GM CEO Rick Wagoner asked to resign
March 30, 2009 by Matt Brogan
UPDATE: Rick Wagoner has officially stepped aside. Statement below.
Rick Wagoner, CEO of General Motors, has resigned from the top job after an eight-year tenure.
Mr Wagoner came under fire for his stewardship of GM late last year when US lawmakers debated a bailout for the manufacturer.
He has repeatedly said that he intended to stay on, and GM’s board has offered unanimous support for him. But a senior Obama administration official said this morning that Mr Wagoner was asked to step down by the administration.
The manufacturer, which hasn’t posted a profit since 2004, is waiting on approval for a further US$16.6 billion in funding, and is currently surviving on US$13.4 billion in government loans.
Reports say Mr Wagoner has been asked to leave the GM immediately.
We’ll keep you posted on any developments.
Rick Wagoner has given the following statement:
No tags for this post.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.
Hey Caradvice,
I just read on the BBC site that GM has agreed to trim down their brands from 8 to 4. Is this the end of GM Holden??
http://news.bbc.co.uk/2/hi/business/7971202.stm
Just wondering what your sources are telling ya.
And so he should, with a surname of Wagoner. Wagons are so 1984.
Wheelnut will be pleased!
Andy, I’ve heard the Pontiac G8 (Holden commodore) will be rebadged as a Chevrolet. Possibly as a Impala.
There is suppose to be an announcement in the next two days.
Andy,
Unlikely Holden will go just yet. From that BBC article, it only affects the following US brands; Pontiac, Saturn, Hummer, and SAAB.
That may spell the end of Holden’s export program to US for good if Pontiac goes.
Maybe a biggest looser style of management should be implemented in GM. You have 10 contestants running the business and the one who re structures the business to loose the most bad dept at the end of the week will stay above the yellow line. The rest will meet AJ in the elimination room to “Cut the fat”
Or if you did the elimination by phone poll (Big Brother Style) the proceeds could co back into the business.
What an interesting juxtaposition of 2 of the headline stories here.
On the one hand, you have Rick Wagoner suffering his and his organisation’s addiction to SUVs, acquisitions of ill-fitting brands and mismanagment of others. I mean Hummer and SAAB, respectively.
On the other, you have a story about a bloke who does things right by using synergies of two companies to produce a wide range of cars that people want to buy.
GM needs Carlos Gohsn, but they’re not going to get him.
Golfschwein, ‘juxtaposition’ is entirely too big a word to be using on this website, thanks :-)
He really had to go though, didn’t he?
It would be great for Holden if the G8 was ported across to Chevy.
Pontiac seemed well passed its’ prime, & I’m not surprised that it’s one of the divisions being cut.
So come on……….whats his payout ? What are the idiots paying him ?
He came. He personally profited. He’s gone. Never mind he had his part in mismanaging GM to a point of collapse.
They should fire the entire GM management and hire new ones.
Hmm, but SAAB’s Swede no? In any case, I still hope we get Opel Insignia and a derivative of Volt before they fold. Love em.
Cant belive you can be so poor at your job and still get pain millions. Thay need to get carlos in there the man from nissan and renault,he”ll get the joint in shape
Every time I saw this guy speak, I would think, “I wouldn’t trust this guy any further than I could throw him. Cany anyone else see he is dodgy?”
He reminds me of some dodgy real estate agent or Ponzi scheme manager. I certainly wont miss him and I also would love to know how much his golden handshake will be after steering the company into the toilet for the last 8 years.
I hope the people who advised him also recieve a tap on the shoulder. Sure he was fighting an unfair battle with unions and sure fuel prices hit at exactly the wrong time but it was the boards decision to continue funding Saab, it was the boards decision to challenge California on emissions laws and it was the boards decision to press ahead with the development on SUV’s and other products nowone wanted. I’m glad to see him go.
An eight-year tenure and hasn’t posted a profit since 2004 ? He and his cronies should be sacked as well as the people that appointed him. I wouldn’t let him run a seat belt manufacturing plant.
With such performance Victorian or NSW state government agenices would line up to employ him.
SD that’s funny… I reckon we may get him as the new Holden CEO. As if we have no idea…..Ford tried that trick with the American bloke. He lasted about 5 minutes.
“The manufacturer, which hasn’t posted a profit since 2004″
Strange – remarkably like Holden. Am I missing something here?
2004 was a 300 million after tax profit Realist!
