Sunday, December 7, 2008

GM CEO, Rick Wagoner, may be asked to step down

Legislators have been working this weekend to craft legislation that would "bail out" The Detroit 3. It appears that the monies will come from a previously approved 25 billion dollar package that was earmarked for the re-tooling of manufacturing lines, enabling automakers to produce more green/hybrid vehicles. Yesterday we heard the first rumblings of the appointment of a "car Czar" that would be appointed as overseer of this new bailout. Whether or not this would materialize and who would be appointed remains to be seen.

The very latest news is interesting, to say the least. This lame duck session of Congress really wants to control the funds given to the US automakers as evidenced by the use of a car Czar but now some are calling for the removal of GM CEO, Rick Wagoner.

From the Wall Street Journal:

"Now that Congress appears to be moving forward with at least an initial injection of federal money for General Motors Corp. and Chrysler LLC, the two troubled auto makers are under pressure to push ahead with tough measures to change how they do business -- including the possible replacement of GM Chairman and Chief Executive Rick Wagoner.

Sen. Chris Dodd (D., Conn.), a key supporter of aid for Detroit, suggested Sunday that Mr. Wagoner should go as part of any broader bailout package. "I think you've got to consider new leadership," the senator said on CBS's "Face The Nation" talk show. "If you're going to restructure, you've got to bring in a new team to do this," he said. "I think [Mr. Wagoner] has to move on."

Folks, this is really strong medicine for GM to swallow. I applaud Senator Dodd for making this suggestion and I also believe that he is correct. What I cannot understand is the GM Board of Directors, who have stood by and silently watched this once proud company be reduced to rubble. They have remained mute on the sidelines, watching Rick Wagoner steer the company directly into the ground. To be honest, he should have been fired years ago. Making matters worse is the knowledge that Wagoner will not own or shoulder any responsibility for the company's failure. Wagoner says he will not step down and maintains the he needs to remain with the company to help them through this rough patch. Hogwash Rick.

Tell me what you think. Should Rick Wagoner remain CEO and help the ailing company through this transition into a leaner, more efficient corporation or should he step aside to let someone begin with a clean slate? Senator Dodd's suggestion may be ignored after all is said and done and Wagoner may be allowed to skate.

1 comment:

Mberenis said...

There has been an increase of money availability to everyone known as bailout spillover. Due to recession there is increased funding for all types of grants. Even lenders are bending over backwards to bail you out too. Regardless of statistics, there is people getting tons of cheap money for personal use, investments,start businesses, buy homes, pay off debt, and more. Bailout is for YOU