials," said Wagoner in the official statement. "In the course of that meeting, they requested that I “step aside” as CEO of GM, and so I have."
Wagoner began his career with General Motors back in 1977, ascending to his current position of chairman and CEO in 2000. The embattled executive has taken considerable heat for the current position of the former number one automaker, with his more pronounced critics accusing him of following easy profits in trucks and SUVs while foreign manufacturers gained an advantages in technology, efficiency and quality. Since 2004, General Motors has lost approximately $82 billion dollars, not to mention the number one global automaker title, which Toyota officially inherited this year.
"I ... want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO," said Wagoner. "I deeply appreciate the excellent counsel and commitment of the GM Board and the strong support of our many partners including our terrific dealers, suppliers, and community leaders. I am grateful as well to the union leaders with whom I have had the chance to work closely to implement numerous tough but necessary restructuring agreements."
White House officials say Wagoner is being asked to step down as part of a new government restructuring plan for GM and Chrysler, which is expected to generally fall in favor of automakers with additional funds in exchange for a new set of restructure parameters and specific restructure deadlines. Expect some measure of bondholder debt and retiree health care reform to also be part of the new package, as both manufacturers are still dealing with these uncomfortable loose ends which haven’t met the requirements of the original restructure agreement setup by the Bush administration last year. Bankruptcy is also still a possibility, especially if agreements to reduce bondholder debt fall through.
In a taped interview for the CBS program “Face the Nation”, President Obama was cautiously optimistic about the automakers’ futures, though he indicated government assistance would rely on deep concessions from all parties involved.
“Everybody's going to have to come to the table and say it's important for us to take serious restructuring steps now in order to preserve a brighter future down the road," he said. “They’re not there yet.”
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