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Old 03-29-2009, 07:53 PM   #1
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Default BREAKING: GM CEO Wagoner out at Obama's request

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Tom Krisher of the Associated Press reports that General Motors CEO Rick Wagoner will step down from his post immediately, based on information given to him from an unnamed source. The news comes on the eve of President Obama's expected announcement of a deadline for General Motors and Chrysler to finalize their restructuring terms or enter government-backed, pre-packaged Chapter 11 bankruptcy. There's no official confirmation from GM at this time. The only announcement the automaker made today was a brief, two-sentence statement in response to the anticipated Obama announcement, saying that they continue to work with the President's automotive Task Force.

The Detroit Free Press reports that the move was specifically requested by the Obama administration as part of the rescue plan that will be announced tomorrow. Wagoner reportedly agreed, and COO Fritz Henderson would appear to be in line to be the new top guy at the RenCen. No official word on that so far, either.

Get ready a big week of auto news, kids. The NY Auto Show just got a whole lot more interesting, too. Stay tuned.
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Old 03-29-2009, 07:58 PM   #2
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Old 03-29-2009, 08:24 PM   #3
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If you've been the Chief Executive Officer since 1994 and you need to get on your knees to the government otherwise your company goes out of business, then yeah, you should have already stepped down.

But realistically this was all planned out. Like he didn't see this coming?!
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Old 03-29-2009, 08:44 PM   #4
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Wow. And people were pissed off about Bush doing wire taps when people talk about Allah and terrorism. Obama has bought companies and is now firing CEOs, anybody else just a little freaked out about this?
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Old 03-29-2009, 08:48 PM   #5
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Holy damn. So much for private enterprises I 'spose...
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Old 03-29-2009, 09:02 PM   #6
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Wow. And people were pissed off about Bush doing wire taps when people talk about Allah and terrorism. Obama has bought companies and is now firing CEOs, anybody else just a little freaked out about this?
I'm freaked out that there are still people out there that can't read an article, don't understand business, or this economy.
But oh well, they never did and never will, not everyone can be smart or pay attention.
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Old 03-29-2009, 09:24 PM   #7
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Wow. And people were pissed off about Bush doing wire taps when people talk about Allah and terrorism. Obama has bought companies and is now firing CEOs, anybody else just a little freaked out about this?
I'm affraid because people elected this dude thinking "change" yet didn't realize how fucking left wing nut job he was. And yet they still defend him!
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Old 03-29-2009, 09:45 PM   #8
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I'm freaked out that there are still people out there that can't read an article, don't understand business, or this economy.
But oh well, they never did and never will, not everyone can be smart or pay attention.
wat?

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The Detroit Free Press reports that the move was specifically requested by the Obama administration as part of the rescue plan that will be announced tomorrow.
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Old 03-29-2009, 11:23 PM   #9
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i'm afraid because the majority of republicans and democrats (at least elected politicians) appear to support various bailouts of any kind, while clearly the constitutionally and logically acceptable course of action is bankruptcy
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Old 03-29-2009, 11:26 PM   #10
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meh both parties are fucked and have fucked up everything. finger pointing gets us fucking nowhere. bunch of deuschbags in govt everywhere...
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Old 03-29-2009, 11:40 PM   #11
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i'm afraid because the majority of republicans and democrats (at least elected politicians) appear to support various bailouts of any kind, while clearly the constitutionally and logically acceptable course of action is bankruptcy
Thank you!

LET THEM FAIL.
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Old 03-30-2009, 02:02 AM   #12
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meh both parties are fucked and have fucked up everything. finger pointing gets us fucking nowhere. bunch of deuschbags in govt everywhere...
TCG revolution??
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Old 03-30-2009, 10:38 AM   #13
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President Obama is scheduled to give a press conference today at 11:00 AM EST today in which he'll officially reveal his plans for the U.S. auto industry. Stay tuned and keep hitting refresh on your browser to learn the latest.

- Auto industry has shed over 400,000 jobs in the past year, Michigan has 10% unemployment rate

- "We cannot and must not, and will not, let our auto industry vanish."

NOTE: DOW down 275 points at 11:11 AM EST

- Companies must stand on their own, not as ward's of the state

- Neither restructuring "plan" goes far enough to warrant substantial new investment each company is requesting

- GM/Chrysler being offered limited, additional period of time to fundamentally restructure in a way that would justify new investment from government.

- Sounds like the administration is basically giving each automaker more time to restructure and another deadline to submit another progress report to justify more investment.

- Committed to working with Congress and automakers to meet one goal: "United States of America will lead the world in building the next generation of clean cars."

- Obama going through list of accolades that U.S. automakers have received for their "green" cars.

- "Our auto industry is not moving in the right direction fast enough to succeed in a very tough environment."

- Obama is now going to go over what each automaker needs to do...

