GM Chief Booted in Bailout Deal
GM CEO Rick Wagoner resigned Sunday, apparently at the request of the Obama administration as part of a larger bailout agreement. The ouster of the man who gave us the Hummer wasn’t entirely unexpected. He spent the last eight years driving the world’s biggest car company into a ditch. Now if only we could apply this logic to the banking bailout.
The auto industry has now gotten the ugly-friend treatment from no less than two administrations. The relative pittance of an automotive bailout comes with strings attached, including concessions from the unions. So while the robber barons on Wall Street who tanked the global economy get to keep their jobs and retention bonuses, the line workers of Michigan have to make do with less, if they have jobs left at all.
Update: The Obama administration auto task force has sent both GM and Chrysler back to the drawing board, turning down requests for additional loans until they come up with more realistic restructuring plans.
New York Times:
The chairman and chief executive of General Motors, Rick Wagoner, resigned Sunday as part of a broad agreement with the Obama administration to funnel more government aid to the ailing auto giant, according to people close to the decision.
Mr. Wagoner, who has served as G.M.’s top executive since 2000, agreed to step down after it was requested by the president’s auto task force.
G.M. had no immediate comment on the stunning development, which happened on the eve of Mr. Obama’s announcement on Monday detailing his rescue plans for G.M., Chrysler, and the larger American auto industry.