GM CEO resigns at Obama's behest

[Arrogance]

From drudgereport.
http://www.politico.com/news/stories/0309/20625.html



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.”




Interested in seeing how this unfolds

[Donald Aquilano]

The government doesn't have any business telling a CEO to step down. Were going down a very slippery sloop here. Where does it end? With Obama I don't think it will he wants government to control every aspect of are lives.

I bet Obama wouldn't dare tell the head of the auto workers union to step down now would he?

[H2FC]

Its about time Rick Wagoner got his ass run off....he is one of the main players who's to blame for this mess we're in now. Of course they will probably pay him a fortune to leave and that Really bothers me.

[HarveyJ]

bd77: They just asked for a metric arse tonne of money from the government. Dunno about you, but if I gave someone a loan for their business, which was clearly failing thanks to their own incompetence, I know I'd want to have a bit of a say about how precisely they were doing business if I thought I figured a better way than they did.

[Gerry]

bd77: They just asked for a metric arse tonne of money from the government. Dunno about you, but if I gave someone a loan for their business, which was clearly failing thanks to their own incompetence, I know I'd want to have a bit of a say about how precisely they were doing business if I thought I figured a better way than they did.

Ditto. This was the sticking point last fall when the first stimulus bill was not passed.

Many wanted the CEO's of the Bailouts ousted and replaced.

The White House and many member of congress who sided with the white house did not.

Well, things have a way of changing with a new administration. And things have a way of coming out *ie, congressman dodd (dud)* who's vote may have been swayed with some bailoutee money.

You may see a sudden departure of many CEO's after this.

I am sure the Socialisima pundits will be shouting I told you so I told you so.

I would rather hear them say, someone must be held accountable and responsible.

Everyone needs to be unified in that sense.

I want a part in what is said, who gets what, who does stays, who goes, and why.

But no one is going to listen to me.

Now, for the first time in God knows how many years, I feel my vote has counted and someone is actually representing me.

AIG heads would be rolling before another penny of our taxpayer money goes to them.

This cause has to start somewhere and the effect has to stop somewhere.

It is not socialism.

It is time to put on the big boy pants and wipe that sniffling nose and take accountability and responsibilty.

[Commerce]

I take no exception to anything Doc Com said in his previous post.

That said, I sincerely hope that similar levels of accountability and transparency are also observed within all areas of government spending (e.g., education, health care, etc) especially as regards the stimulus money. After all, when you think about it, the remarkable media attention recently paid to the AIG bonuses pales relative to the first stimulus budget number passed in this session of congress.

If the stimulus were just $100, the AIG bonus mess would represent less than $0.10 - I am certainly not saying that it is not worthy of some of our attention, it is just that I think the other $99.90 might also be worthy of more of our attention.

The government doesn't have any business telling a CEO to step down.

Yes and no. As others have alluded, if you take taxpayer money, you forfeit some of the control of your company. Obviously, I would agree with the statement as regards private / public companies who do not take taxpayer money through contracts, bailouts, etc.

Even so, I find it interesting that while Mr. Wagoner was asked to step down, I do not recall learning of any bankers being requested to do the same.

[Gerry]

I have a gut feeling that much of this has to do with what just recently been uncovered regarding GM.

First and foremost, the number of people that GM has put on the unemployment lines is staggering. Actually, it is shocking.

With that said, GM has failed to alter its ways of doing business including scaling back on its perks.

It was just recently exposed on television that GM has permitted 4,000 of its executives to drive free of charge any vehicle GM makes and GM buys the gas for all 4,000 of these vehicles.

When this was made public, the GM response was essentially that these people would have to buy a car, drive their own vehicles to work, and pay the gas themselves.

How can a company that has put hundreds of thousands out of work, has shuttered close to two dozen factories, has created ghost towns out of once thriving communities, come before congress and ask for a bailout, not once but twice, and after that second bailout was awarded IMMEDIATELY ask for more - how can that same company justify the continuation of this practice by saying

They won't like having to buy a car their own car and buy their own gas to commute to work.

