General Motors Chief Rick Wagoner Said to Step Down

[chefdennis]

What you bet that Bankrupcy is next!?!? They should have been let to go BK from the beginning.....

General Motors Chief Rick Wagoner Said to Step Down (Update1)


By Doron Levin and Jeff Green
Last Updated: March 29, 2009 17:00 EDT

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1BaGmyUoHgA&refer=home

March 29 (Bloomberg) -- General Motors Corp. Chief Executive Officer Rick Wagoner will step down after more than eight years running the largest U.S. automaker, people familiar with the situation said.

The people, who asked not to be named because the announcement hasn’t been made, didn’t give a reason why Wagoner, 56, is leaving the job. Wagoner said March 19 that he didn’t plan to resign.

The departure of Wagoner comes as President Barack Obama prepares an address tomorrow morning on his plans for the future of the U.S. auto industry. GM is surviving on $13.4 billion in U.S. loans and is asking for as much as $16.6 billion in additional aid to survive.

Wagoner, who has been lampooned in Saturday Night Live skits and vilified for his central role in the auto-industry collapse, said March 19 that he hadn’t been asked by the government or his own board to resign and his plan is to finish the restructuring.

“I do it because it’s important and I feel like I have a responsibility to do it,” Wagoner said. “I plan to stay here until we get things well in shape and on track and beyond that, we’ll see.”

To contact the reporters on this story: Doron Levin in Southfield, Michigan, at [email protected]; Jeff Green in Southfield, Michigan at [email protected]

 

[MentalGiant]

If they file BK, will they still be obligated to pay the bail out back?

 

[chefdennis]

LOL, well you can't file on taxes they say you owe the fed or state...so heck I don't know, but if they do file BK, they will still need more gov cash, so chances are they will be made to pay it all back....

I'll bet that this deal with Wagner is because GM isn't going to be able to give the gov their plan to restructure and he is just saying "screw it, its your problem now......"

 

[chefdennis]

Politico sayes barry forced Wagner out:

GM CEO resigns at Obama's behest
By MIKE ALLEN & JOSH GERSTEIN | 3/29/09 6:55 PM EDT

GM CEO resigns at Obama's behest - Mike Allen and Josh Gerstein - POLITICO.com

The White House confirms Wagoner is leaving at the government's behest.

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

On Monday, President Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler. The plan is based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.

The White House confirmed Wagoner was leaving at the government's behest after The Associated Press reported his immediate departure, without giving a reason......

You can finish the article at the link above.

 

[greg334]

This is really bad on one regards, the WH is dictating to the company what their plans are for the company and the industry. Their involvement will not 'save' the company, only a consumer willing to buy will do that. It amazes me that yesterday I had sitting in my driveway a Honda Clarity a fuel cell powered car which is being marketed in California but GM may not make the 2010 date with the Volt.

This was really done because Wagner could not get the bond holders to make concessions as demanded by the WH. The Union made a few (not enough as far as I am concern) and so did the suppliers. The state is going to give them some really great tax breaks and so far the feds have in the 'stimulus package'.

The really funny thing is that this was a rumor this morning at breakfast, interesting that it is an 'unnamed' source when many of us know who it was who told the AP in the first place, GM's head of PR.

Screw the stock holders, we don't need no stinkn' stock holders.

 

[chefdennis]

You are absolutely right Greg. The government has no right to dicate to this or any company. This is just one more step closer to the nationalization of industry and socialism..........

Wagner is just barrys scapgoat, yeap he couldn't get the bondholders to lessen their grip, and the UAW is basically screwing the employees buy not bargining on good faith, they still think this is their dads union....so when Wagner couldn't pull the restructure off, barry sayes, dump him or no cash...he makes it look like he is doing something to make a difference in actuality, they are simply putting off the end, that is going to come, and all of this bailout money will have been dumped and nothing gotten back. GM will file BK before the yr is over....

Until the people trust the government and the auto industry again, the economy recovers and people start spending again, the auto industry are grapes turning into raisins on the vine....

 

[inkasnana]

Companies are losing money because people aren't spending, because people have no jobs, because companies have sent all the jobs overseas, and now they are losing money because people aren't spending, because people have no jobs, because companies have sent all the jobs overseas.. and round and round and round.

