GM’s CEO resigns at Obama’s behest
As reported yesterday, President Barack Obama has promised automakers he will prevent them from going bankrupt but he has also warned them he cannot save them if they refuse to save themselves. They have to push through major cost-reducing reforms, Obama said, and modernize.
Obama said recently he would demand automakers take responsibility for the position they’re in. It seems me means business:
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.
Although I’m never happy when the government tells CEO’s how to run their business, this particular CEO had it coming. He and his henchmen constantly ask the federal government for bailout money, but all help has been in vain. They have used it to survive, not to reform their company and make it competitive.
Troubling is that no one else, no shareholders, no one, forced Wagoner to resign.
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