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.
General Motors issued a vague statement Sunday night that did not officially confirm Wagoner’s departure.
Here’s how I see it:
GM had the option of declaring bankruptcy and reorganizing under Chapter 11. Instead they agreed to taking buckets of government money, hence making private enterprise a governmental entity.
Bad for GM, worse for the country.
Worse yet: now the government is telling the CEO/chairman to leave.
Is the government going to pressure the unions to make the necessary concessions that could turn GM into a profitable enterprise? The same administration that’s in favor of card-check?
Does the inept Obama administration have anyone with the managerial skills needed for GM to even survive without bailouts?
I wonder how many millions in Wagoner’s golden parachute, and whether the administration will enact more confiscatory taxes on them.
Welcome to Obama Motors, folks.
UPDATE, Monday 30 March
How many millions in Wagoner’s parachute? Twenty:
GM has received billions in loans from the U.S. Treasury Department, and recently asked for billions more. Under its agreement with Treasury, it cannot pay severance fees to senior executives. That ban does not appear to apply to retirement benefits, however.
We’ll see what the outcome is to the second part of my question.