They only lost 6 million after tax for 2007
Correct me if I am wrong but if gm survive wouldnt they want to make their cars in America and give jobs to Americans rather than importing GM\Holdens? That would make sense seeing they are toff-loading non American brands. The only way they will survive is to become an efficient smaller American car company with out the baggage of non- profit making off-shoots like Holden.
The realist,
Anything you say add any value at any time you decide to post? honestly.
Rick Wagoner IS not responsible for ALL of GM’s woes, GM’s problems have been 25 years in the making.
IMO i think the US Federal goverment is silly in asking for Rick W to step down at such a critical time.
More Sh*t sill hit the fan now in regards to GM’s future…
re; Sam Says: March 30th, 2009 at 2:28 pm
Sam that may be a strategy, appoint him CEO of Holden, send it bankrupt and ask for financial help. If no, then sell it off and concentrate on US production if gm lasts that long.
What a load of dibble some of you type!
So Holden has lost money in 2005, 2006 and 2007. What about 2008? And I won’t even ask about 2009…
Are we looking at five consecutive years of losses?
Does Tata need to rescue Holden from it’s long period of unprofitability?
Hey, I’m just asking questions every Aussie tax payer asks!
;-)
I didnt think you paid tax anyway Realist………….hahaha so does it matter ? ;)
“They only lost 6 million after tax for 2007 ”
True, but 2008 aint going to be pretty!
“IMO i think the US Federal goverment is silly in asking for Rick W”
Personally I think its the best time to let him go, lets face it he’s been given enough rope. I mean how bad would you have to run a business to be sacked by the president of the United States. Kind of brings home the saying “You’ll never work in this town again”. Rick’s next address might as well be No 1 Tranquility Base, 1000, The Moon.
Funny and Interesting Lazybones,
There would be few people sacked by an American president, could look bad on yr resume.
However i still say that Victorian or NSW state government agenices would line up to employ him, including a number of Aussie Councils and i’m certain that even ABC childcare would even appiont him as CEO. Being sacked by Obama would give him a walk up start in a number of these ‘organisations’.
Beginning of the end of first world economies as Asia rises on all fronts and swallows us up.LOL
This is going to be a massive redistribution of wealth to Asia. Glad I won’t be around in fifty years time.
Western world plays by the rules whereas Asia doesn’t in relation to trade,patents etc etc and it’s all coming home to roost.
Chinese Government owned companies are on a spending spree. Doubt if they will buy a manufacturer such as GM as they can copy the technology so no need to buy it.They are after resource companies so they can funnel everything to China.
haha, im glad hes been asked to leave. GM was run by a bunch of idiots. way to stubborn to change their gas gusseling ways, and now looks where its left them?
haha all they have to show is the Volt… which is 3 years away from being released… Oh great… seriously GM… go rot in hell, the car industry can do without you and all the added crap your brand brings world wide.
Good Riddance I say.
Agreed. Fire all the management. Hire someone competent with PROVEN track record of good management. Someone said Carlos Ghosn could be one of them. Coudln’t agree more.
You bet I am Frenchie – Unfortunately Lutzy has also gone.. because unlike PRick; Lutzy realised that GMs Subsidiaries particularly Holden and Opel have can and do design and build better quality cars than a number of cars they make in the USA..
He could see that they have a lot more Potential to offer -something Wagonner refused to accept
I have also heard that the Commodore is expected to become the new Chevy Impala.
Andy – I beleive that we will eventually get the Insignia here particularly as HSV are looking at importing a number of Opels to add to their range. Therefore; if they can establish a viable proposal to do so Holden might be tempted to do likewise which would reduce the cost
Mind you as I have said before I think that Holden should build the RWD/AWD versions of the Insignia here instead of the Cruze which is being built in other countries around the world like Korea – where it will be cheaper for Holden to import the car from
Unlike the Insignia which is only being built in Europe. If Holden were to build the Insignia here it would take advantage of Holdens RWD expertise etc and they could help fill orders from overseas instead of just relying on one plant..particularly as the Holden factory is one of the most flexible assembly lines in the GM world.
Limited Slip – Part of GMs problem is that its becoming too expensive for them to make quality cars in the USA.
Not only are they having problems getting the dumb-arse American Auto Workers to realise that a job is better than no job and accept a pay cut taking the average rate from $40 per hour [+ health benefits] to around $20 per hour.
They also have a number of “dedicated” plants operating at less than 70% producing identical cars – whereas Opel and Holden are and operating at over 80% and are more flexible [building more than one type of car]
Therefore I wouldn’t be surprised if The UAW don’t accept the offer made by GM to help keep them afloat and help keep 1000s of jobs..that GM pull-out of the USA all together and make their FWD cars in Europe and RWD cars in Australia or Canada – it may sound ridiculous but it’s a possibility/option.
