Obama forces out Rick Wagoner as CEO of GM. - DFWstangs Forums
 
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post #1 of 36 (permalink) Old 03-29-2009, 05:26 PM Thread Starter
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Obama forces out Rick Wagoner as CEO of GM.

Holy shit, it too the President of the United States to get rid of this guy. I used to think Rick "Red Ink" Wagoner was a pretty damn good CEO. One of the first things he did was to hire "Maximum" Bob Lutz who really turned GMs product line around. But he made a helluva a lot more mistakes than he should have. He should have been let go a long time ago.

COO Fritz Henderson has been appointed interim CEO.

Wagoner stepped down after President Obama asked him to do so. Tomorrow, Obama is expected to lay out a strategy for helping the auto industry turn its situation around. A deadline is expected to be announced. If the deadline isn't met, the federal government will force GM into Chapter 11. It is believed that setting this deadline is meant to force bond holders to take an equity stake in GM in exchange for debt reduction.

http://www.detnews.com/article/20090...328/1148/rss25
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Wagoner forced out at GM
Christine Tierney and David Shepardson / The Detroit News

General Motors Corp. Chairman and Chief Executive Officer Rick Wagoner is stepping down immediately after being asked by the Obama administration to give up his position at the helm of the largest U.S. automaker, people familiar with the situation said.

Wagoner's departure comes on the eve of President Barack Obama's scheduled presentation of his vision for the U.S. auto industry. The president has said he wants to help the struggling industry but faces mounting opposition to bailouts of businesses and industries.

GM declined to comment and it was not immediately clear who would succeed Wagoner, a GM lifer who became the company's chief executive in 2000 and chairman in 2003.

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Industry experts credit him with pushing through profound reforms at the 100-year-old company, but his critics say Wagoner moved too slowly.

After losing $82 billion since 2004, GM is now subsisting on federal loans as it struggles to survive one of the most perilous stretches in its history.

The company has received $13.4 billion from the government and is seeking up to $16.6 billion more.

"From the government's perspective, they had to show a visible form of sacrifice," said David Cole, chairman of the Center for Automotive Research in Ann Arbor and the son of a former GM president.

"At one level I'm surprised," he said, "and at another level, not at all."

An Obama administration official said Sunday that the White House had sought his resignation and Wagoner had agreed.

GM has set a 9 a.m. conference call for Monday morning with top company officials. A person familiar with the matter said GM President and Chief Operating Officer Fritz Henderson would be named CEO on an interim basis.

Henderson has been carrying out the company's restructuring on a day to day basis and knows the task force leaders.

Obama said earlier on Sunday that Detroit's automakers had taken measures to improve their competitiveness.

"We think we can have a successful U.S. auto industry," he said on CBS's news show "Face the Nation."

"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 and mean and competitive than it currently is. And that's going to mean a set of sacrifices from all parties -- management, labor, shareholders, creditors, suppliers, dealers," Obama said.

The president is scheduled to present his strategy for the auto industry from the White House Grand Foyer at 11 a.m. on Monday.

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post #2 of 36 (permalink) Old 03-29-2009, 07:09 PM
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This is mind boggling....Last time I checked the government didn't own 51% of GM. The governments plan....lmao.
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post #3 of 36 (permalink) Old 03-29-2009, 07:17 PM
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bet GM shares jump %30 to 40 tomorow! Then Tuesday everyone will sell and they will plummet back down below $3, near $2 again.

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post #4 of 36 (permalink) Old 03-29-2009, 07:44 PM Thread Starter
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This is mind boggling....Last time I checked the government didn't own 51% of GM. The governments plan....lmao.
If GM wants the next round of loans, they'll do exactly what the Feds say.

I'm kinda surprised they haven't asked the same of Chrysler. Bob Nardelli has done a pretty fucked up job in a much shorter time.

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post #5 of 36 (permalink) Old 03-29-2009, 07:47 PM
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If GM wants the next round of loans, they'll do exactly what the Feds say.

I'm kinda surprised they haven't asked the same of Chrysler. Bob Nardelli has done a pretty fucked up job in a much shorter time.

They need a 2000 version of the K car. Lee Iacoca FTW! (sp?)

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post #6 of 36 (permalink) Old 03-29-2009, 07:48 PM
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If GM wants the next round of loans, they'll do exactly what the Feds say.

I'm kinda surprised they haven't asked the same of Chrysler. Bob Nardelli has done a pretty fucked up job in a much shorter time.
True....But it still doesn't make it right. The power that the govenment is exerting over private industry is down right frightening.
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post #7 of 36 (permalink) Old 03-29-2009, 07:51 PM Thread Starter
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True....But it still doesn't make it right. The power that the govenment is exerting over private industry is down right frightening.
Very true, but what should be more frightening is that they aren't exerting that kind of control over the banking industry that caused many of the problems everyone is experiencing. But then, the Banking Industry pretty much controls the government now..