Stop the merry-go-round, it's time to get off. Bring the jobs back from overseas. Put people back to work. Increase their income so they can increase their spending and companies will stop losing money. Eye-yi-yi.. it's elementary!

(Ok, don't bash me, I'm no economics major. That just seems like a plausible solution to me. )

 

[greg334]

Companies are losing money because people aren't spending, because people have no jobs, because companies have sent all the jobs overseas, and now they are losing money because people aren't spending, because people have no jobs, because companies have sent all the jobs overseas.. and round and round and round.

Not really... the problem is with the auto companies not having a product to sell in the first place and then having a dealer franchise system that literally sucks. When there was money, sales were fading fast, market share was declining and the writing was on the wall.

If they, GM, Ford and Chrysler really want to solve these problems, they have to get it together for the home market and do a few things;

Bring to the public their real problems that can be solved, one is harmonizing the regulations for emissions and safety with the EU and Japan and reducing engineering costs. Emission regulations is a nightmare here and can be solved by getting on board with other countries. But again CARB and the states will have to be told the EPA is the law of the land.

Bring technology to the market that sell in other places - Ford has its whoopy do car computer but they fell short with it in many ways but Fiat of all companies used the same concepts and software to bring to the consumer ways to track driving habits as one example.

Ford refuses to bring the fiesta to the US shores in the diesel version simply because they say they won't sell enough of the cars to justify the cost but their direct competitor in Europe (VW) solved that problem by selling engines and transmissions to their competitors, why not here? By the way, Ford is building the Fiesta in Mexico.

The only way you can bring jobs back from overseas is lower taxes or just change the tax system to begin with. But again many think that Canada is part of the US and a CAW worker is the same as a UAW worker.

 

[chefdennis]

Now barry is telling Chrysler that they have 30 days to get the deal done with Fiat, gee i wonder if fiat holds all the bargining power there!?!?

This along with GM & Wagner are nothing more then the further nationalization of industry and more government control...and the foreign markets love what barry s doing, they all fell like a rock this morning ....the G-20 is going to hand him his butt....then he is going to take his story to the "people of europe" in a seris of press conferences and appearances, like he did in germany....him and his 500 person entourage..........speaking of the 500 people that are traveling with him 1 of them is just to hande barry's blackberry and dial the numbers for him.....

 

[OntarioVanMan]

Something stinks in this Wagoneer deal...I am smelling a set-up for the benefit of the taxpayers.

He was only asked to resign...he did not have to go...only board of directors could force him out or outright fire him.
If I were a betting guy theres a pot of gold for Wagoneer that'll show up at a later date.

 

[greg334]

I am smelling a set-up for the benefit of the taxpayers.

You are joking, for the benefit of the tax payers? OVM you been on another planet for a while?

The tax payers are getting screwed with all these bailouts, there is no benefit for any one of us by having the government step in and run a company. If they can do this with GM then they will do it with any company that needs assistance. Tell you a better example is KMart on how the court said screw the stock holders, we are forming a new company - I see this for GM and Chrysler in the future.

One thing that allows them to do these things is a lot of people are too stupid (Yes harsh word for a reason) to understand what is really going on. Turbo Tim wants powers that equal the president's in many aspects, taking over companies that may appear to have a negative effect on the market - HOW INSANE.

This give them the power to take over any company that may stand in their way, it is like FDR and the fight to take over private utilities - with this power, he would have ruined the country by 1950 and nationalized most of the industries.

 

[OntarioVanMan]

You are joking, for the benefit of the tax payers? OVM you been on another planet for a while?

The tax payers are getting screwed with all these bailouts, there is no benefit for any one of us by having the government step in and run a company. If they can do this with GM then they will do it with any company that needs assistance. Tell you a better example is KMart on how the court said screw the stock holders, we are forming a new company - I see this for GM and Chrysler in the future.

One thing that allows them to do these things is a lot of people are too stupid (Yes harsh word for a reason) to understand what is really going on. Turbo Tim wants powers that equal the president's in many aspects, taking over companies that may appear to have a negative effect on the market - HOW INSANE.

This give them the power to take over any company that may stand in their way, it is like FDR and the fight to take over private utilities - with this power, he would have ruined the country by 1950 and nationalized most of the industries.

ummm....Pluto??

