www.politico.com/news/stories/0309/20625.html
The White House confirms Wagoner is leaving at the government's behest. Photo: AP 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 Barack 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. General Motors issued a vague statement Sunday night that did not officially confirm Wagoner's departure. "We are anticipating an announcement soon from the Administration regarding the restructuring of the US auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement," the company said. The surprise announcement about the classically iconic American corporation is perhaps the most vivid sign yet of the tectonic change in the relationship between business and government in this era of subsidies and bailouts. Wagoner has been CEO for 8 years and at GM for more than 30. It is not yet clear who would replace him, or what role the administration would play in that process. Industry sources had said the White House planned very tough medicine in Monday's announcement, which turned out to be an understatement. The measures to be imposed by the government will have a dramatic effect on workers, unions, suppliers, bondholders, shareholders, retirees and the communities where plants are located, the sources said. GM and Chrysler first requested billions in federal aid in November, warning that they could run out of cash in a matter of months if they didn't receive it.
Earlier this month, Obama agreed to loan $5 billion to American auto parts manufacturers to help them weather the steep drop in new vehicle orders and the financial uncertainty at the Big Three. Obama and his aides may have honed in on Wagoner for two reasons. First, his company is asking for the most in total federal aid: $26 billion, a figure administration officials fear could grow even larger. Second, the GM chief was tied more directly to the ill-fated decisions that that brought much of the American auto industry to the brink of collapse. Wagoner joined GM in 1977, has had a senior role in GM management since 1992, and became CEO of the company in 2000. He is considered responsible for increasing GM's focus on trucks and SUVs--at the expense of the hybrids and fuel efficient cars that have become more popular in the last couple of years.
Bull6865 Party: NA Reply #7 Date: Mar 29, 2009 - 5:41 PM EST Obama is clearly unaffaid to use government as a tool to increase his power. this has very significant implications for the fence straddlers who supported the US version of Robert MUGABE.
afkbrad Party: NA Reply #8 Date: Mar 29, 2009 - 5:41 PM EST Screw socialism, Obama wants to skip that and move right into Communism. Since when do politicians decide what's best for private business?
joe tumeroll Party: NA Reply #9 Date: Mar 29, 2009 - 5:41 PM EST Barack Chavez makes his first serious takeover move. Hand pick the next CEO for a nationalized General Motors. I sure hope all of his tiny minions enjoy working for minimum wage as government slaves.
LouisianaMan08 Party: Independent Reply #10 Date: Mar 29, 2009 - 5:41 PM EST Holy CRAPP, someone has to tell this idiot to STOP! Self employed tax paying American working hard for those who don't want to.
Snowman54 Party: NA Reply #11 Date: Mar 29, 2009 - 5:42 PM EST This is the price of treating with the Obama government. Waggoner was a recipient of 50 years of bad negotiation with the UAW.
TellinItLikeItIs Party: Democrat Reply #13 Date: Mar 29, 2009 - 5:43 PM EST Terrific! Now maybe the Administration will ask several dozen Banking and Wall Street executives to resign, since their greed and complacency created the worst economic mess since the 1930s.
CrzyCnuk Party: N/A Reply #16 Date: Mar 29, 2009 - 5:43 PM EST Do you Really think drilling is a good thing. Your country could still be Tops, if you guys put your resources to get away from finite energy sources.
DAMNMAD Party: Conservative Reply #17 Date: Mar 29, 2009 - 5:43 PM EST Communism at it finest OR how a former black community organizer from the southside of Chicago got the best of capitalism.
votebam777 Party: Libertarian Reply #18 Date: Mar 29, 2009 - 5:43 PM EST this is disgusting. since when has the government ever had the right or even the privilege to ask anyone in the private sector stand down? auto industry- check financial industry- check which one's next? Lenin, Stalin and Marx are holding hands and singing songs of joy in hell right now.
Trajan Party: Republican Reply #19 Date: Mar 29, 2009 - 5:43 PM EST Our new President, AKA: Lord High Executioner! Where does Mr Lord High Executioner derive the power to fire CEOs of private companies? How many more Constitutional outrages will this country tolerate from our far-left government?
AUh2064 Party: Conservative Reply #20 Date: Mar 29, 2009 - 5:44 PM EST So Obama runs the auto industry now, eh? It's funny how the same people who griped about Bush's expansion of executive powers don't have any complaints about Obama overstepping his Constitutional authority. I guess it's only an abuse of power if it's Republican president doing it.
Read all 1556 comments in our forum Reply To Thread Title: GM CEO resigns at Obamas behest Message: (9000 chars max) Signature: (200 chars max) Preview (popup window) YOU NEED TO LOG IN TO USE THIS SYSTEM!
|
http://csua.com/feed/