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post #8 of 36 (permalink) Old 03-29-2009, 08:01 PM
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LOL, so now Obama knows how to run GM. This has disaster written all over it. Bob Lutz will be next, right after he tells Obama to eat his cock.
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post #9 of 36 (permalink) Old 03-29-2009, 08:10 PM Thread Starter
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LOL, so now Obama knows how to run GM. This has disaster written all over it. Bob Lutz will be next, right after he tells Obama to eat his cock.
Bob Lutz announced his retirement a couple of months ago. He has pretty much already handed his duties over to someone else.

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post #10 of 36 (permalink) Old 03-29-2009, 08:18 PM
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True....But it still doesn't make it right. The power that the govenment is exerting over private industry is down right frightening.
Are you joking? If they want BILLIONS of dollars of tax payer money...they better do what the government wants. Just like at work..the person who signs your paycheck, dictates how the business is run. Im not for government take over by any means but obviously private industry cannot run itself...they managed to bend themselves over and pound themselves in the ass

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post #11 of 36 (permalink) Old 03-29-2009, 08:28 PM
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They need a 2000 version of the K car. Lee Iacoca FTW! (sp?)
They will have one, assuming they can get the Fiat 500 over here.

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post #12 of 36 (permalink) Old 03-29-2009, 08:38 PM
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Are you joking? If they want BILLIONS of dollars of tax payer money...they better do what the government wants. Just like at work..the person who signs your paycheck, dictates how the business is run. Im not for government take over by any means but obviously private industry cannot run itself...they managed to bend themselves over and pound themselves in the ass
The problem is that all the real "car guys" that know how to run the sonuvabitch will haul ass. Then you have the same level of incompetence running GM as you have running the good old USA...

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post #13 of 36 (permalink) Old 03-29-2009, 08:52 PM
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Are you joking? If they want BILLIONS of dollars of tax payer money...they better do what the government wants. Just like at work..the person who signs your paycheck, dictates how the business is run. Im not for government take over by any means but obviously private industry cannot run itself...they managed to bend themselves over and pound themselves in the ass
No I am not joking...When did the government become a 51% shareholder of GM. What if the shareholders of GM wanted Wagoner to stay.....though I am sure alot of them wanted him gone.....

Private industry is the backbone of this nation. The government knows nothing about running a "for profit" business. If they run out of money, they print more and raise taxes....and still they are trillions underwater.
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post #14 of 36 (permalink) Old 03-29-2009, 08:55 PM
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They will have one, assuming they can get the Fiat 500 over here.
LMAO at Fiat (F-ix I-t A-gain T-ony)! I would hate that my future hinges on a Fiat!

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post #15 of 36 (permalink) Old 03-29-2009, 09:07 PM
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Wow...here comes the Obama version of the Trabi!


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post #16 of 36 (permalink) Old 03-29-2009, 09:28 PM
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Look at CAFE standards to see how government involvement has 'helped' the car companies, opposed to the market driving the bus. Produce a shit produce and it won't sell, but get the federal government involved and all your products become shit, then the consumer has no choice!

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post #17 of 36 (permalink) Old 03-29-2009, 09:47 PM Thread Starter
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Look at CAFE standards to see how government involvement has 'helped' the car companies, opposed to the market driving the bus. Produce a shit produce and it won't sell, but get the federal government involved and all your products become shit, then the consumer has no choice!
I tend to agree with that.

If the government really wanted consumers to BUY fuel efficient cars, they wouldn't mandate that the cars be efficient, they would simply raise the price of gas through taxes. Look at what happened last year when gas prices hit $3.00 a gallon. Hybrid sales went through the roof. SUV sales tanked. Cars getting 30mpg or better became top sellers. For a time, the Civic was outselling the F-150.

CAFE has helped but if you look at Europe, you can see that they have a larger collection of fuel efficient cars than we do in the US. Over there, gas is taxed so high that it can cost $5.00 a gallon or more. As a result, most people drive small fuel efficient cars. Diesel cars are hugely popular over there because diesel isn't taxed nearly as much.

In other words, don't drive the product, drive the market. Just one more example of how the feds have their heads up their ass.

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post #18 of 36 (permalink) Old 03-29-2009, 09:50 PM
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I can see tax rebates coming

for buying a new car. Or, turn in your old car and drive off in a new one.
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post #19 of 36 (permalink) Old 03-29-2009, 09:53 PM
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Are you joking? If they want BILLIONS of dollars of tax payer money...they better do what the government wants. Just like at work..the person who signs your paycheck, dictates how the business is run. Im not for government take over by any means but obviously private industry cannot run itself...they managed to bend themselves over and pound themselves in the ass


The government is a minority shareholder. Nothing more, nothing less. You can't throw everything out the window just because we're in a different situation than we've ever been in before. It really concerns me that the government's power grab is being deemed not only as acceptable, but as necessary.

