The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.
The White House confirmed Wagoner was leaving at the government’s behest after The Associated Press reported his immediate departure, without giving a reason.
On Monday, President Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler.
Industry sources had said the White House planned very tough medicine, which turned out to be an understatement. And it went to the very top. The measures to be imposed by the government will have a dramatic effect on workers, unions, suppliers, retirees and the communities where plants are located, the sources said.
GM and Chrysler have to prove their viability as a condition of a federal bailout released under former President George W. Bush, and both have asked the current administration for more money.
Obama said Friday in an interview with CBS’s “Face the Nation,” broadcast Sunday, that the carmakers were going to have to do more.
“There’s been some serious efforts to deal with a combination of long-standing problems in the auto industry,” the president told host Bob Schieffer. “What we’re trying to let them know is that we want to have a successful auto industry, U.S. auto industry. We think we can have a successful U.S. auto industry. But it’s got to be one that’s realistically designed to weather this storm and to emerge at the other end much more lean, mean and competitive than it currently is.
“And that’s gonna mean a set of sacrifices from all parties involved – management, labor, shareholders, creditors, suppliers, dealers. Everybody’s gonna have to come to the table and say it’s important for us to take serious restructuring steps now in order to preserve a brighter future down the road.
Schieffer followed up: “But they’re not there yet.”
Obama added: “They’re not there yet.”
(Source: Politico)
Join the official YWN WhatsApp status
10 Responses
since when does a sitting president get involved with private industry? the fact that he is even remotely involved adds to the pathetic state of this administration.
2010 & 2012 can’t come fast enough!
Just because he took one of America’s most important companies and bankrupted it, destroyed the shareholder’s investment, and meanwhile made off with a humongous salary and bonuses.
Big chidush. What exactly is he saying dofferant then bush or anyone else?
Next step in the nationalization of private industry. His heroes Marx, Lenin and Stalin (not to mantion Chavez) would be proud. Hold on to your wallets folks, it may already be too late. A bolt of lightning may be the only solution. Moshiach anybody?
It is unneccesary for Obama to forcefully nationalize our corporations as the unions are just gradually forcing them over time. With Obama’s union proposal just wait for the rest of them to do the same. Thats what they want anyhow.
I think it’s a little suspicious that this ceo is out but not the ceo’s in the bank. Somethings up. This is a power grab and more. The ceo may be terrible but the president shouldn’t be firing him.
Mark (#1)
When a private industry runs out of money and can no longer meets its financial obligations, it is NORMAL and ROUTINE that a bunch of civil servantgs take it over. Usually these are civil servants in the judiciary branch and the Justice Department who work in the BANKRUPTCY COURT (note: these are not “Judges” – at most they are magistrates appointed for a fixed term). Since GM is bigger than anything that has ever gone bust before, the powers that be going back to the Bush administration thought the bankruptcy bureaucracy would be overwhelmed.
If you object to the government taking over dead corporations, perhaps you object to all bankruptcy? Should we go back to the system of throwing exectuives of bankrupt countries in jail (or selling their kids as slaves)????
BANKRUPTCY is NATIONALIZATION, and by announcing it was unable to pay its creditors, GM requested to be taken over (as opposed to having the sheriff start auctioning off its assets for pennies on the dollars).
why not fire the people at AIG?
Obama = Chavez
Obama = Socialism
Hugo does the same thing in Venezuela.
Lets hope the midterm election bring about TRUE change from this socialist regime of Obama, Pelosi, Ried, Frank, etc. There is a groundswell of people who “suddenly” woke up after the election and said, “OH MY GOSH WHAT DID WE DO!!??” We hope they remember that in 2010 so vote many of the do nothing Congress people OUT.
Bankrupcy is NOT nationalization. It is the common stock being canceled and reliquishing their ownership and the debtholders become the shareholders. This is what happened in KMart where Eddie Lampert bought senior debt in bankrupcy and became the largest shareholder.