God Bless America.

Ain't that the American way?

[PRED]

i think it's high time i developed 'obamasurvey.com'

[H2FC]

Rick Wagoner spent his entire career with GM fighting every attempt by the gov. and others to have GM build higher mileage and greener cars.

He spent hundreds of millions in legal fees for the right to keep building big oil guzzlers even while the foreign companies were proving the small green cars to be successful.

He was the primary leader in the car industry that opposed the efforts that would have saved the american car companies from disaster.

GM and the american people would have been much better served had he spent his time instead trying to find a solution to GM's unaffordable union problems...perhaps then he could have better justified his outrageously high paying position.

[south]

i think it's high time i developed 'obamasurvey.com'

That could be huge Pred!

[Gerry]

Even late last year, many money people were stating on the internet and news shows that the best thing to happen would be for GM to file bankruptcy.

This would force all the suppliers and unions back to the bargaining table to renegotiate all contracts.

When the average assembly line worker makes 36 bucks an hour and a large chunk of that goes to the UAW, then something needs to be done.

These are companies that are not going to disappear.

They are going to be leaner and they are going to be trimmed of a great deal of that Good Ol' Boy business model.

[south]

Even late last year, many money people were stating on the internet and news shows that the best thing to happen would be for GM to file bankruptcy.

Many of us have been against the bailouts for a long time: http://www.dnforum.com/f77/major-mar...ml#post1594209

[denny007]

Well without gov money they are done for good. So it's like "if you want our money, he goes". Kosher in my books.

BTW one member's writing style in this thread reminds me of writing style of these crazy pseudo-religious nuts:
http://www.universe-people.com/english/dil1a_e.htm

Now GUESS which member I have had in mind

[000]

It's in the way you dress. The way you boogie down. The way you sign your unemployment check. You're a man who likes to do things your own way. And on those special Saturdays when driving is permitted, you want it in your car. It's that special feeling of a zero-emissions wind at your back and a road ahead meandering with possibilities. The kind of feeling you get behind the wheel of the Pelosi GTxi SS/Rt Sport Edition from Congressional Motors.

All new for 2012, the Pelosi GTxi SS/Rt Sport Edition is the mandatory American car so advanced it took $100 billion and an entire Congress to design it. We started with the same reliable 7-way hybrid ethanol-biodeisel-electric-clean coal-wind-solar-pedal power plant behind the base model Pelosi, but packed it with extra oomph and the sassy styling pizazz that tells the world that 1974 Detroit is back again -- with a vengeance.

We've subsidized the features you want and taxed away the rest. With its advanced Al Gore-designed V-3 under the hood pumping out 22.5 thumping, carbon-neutral ponies of Detroit muscle, you'll never be late for the Disco or the Day Labor Shelter. Engage the pedal drive or strap on the optional jumbo mizzenmast, and the GTxi SS/Rt Sport Edition easily exceeds 2016 CAFE mileage standards. At an estimated 68 MPG, that's a savings of nearly $18.00 per month in fuel cost over the 2011 Pelosi.

Even with increased performance we didn't skimp on safety. With 11-point passenger racing harnesses, 15-way airbags, and mandatory hockey helmet, you'll have the security knowing that you could survive a 45 MPH collision even if the GTxi SS/Rt were capable of that kind of illegal speed.

But the changes don't stop there. Sporty mag-style aluminum-foil hubcaps and an all-new aggressive wedge shape designed by CM's Chief Stylist Harry Reid slices through the wind like an omnibus spending bill. It even features an airtight undercarriage to keep you and a passenger afloat up to 15 minutes when in puddles -- even in the choppy waters of a Cape Cod inlet. Available in a rainbow of bright color choices to match any wardrobe, from Mexican Avocado to French Mustard.

Inside, a luxurious Navy-boat gray, all-velour Barney Frank designed interior features thoughtful appointments like dashboard condom and babyoil dispenser and detachable vibrating shift knob. A special high capacity hatchback holds up to 300 aluminum cans, meaning fewer trips to the redemption center. And the standard 3 speaker Fairness ActoPhonic FM low-band sound system bellows the latest hits from the NPR when you insert your government-issued instant tax credit card.

