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AP Source: GM CEO Wagoner to step down immediately

AP Source: GM CEO Rick Wagoner to step down on eve of Obama revealing auto plan

Tom Krisher, AP Auto Writer

Sunday March 29, 2009, 5:09 pm EDT

Buzz up! Print Related:General Motors Corporation

DETROIT (AP) -- A person with knowledge of General Motors' plans says Rick Wagoner will step down immediately as chairman and chief executive of the struggling Detroit automaker.

 

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The person asked not to be identified because Wagoner's plans have not been formally announced.

 

The move comes on the eve of President Obama unveiling his plan to reinvigorate the U.S. auto industry. Obama and other administration officials have said they would demand deeper restructuring from General Motors Corp. and Chrysler LLC before they would get any more government loans.

 

Both companies are living on a total of $17.4 billion in federal aid.

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Relating this to Ford, it had to be very disappointing to GM to see Ford obtain new concessions from UAW first and have it ratified, and then see Ford start its reduction of long term debt paying cash instead of using stock. This had to put added presure on Wagoner and make his tenure more tenuous. And all that money GM put into Saturn, Hummer, and to a lesser extent Buick and see it all go down the drain. For that matter, all the money put into the Volt could be money down the drain also. What a tragedy. Ford for about one-third the cost will be building a new electric Focus using Magna technology and I doubt if it will cost $40,000 to consumer and go 60 more miles on charge.

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So, CEO is out to be replaced by, oh, the COO. Wow. "Change" it is a comin'.

 

What else would one expect out of an administration based on style instead of substance than a move that is all style and no substance?

 

I believe Wagoner moved too slowly to restructure the company, as did the BoD. But I believe there are few people better suited to restructuring the company than Wagoner, a 30-year plus veteran with intimate knowledge of the car business and the inner-workings of GM. The Ford/Mulally situation made sense two years ago; it would be suicidal now - bringing in an outsider with zero experience in the company/industry at a time when it faces liquidation or dramatic overhaul.

 

But, in the end, if Wagoner was standing between aid and insolvency, he's doing the right thing by falling on his sword. If it means the survival of GM then Wagoner's departure is worth it.

 

Scott

Edited by waymondospiff
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As posted in the other thread...

From the AP:

AP-APNewsAlert,0038

Officials: US to give GM, Chrysler more money

WASHINGTON (AP) - Officials tell The Associated Press that the

Obama administration is giving General Motors financing for 60 days

to restructure; Chrysler will get up to $6 billion and 30 days to

complete alliance with Italian automaker Fiat.

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This is good for Ford. This executive change and added pressure from POTUS will put a mid-summer deadline on consumers to buy GM/Chrys vehicles, or to do so post-bankruptcy. Ford stock should shoot up nicely tomorrow morning. It will by default become THE American car company.

 

American car companies have, when successful, worked with brash, flamboyant capitalists at the helm. GM and Chrysler now have zero opportunity for that type of leadership. Obama will dump them both at his earliest convenience now.

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GM are kidding themselves, they're not ready for the government's expectations on a viable plan.

Wagoner thought he and GM could glide through on blue sky forecasts and unlimited government support.

 

This is going to be a long ride.

 

 

Meanwhile,

Alan Mulally and Bill Ford have lots of new products coming :play:

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GM are kidding themselves, they're not ready for the government's expectations on a viable plan.

Wagoner thought he and GM could glide through on blue sky forecasts and unlimited government support.

 

This is going to be a long ride.

 

 

Meanwhile,

Alan Mulally and Bill Ford have lots of new products coming :play:

 

The real challenge for Ford will now be the federal government, not Toyota/Honda etc. There will be no clean break from this; Uncle Sam Motors will not now ever be a private company again. What's good for GM, is good for the taxpayer. Next up: large government fleet orders for GM vehicles.

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The real challenge for Ford will now be the federal government, not Toyota/Honda etc. There will be no clean break from this; Uncle Sam Motors will not now ever be a private company again. What's good for GM, is good for the taxpayer. Next up: large government fleet orders for GM vehicles.

 

I was just thinking this too. With so much investment in GM is ford going to get screwed at the end.

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I just wonder what the Administration's plan is to help out suppliers long term that could seriously affect Ford down the road if they went bankrupt.

This is a very good point and one I've been wondering about. This could have serious backlash on Ford.

 

 

I was just thinking this too. With so much investment in GM is ford going to get screwed at the end.

I don't see Obama leaving Ford out in the cold if this should happen. Besides, if you look really hard, you'll see that most school and government purchased vehicles (truck wise) are Fords anyway. Why would he and his admin punish Ford for getting the jump on this downturn?

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