GM
- Current GM plan is not strong enough
- Confident GM can rise again if it undergoes fundamental restructuring
- Rick Wagoner stepping aside is first step
- Not a condemnation of Wagoner, recognition that company needs new vision
- Gov't will give GM adequate working capital to survive next 60 days
- Criteria GM has to meet includes A) consolidating enough on profitable brands, B) cleaning up balance sheets, C) business model to survive and succeed in this competitive global market.

- "Let me be clear, the U.S. government has no interest in running GM."

Chrysler
- Situation more challenging
- Partner required to remain viable (Fiat)
- Fiat will give Chrysler technology and build cars and engines in the U.S.
- Chrysler will repay tax payers before Fiat can take majority stake in company
- Working capital up to $6 billion will be provided to Chrysler for next 30 days, during which time an acceptable deal with Fiat must be struck
- If no agreement with Fiat happens and no other partner steps up, Chrysler gets no more money


- Chapter 11 bankruptcy still an option, Obama is being very careful to explain what "bankruptcy" means, i.e. restructuring, clearing away old debts, companies remain open and workers employed.

- U.S. government will stand behind warranties of GM and Chrysler cars.

What gov't will do to support demand for auto sales...
- Gov't will make sure funds to purchase gov't cars will be paid as soon as possible
- Accelerate Treasury Dept's Consumer and Business Lending Initiative
- Work with auto finance company's to increase available credit

- NEW TAX BENEFIT (for vehicle's purchased between 2/16 and end of year): Deduct cost of any sales tax or excise tax.

- Cash for Clunkers incentive (get money to trade in old car and buy new one): Obama wants to make this happen and make it retroactive, work with Congress to carve out funds from Recovery Act to pay for it.

- Obama ending with speech directly to working people: "I will fight for you."

- Compares auto industry crisis to natural disaster, "Damage is clear and we must likewise respond."

- Designating a new Director of Recovery for Auto Communities and Workers to "cut through red tape". Ed Montgomery appointed, former Deputy Labor Secretary. Will provide support to auto workers and their families (not sure how, though). Apparently he'll have access to Recovery Act money.

- Closing with ra-ra speech on how Americans have always tackled adversity and emerged stronger.
- If no agreement with Fiat happens and no other partner steps up, Chrysler gets no more money



- Cash for Clunkers incentive (get money to trade in old car and buy new one): Obama wants to make this happen and make it retroactive, work with Congress to carve out funds from Recovery Act to pay for it.


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Old 03-30-2009, 12:28 PM   #14
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cash for clunkers is not a program that incents sustainable growth.

it is a program that encourages people to take on new debt obligations while having part of the car be purchased by taxpayers.

how can anyone think that this leads to a healthy functioning economy?
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Old 03-30-2009, 01:25 PM   #15
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Im not surprised.Shoot,in his shoes id be happy to leave this all to someone else.Its not an executive's dream job to run a company into chapter 11 or preside over its breakup.
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Old 03-30-2009, 07:50 PM   #16
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Obama said something to the quote of "The Federal Government is now, uh, backing, uh, all warranties of GM and Chrysler. So if you own one of those types, you need not worry"

So! Now if any GM or Chrysler owners have a problem, make sure to call
202-456-1414 ask for Barack or Joe!
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Old 03-30-2009, 07:51 PM   #17
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Goodbye Chrysler, 30 days until the end, Goodbye GM as we know it- may the bankruptcy judge give you some lube beforehand.

Ford NEVER took a bailout- did a lot of restructuring to avoid this mess, that's one HELLUVA job by that CEO. {golf clap}
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Old 03-30-2009, 08:43 PM   #18
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if the guy brought them down they need someone new to bring them back up otherwise there gonna keep going down.
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Old 03-30-2009, 09:06 PM   #19
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Originally Posted by James View Post
Goodbye Chrysler, 30 days until the end, Goodbye GM as we know it- may the bankruptcy judge give you some lube beforehand.

Ford NEVER took a bailout- did a lot of restructuring to avoid this mess, that's one HELLUVA job by that CEO. {golf clap}
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Old 03-30-2009, 10:58 PM   #20
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Old 03-30-2009, 11:12 PM   #21
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Originally Posted by James View Post
Goodbye Chrysler, 30 days until the end, Goodbye GM as we know it- may the bankruptcy judge give you some lube beforehand.

Ford NEVER took a bailout- did a lot of restructuring to avoid this mess, that's one HELLUVA job by that CEO. {golf clap}
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You mean surviving on 30 billion dollars of credit and loans that they took out before the auto-apocalypse..... Yeah they are surviving, but they will eventually run out of money and end up like GM or Chrysler.......

This shit is so annoying, if I go out and start a Business, no matter how much it helps or jobs it creates, If I run it poorly, it should Fail, end of story.... I'd love to blame Wagoner, but he had a board of directors to answer to, If it was that bad, they should have seen it too, their names aren't being thrown around in the news are they.... they act like he was the only one at the top, That is not how corporate America runs
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Old 03-30-2009, 11:17 PM   #22
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Wow. And people were pissed off about Bush doing wire taps when people talk about Allah and terrorism. Obama has bought companies and is now firing CEOs, anybody else just a little freaked out about this?
This is called big government and it is the worst government to have. What's to say he can't take your money at anytime?