Best of all, the Pelosi GTxi SS/Rt is made right here in the U.S.A. by fully card-checked unionized workers and Detroit 's famous visionary jet-set managers. Even if you don't own one, you can enjoy the patriotic satisfaction knowing you're supporting extravagant wages, enormous benefits, private jets, and lavish political donations that once again make the American car industry the envy (laughing-stock) of the world.

But why not buy one anyway? With an MSRP starting at only $62,999.99, it's affordable too. Don't forget to ask about dealer incentives, rebates, tax credits, and wealth redistribution plans for customers from dozens of qualifying special interest groups. Plus easy-pay financing programs from Fanny Mae.

So take the bus to your local CM dealer today and find out why the Pelosi GTxi SS/Rt Sport Edition is the only car endorsed by President Barack Obama. One test drive will convince you that you'd choose it over the import brands. Even if they were still legal.

[south]

Absolutely awesome! Thanks 000!

[jberryhill]

The government doesn't have any business telling a CEO to step down.

When the CEO is one of the countries biggest welfare queens, yes, he does.

You seem to forget that Bush authorized a large infusion of operating capital to GM on the condition that GM come back in March with a payback and restructuring plan.

It was one of those little "parting gifts" left for the new administration.

But if you come begging to me with your hand out, I'm certainly going to ask what you intend to do with that money.

You think it is "socialism" to attach conditions to a loan of taxpayer money?

The alternative is real simple - don't show up in Washington on your private jet looking for a handout.

Geezus, BD, you're not even a free market capitalist.

[Gerry]

Not to mention that THE sticking point preventing the Paulson Plan (another covert op) from passing both houses the first vote was the provision calling for the resignation of the CEO's and other ranking officers for those receiving the handout.

It would really be enlightening to go back and see who wanted this stipulation removed before they would vote yea for the measure.

If conditions (such as the GM deadline) had been in place to demonstrate a viable plan by a deadline then there would be less corporate mongruls standing in line with their palm turned upwards.

Many forget that we, the taxpayers, just assumed some ownership in these corporations.

As such, we (in theory) would have a shareholder vote.

Obama just exercised my proxy vote.

[Donald Aquilano]

When the CEO is one of the countries biggest welfare queens, yes, he does.

You seem to forget that Bush authorized a large infusion of operating capital to GM on the condition that GM come back in March with a payback and restructuring plan.

It was one of those little "parting gifts" left for the new administration.

But if you come begging to me with your hand out, I'm certainly going to ask what you intend to do with that money.

You think it is "socialism" to attach conditions to a loan of taxpayer money?

The alternative is real simple - don't show up in Washington on your private jet looking for a handout.

Geezus, BD, you're not even a free market capitalist.

I wasn't for the bailouts to begin with. Bankruptcy is the only option that will save GM. All we are doing is throwing money down the drain and for what? So Obama can pay back the unions for their support- that's my bet.

[jberryhill]

I wasn't for the bailouts to begin with.

Well, a fantastic politician explained it all very clearly just a couple of months ago, thus:

"But ultimately, what the bailout does is help those who are concerned about the healthcare reform that is needed to help shore up our economy. Helping, oh -- it's got to be all about job creation too. Shoring up our economy, and putting it back on the right track. So healthcare reform and reducing taxes and reining in spending has got to accompany tax reductions, and tax relief for Americans, and trade, we've got to see trade as opportunity, not as a competitive, scary thing, but one in five jobs being created in the trade sector today. We've got to look at that as more opportunity. All of those things under the umbrella of job creation. This bailout is a part of that."

I can't recall the name... might have been Thomas Jefferson.

But, actually BD, I can appreciate your position in not supporting bailouts. The deal with the automakers was more than just a bailout. The problem is, having cut that deal in the first place, we don't just walk away and say "Here's your pile of money, OKthnxBai!"