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BREAKING: GM CEO Wagoner out at Obama's request
by Alex Nunez on Mar 29th 2009 at 6:58PM 
Tom Krisher of the Associated Press reports that General Motors CEO Rick Wagoner will step down from his post immediately, based on information given to him from an unnamed source. The news comes on the eve of President Obama's expected announcement of a deadline for General Motors and Chrysler to finalize their restructuring terms or enter government-backed, pre-packaged Chapter 11 bankruptcy. There's no official confirmation from GM at this time. The only announcement the automaker made today was a brief, two-sentence statement in response to the anticipated Obama announcement, saying that they continue to work with the President's automotive Task Force.
The Detroit Free Press reports that the move was specifically requested by the Obama administration as part of the rescue plan that will be announced tomorrow. Wagoner reportedly agreed, and COO Fritz Henderson would appear to be in line to be the new top guy at the RenCen. No official word on that so far, either.
Get ready a big week of auto news, kids. The NY Auto Show just got a whole lot more interesting, too. Stay tuned.
UPDATE: Official message from Rick Wagoner and GM's announcement of Board restructuring after the jump.
[Source: Associated Press, Freep]
GM Message from Rick Wagoner
On Friday I was in Washington for a meeting with Administration officials. In the course of that meeting, they requested that I "step aside" as CEO of GM, and so I have.
Fritz Henderson is an excellent choice to be the next CEO of GM. Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts. His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM'ers worldwide to succeed. I wish him well, and I stand ready to support him, and interim Non-Executive Chairman Kent Kresa, in every way possible.
I also want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO. 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.
Most important of all I want to express my deepest appreciation to the extraordinary team of GM employees around the world. You have been a tremendous source of inspiration and pride to me, and I will be forever grateful for the courage and commitment you have shown as we have confronted the unprecedented challenges of the past few years. GM is a great company with a storied history. Ignore the doubters because I know it is also a company with a great future.
GM Statement on Officer and Board Announcements
GM is announcing the following changes in the corporate officers and the board of directors:
- Rick Wagoner is stepping down as chairman and CEO, effective immediately. Wagoner, 56, was named president and CEO in 2000, and assumed the role of chairman in 2003.
- Fritz Henderson, GM president and chief operating officer, will serve as CEO. Henderson, 50, was named to his current position in 2008. He was previously vice chairman and chief financial officer.
- Kent Kresa, chairman emeritus, Northrop Grumman Corporation, has been named interim non-executive chairman of the board of directors. Kresa became a GM director in 2003
- GM is awaiting further announcements by the President and the Task Force on Automotive Reconstruction, and we will have additional comments at that time.
"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."
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Reader Comments (Page 1 of 9)
paul 5:22PM (3/29/2009)
First Maximus Lutz now Wagoner? GM is undergoing big changes.
Reply
Tool 5:35PM (3/29/2009)
It's time this douche bag left. He's presided over $80 billion in losses and the (near) demise of this once great company.
This is a symbolic, yet substantive decision that should have been made a long time ago. But like most things at GM, it's too little, too late.
Tool 5:41PM (3/29/2009)
Update: According to Politico, President Obama demanded that Wagoner step down.
http://www.politico.com/news/stories/0309/20625.html
AZZO45b 5:47PM (3/29/2009)
Great... know the Rush & FOX crowd will babble on about "free markets" & our "Socialist/ Communist / Whatever-ist President.
Glad he did this... to pimp the slogan, its CHANGE I can believe in!!! :) :) (seriously)
Don't worry... Rick has his (golden) parachute to brace his fall.
Tohe 5:58PM (3/29/2009)
I would much rather read news about Tesla getting their government baked loan. I think must will agree that you can turn a company upside down in 3 months. This is a noble attempt by the President and his administration, but I'm afraid they will be blame for not standing a change in the first place.
Tohe 6:00PM (3/29/2009)
"think most will agree that you CANNOT turn a company upside down"
Sorry for the typo.
Noidor 6:06PM (3/29/2009)
This is being done as a symbolic move that things will be different and a change of culture will occur.