I was being sarcastic...I think Obama thinks it creates transparency...that he preaches about...like hey we have your best interests taken care of...

 

[chefdennis]

OVM, I too thought you had fallen off the edge of your sprinter seat ......yes the Transparency thing is what barry is looking at, doing something is better then nothing and while I do believe Wagner should have been gone 2 yrs ago, it still isn't barry's or the governments place to dicate it.....

And yes just deal with giving Turbo Tax Timmy all of this power to close companies with no "Congressional oversight".....hell even with "Congressional oversight" it still wrong....

We are heading down a very slippery slope here, when the government has the power to dicate who can run what company and what companies need to be closed....its not the governments decisions to make.....

And no the "bailout money" doesn't give them the government the right to dicate, the government sayes these are LOANS to be repaid, 2 wrongs done make a right....When a company takes a loan from a bank, the bank doesn't tell them who can run the company..yea they might make it a requirement that the boss be fired, but the final decision is up to the Board of Directors, not the bank.... this is no different...

There is no need to get ready for socialism, while forms of it have been here for yrs, the efforts are now being doubled and tripled and the wipe to nationalization of industry, banking and the health systems, and upbring of our kids is well on the way......

 

[greg334]

This has makings of Fascism.

 

[layoutshooter]

Government take over of the economy was and is the plan. The goal was an economy run by the government and for the government. Many say I am scary and ranting but it is 100% about control, rule and oppression. Barry and his ilk want to and will take every step needed to do away with the Republic. Just wait, as England nationalisd thier auto industry, so will we and all public utilities and banks and medicine and anything else they can get thier greedy paws on. You will be dictated to. Everything will be a monopoly, run by the government with only thier best interest in mind.
I know, I am ranting, this has NEVER happened ANYWHERE in the world before!! It could never happen here, or could it? Layoutshooter

 

[greg334]

From Obama's auto speech;

Obama said he is committed to the survival of an auto industry — on terms that will allow it to compete internationally - from the AP

Sure they will survive in the international market but how about their home market? and what about Honda, toyota and other American made vehicles?

"But we also cannot continue to excuse poor decisions,"

Sorry Mr obama this is scary, so shouldn't we say this about the president and congress?

"And we cannot make the survival of our auto industry dependent on an unending flow of tax dollars."

When should we cut off other industries? If we apply this to other bailouts, maybe we should have not dumped more money into the banks.

"Let me be clear: the United States government has no interest or intention of running GM,"

This may be the few truths, but again Hitler said something like this in 1935 then handed over control of a lot of companies to some of his supporters after he took them over. Goring was one who ended up with a lot of companies and his family made millions....

 

[chefdennis]

But he also gave the people his reassurance that they could buy a new GM product and not have to worry about their warranty even if they file BK, because as of TODAY, those warranties are now backed up by the FEDERAL GOVERNMENT!!!!!

 

[greg334]

That's funny because the press is the one who started the idea that a company goes out of business and no one will fix the car.

The entire parts system is so large that they have so many parts in warehouses that most of the cars today would be taken care of for a long long time.

Beside, GM has pushed the lease too much so most of the 'buyers' are not really owners.

I am listening to the analysis of the speech, if GM files bankruptcy that the courts can get involved, the UAW will be out in the cold. They are mentioning that the union contracts will be voided and they will force the plants to be non-union to save money.

 

[chefdennis]

Yeap if they filed BK, the ciurts would deal the unions out as they currently are. They would be allowed back, but at a seriously smaller roll with alot less power. The government made sure that the UAW was the only union that the auto companies could deal with, and they won't let them fall too far, but again, barry would have to limit them in such a way as not to kill them, so he can continue his farce of "transparency".....

The government should have never gotten involved to begin with, a loan, yes but nothing beyond that and if that wouldn't have worked, let them file BK, re-organize and comeback.....its what is going to happen and we will have just put it off and spent billions in the mean time.....

 

[greg334]

We're hearing that the UAW and Teamsters will be screwed and they will not be allowed to organize in some plants which is fine with me. The pensions will be in the tax payer's hands which means that we will pay any which way but as far as I am concern, they can lose it all because the workers didn't do a thing to save the company in the first place by getting rid of the unions.