John Kennedy once said to a assembled group of scholars in the White House

"I think this is the most extraordinary collection of talent, of human knowledge,

that has ever been gathered at the White House -

with the possible exception of when Thomas Jefferson dined alone."


The quotes below could prove his point.


His words have come to pass.................



When we get piled upon one another in large cities, as in Europe,

we shall become as corrupt as Europe.

-Thomas Jefferson

The democracy will cease to exist when you take away from those

who are willing to work and give to those who would not.

-Thomas Jefferson

It is incumbent on every generation to pay its own debts as it goes.

A principle which if acted on would save one-half the wars of the world.

-Thomas Jefferson

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.

-Thomas Jefferson

My reading of history convinces me that most bad government results from too much government.

-Thomas Jefferson

No free man shall ever be debarred the use of arms.

-Thomas Jefferson

The strongest reason for the people to retain the right to keep and bear
arms is, as a last resort, to protect themselves against tyranny in government.

-Thomas Jefferson

The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.

-Thomas Jefferson

Very Interesting Quote:

In light of the present financial crisis, it's interesting to read what Thomas Jefferson said in 1802:

'I believe that banking institutions are more dangerous to our liberties than standing armies'.

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks and will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.

Don't forget that Obama is increasing our debt by leaps and bounds more than Bush ever did. We are lowering taxes while continuing to spend more money, how does that make any sense??? Any common sense american should know that in these times, we must raise taxes and curb this pork belly spending by the government....
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Old 03-30-2009, 11:28 PM   #23
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Quote:
Originally Posted by rocket69GTP View Post
This is called big government and it is the worst government to have. What's to say he can't take your money at anytime?

John Kennedy once said to a assembled group of scholars in the White House

"I think this is the most extraordinary collection of talent, of human knowledge,

that has ever been gathered at the White House -

with the possible exception of when Thomas Jefferson dined alone."


The quotes below could prove his point.


His words have come to pass.................



When we get piled upon one another in large cities, as in Europe,

we shall become as corrupt as Europe.

-Thomas Jefferson

The democracy will cease to exist when you take away from those

who are willing to work and give to those who would not.

-Thomas Jefferson

It is incumbent on every generation to pay its own debts as it goes.

A principle which if acted on would save one-half the wars of the world.

-Thomas Jefferson

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.

-Thomas Jefferson

My reading of history convinces me that most bad government results from too much government.

-Thomas Jefferson

No free man shall ever be debarred the use of arms.

-Thomas Jefferson

The strongest reason for the people to retain the right to keep and bear
arms is, as a last resort, to protect themselves against tyranny in government.

-Thomas Jefferson

The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.

-Thomas Jefferson

Very Interesting Quote:

In light of the present financial crisis, it's interesting to read what Thomas Jefferson said in 1802:

'I believe that banking institutions are more dangerous to our liberties than standing armies'.

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks and will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.
^^^Nominated for Thread Oscar for best irrelevant post.


Anyways,we seem to be forgetting something here-Obama didn't order Wagoner out:he requested that Wagoner step down,and GMs head honcho agreed of his own free will.

Wagoner could have told Obama to go pound sand ,and the gov would be powerless to stop him.Yeah,they'd decline the bailout-but since GM is going into bankruptcy one way or the other,its a pyhric victory-there was no point in Wagoner picking a fight.


This isn't government nationalizing GM and kicking out the CEO.This is Obama picking up the phone and saying 'pretty please,MR Wagoner,can you leave GM?'
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Old 03-30-2009, 11:33 PM   #24
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Don't forget that Obama is increasing our debt by leaps and bounds more than Bush ever did. We are lowering taxes while continuing to spend more money, how does that make any sense??? Any common sense american should know that in these times, we must raise taxes and curb this pork belly spending by the government....
Someone buy this man a clue.

Raise taxes, it's the common sense thing to do in these times.
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Old 03-30-2009, 11:45 PM   #25
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Originally Posted by Smoke View Post
^^^Nominated for Thread Oscar for best irrelevant post.


Anyways,we seem to be forgetting something here-Obama didn't order Wagoner out:he requested that Wagoner step down,and GMs head honcho agreed of his own free will.

Wagoner could have told Obama to go pound sand ,and the gov would be powerless to stop him.Yeah,they'd decline the bailout-but since GM is going into bankruptcy one way or the other,its a pyhric victory-there was no point in Wagoner picking a fight.


This isn't government nationalizing GM and kicking out the CEO.This is Obama picking up the phone and saying 'pretty please,MR Wagoner,can you leave GM?'
LOL!!!! When is anything ever that easy when it comes to the government? There is enough cloak and dagger situations going on behind the curtains that no one really knows about but you keep the wool over your eyes if it makes you feel better.
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