But what REALLY bothers me is that in banking all the guys who ruined the economy are still in power, and collecting obscene amounts of bonuses. Double standard much?
I don't think that Wagoner was doing a super job, but he definitely made a ton of mistakes...he failed to set a concrete plan for GM many years ago when he stepped in. What's the joke in Detroit? "GM is a pensions company which also happens to make cars" Something along those lines...
jimmy glick 7:38PM (3/29/2009)
Well, here we go!! Good times!!
http://www.youtube.com/watch?v=rAqPMJFaEdY&feature=channel_page
Taglane 7:42PM (3/29/2009)
Wow he's actually out now?
Randy 9:55PM (3/29/2009)
All i can say is "WOW" I really didn't expect that!
Lad 10:17PM (3/29/2009)
In effect GM and Chrysler have been nationalized to save the jobs under control of the UAW. Otherwise, they should have been allowed to fail. I don't like the idea of nationalizing the companies; but, I do think they are too large to fail and that seems to be the reason the government stepped in.
I believe they should be divided along division lines into smaller companies and Ford, even though it has not accepted bailout money,needs to downsize their divisions also.
Closely associated with the auto bailout is the money we are paying to AIG, Citibank, WellsFargo, Bank of America and the so called Wall Street Banks.
Congress and the President must pass new regulatory laws and guidelines to limit the size of companies in the U.S. to prevent companies from ever again damaging the country's economy. And, these companies must be returned to the private sector asap. This country grows great under the profit motive as long as some limits are in place to prevent the deadly sin of greed from taking over.
john 11:25PM (3/30/2009)
who's powerful now?
http://www.autoblog.com/2008/01/02/rick-wagoner-tops-motor-trend-2008-power-list/
Max 5:23PM (3/29/2009)
I guess GM knows they won't make it for the deadline and cut off its own head to apologize.
Reply
inteller 8:20PM (3/29/2009)
Obama made him quit so Nardelli and him wouldn't fight over who will be CEO of the new company when he puts them both through prearranged bankruptcies.
J.Crew 11:56PM (3/29/2009)
The dumbest part is that Nardelli gets to keep his job where he knows nothing about what he is doing. Seriously, Nardelli is useless.
Spiel 10:48AM (3/30/2009)
Nardelli might be clueless about the auto industry, but what does that say about Wagoner, whom has worked for GM since `77 and has taken the largest auto company to the grounds since being CEO in `00. It has been one poor decision after another for GM.
Seriously, bring in someone from GM's European arm to lead, maybe, just maybe, he can influence un-crappy looking designs that might actually sell.
On a silly note, sorry, but I could never see Wagoner as a CEO, he looks like a farmer or a union rep than a CEO of a large corp. Call me silly, but leaders should have some sort of charisma to go along with their impeccable experience and decision making to win-over their employees and shareholders.
Matt 5:25PM (3/29/2009)
Well, it may be the best.
I feel for GM. They, by far, have the best product on the market in many segments...it's just that they are too big.
Reply
Andrew 5:56PM (3/29/2009)
what specific examples can you give of this?
the segments of cars I think about are compact cars, family sedans, luxury, hybrid.
The only standout i can think of the Cadillac CTS, but why buy from a company perpetually on the verge of bankruptcy vs buying from foreign makers those profits are so great that they are essentially guaranteed to be around for the next 5+ years.
With the Malibu, the mileage is best in class, but what about reliability?
http://www.autoblog.com/2009/03/13/gm-recall-affects-277-000-models-with-shifter-problem/
and they don't have a V6 model at all.
headpunter 6:19PM (3/29/2009)
Andrew, BMW and Mercedes are cross sharing stocks and asking for money from the german government so your full of crap
Andrew 8:00PM (3/29/2009)
headpunter, i made no references to german automakers.
I was actually thinking of asian automakers.
No one is disputing that all car makers are suffering. Even toyota has suffered its first loss ever since arriving to the US market.
My question was: what models from GM are better than the rest of the market?
I asked for specific examples, and you jump down my throat with unrelated accusations.
Do you not understand English?
or
Do you lack examples, so you try to attack me and change the subject?