GM have to focus on where their strengths are.. Opels strength is in building FWD cars; Holdens strength is in building RWD Cars.. whereas Pontiac etc doen’t have any real strengths apart from building powerful V8 engines – which the Holden Engine Company could build if needed
Does anybody have any info on Fitz Henderson (new CEO of GM)? Heard he is a very good bean counter.
What about this chairman of the board Kent Kresa? Is he the offical head kicker (what, who, when do certain people go)?
GM deserves to go bankrupt after killing off the EV1 project, little did they know that the EV1 caused Toyota to panic and respond with the Prius.
Look who is laughing now.
How stupid can a CEO be ?
wheelnut, me thinks your cage has been rattled mate :)
“GM pull-out of the USA all together”
With the funding the US government has already given them, I doubt GM would even think about it. I’m guessing their strategy would be one of reducing their share in foreign partners and attempting to become more American.
“I have also heard that the Commodore is expected to become the new Chevy Impala”
Interesting idea, but given GM are dumping their RWD platform, you’d expect them to favour the more fuel efficient FWD Impala, and while i’m no fan of E85. The Impala already has this option, where the commodore is due for it next year.
Its looking seriously grim for GM, but i did find some light entertainment on youtube. Note the “Born in the USA bit”
http://www.youtube.com/watch?v=dhEhcvwBB78
Finally ! The end of one of the many GM concrete-heads. Other to follow please….!
US President Barack Obama said General Motors and Chrysler should consider bankruptcy proceedings as a way out of the crisis after a White House task force report said their recovery plans to get more state aid were “not viable.”
well at last some common sense………
Bye Bye Holden ? we can only hope……..
“So come on……….whats his payout ? What are the idiots paying him ?”
Apparently 29M (USD), a top porn star would have to screw a lot of people to get close to that figure. Old Rick just had to screw 47,000 people world wide.
hahaha well put Lazybones !
Sorce. Courier Mail Brisbane
GENERAL Motors boss Rick Wagoner will leave the company with around $US20 million ($29 million) in retirement benefits and other compensation.
“It’s not a severance package,” GM spokeswoman Renee Rashid-Mereem said after Mr Wagoner agreed to step down under pressure from the White House as it hardens conditions for new aid to the troubled auto giant.
“It’s pension benefits and other deferred compensation that he’s accrued as of December 31 during his 32 years at General Motors.”
Ms Rashid-Mereem said Mr Wagoner was also eligible for other post-retirement benefits.
“That hasn’t been sorted out yet,” she said.
Mr Wagoner, 56, joined GM in 1977 after studying at Duke University and getting an MBA from Harvard University.
He rose through the ranks in posts including executive vice president and president of GM North America, and GM president and chief operating officer, before becoming CEO in 2000.
Bavarian Missile (.)(.) Says:
March 30th, 2009 at 7:00 pm
“I didnt think you paid tax anyway Realist………….hahaha so does it matter ? ;) ”
Most of my friends and relatives do – so I am deeply concerned. ;-)
I wouldn’t be surprised if the US Gummint steps in and declare that P-ricks Payout to be excessive – which it is
I mean most taxpayers in the US would find it hard to accept; because not only is he [and his attitude] the main reason that GM are in the sh!t.. but some of the $29m would most likely be made up of some of the money the US Gummint gave GM to try and get themselves out of it.
Some of that money relates to benefits accummulated over his three decade involvement with the company, so wouldn’t be fair to pay him zero.
Maybe; but lets put it in persepctive.. there are police officers who risk their lives every day and after 30 odd years of service all they get is a gold watch
So for a narrow minded short sighed ingnorant arrogant old fart with delusions of grandeur who is responsible for record consecutive losses over the last 5-10 years not to mention a gradual decrease in GMs market share etc to receive $29m is just ridiculous
As far as I am aware Rick didn’t start his career on the factory floor or at a Dealereship and work his way up through the industry – he is a Harvard graduate.. which could explain why he is so far out of touch with the real world.
Realist,
Hard to call you that…
Please inform all of us of Toyota Oz’s profit figures between 1995 to 2005…
You might learn something new…
adam (aka mada) Says:
April 1st, 2009 at 10:44 am
“Please inform all of us of Toyota Oz’s profit figures between 1995 to 2005…”
Who cares about Toyota!! I have the same amount of sympathy for Toyota Oz as I do for GMH.
You GMH lovers certainly have issues with the big T!!