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post #20 of 36 (permalink) Old 03-29-2009, 10:14 PM
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Well, the government's wet dream of owning a car company that can produce green/electric cars just got a step closer. What's next, mandating that we own these pieces of shit?
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post #21 of 36 (permalink) Old 03-29-2009, 10:57 PM
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Well, the government's wet dream of owning a car company that can produce green/electric cars just got a step closer. What's next, mandating that we own these pieces of shit?
It'll be real funny when they build 5 million "green/electric" vehicles, and they sit on dealership lots like '59 Edsel's. Now THAT would be funny!

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post #22 of 36 (permalink) Old 03-29-2009, 11:07 PM Thread Starter
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for buying a new car. Or, turn in your old car and drive off in a new one.
The bill is already in committee in the House. They're tossing a figure of $5000 around.

I need to find a copy of it and look it over. If they don't put a requirement for owning the junker for an extended period of time, I'm going to get a junker and trade it in..

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post #23 of 36 (permalink) Old 03-30-2009, 05:42 AM
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Obama = Socialism.

He's just trying to become KING.

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post #24 of 36 (permalink) Old 03-30-2009, 06:39 AM
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Obama = Socialism.

He's just trying to become KING.
This is True. He forces Wagoner out and puts his "guy " in or maybe he will let his VP big bad Joe over-see G.M. I think Obama is out to destroy every this that is great about this country along with most of our freedoms. This is nothing more than a power grab, and a chance to dictate what we drive. Car's represent FREEDOM and they can't stand that. What's next?

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post #25 of 36 (permalink) Old 03-30-2009, 06:41 AM Thread Starter
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This is True. He forces Wagoner out and puts his "guy " in or maybe he will let his VP big bad Joe over-see G.M. I think Obama is out to destroy every this that is great about this country along with most of our freedoms. This is nothing more than a power grab, and a chance to dictate what we drive. Car's represent FREEDOM and they can't stand that. What's next?
He's not putting his "guy" in. It is all but a lock that the current COO, Fritz Henderson, will be made CEO. He has already been named interim CEO.

Henderson has long been seen as a possible successor to Wagoner.

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post #26 of 36 (permalink) Old 03-30-2009, 06:49 AM
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So, is it me or is this pretty minor/good compared to some of the other shit Obama has done?

I know what people are saying, but I'm not against CEOs of these fucked up companies/banks getting fired/forced to resign. Hell, I think it should be DEFAULT that they are fired when it gets to this point.

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post #27 of 36 (permalink) Old 03-30-2009, 06:52 AM
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Nothing wrong with justification to receive federal money, but what ticks me off is that the same standards did not apply to the banking industry.

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post #28 of 36 (permalink) Old 03-30-2009, 07:11 AM
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So, is it me or is this pretty minor/good compared to some of the other shit Obama has done?

I know what people are saying, but I'm not against CEOs of these fucked up companies/banks getting fired/forced to resign. Hell, I think it should be DEFAULT that they are fired when it gets to this point.
My question is when do we get to boot obama out for fucking up our country?

Rick Wagoner did not put G.M. in this mess, our government and the economy did. And, what about the fact that the guy that will now run G.M. has been a top executive there since the early 80's would he not be part of the prob.

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post #29 of 36 (permalink) Old 03-30-2009, 07:40 AM
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Nothing wrong with justification to receive federal money, but what ticks me off is that the same standards did not apply to the banking industry.
that's what gets me...between AIG and all of the banks receiving bail-out money, they're getting multiple times more than what the auto industry is getting and no heads rolled over that... why now?
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post #30 of 36 (permalink) Old 03-30-2009, 07:59 AM
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that's what gets me...between AIG and all of the banks receiving bail-out money, they're getting multiple times more than what the auto industry is getting and no heads rolled over that... why now?
Market's down about 240 this morning, reflecting Barry and Timmy pirating GM...

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post #31 of 36 (permalink) Old 03-30-2009, 08:06 AM
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Nothing wrong with justification to receive federal money, but what ticks me off is that the same standards did not apply to the banking industry.
Maybe they are learning as they go along?



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post #32 of 36 (permalink) Old 03-30-2009, 09:06 AM
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Market's down about 240 this morning, reflecting Barry and Timmy pirating GM...

No shit, I was completely wrong!

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post #33 of 36 (permalink) Old 03-30-2009, 09:25 AM
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True....But it still doesn't make it right. The power that the govenment is exerting over private industry is down right frightening.
Is it really private when tax payers are giving them this much money in bailouts?

I am not an advocate of government power in private businesses, but I do think once the business gets help in the form of bailouts from taxpayers... it is no longer a private company. A private company funds itself.

Last edited by mustangguy289; 03-30-2009 at 09:54 AM.
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post #34 of 36 (permalink) Old 03-30-2009, 09:43 AM
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It'll be real funny when they build 5 million "green/electric" vehicles, and they sit on dealership lots like '59 Edsel's. Now THAT would be funny!
I'd rather have an Edsel...
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post #35 of 36 (permalink) Old 03-30-2009, 11:54 AM
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Is it really private when tax payers are giving them this much money in bailouts?

I am not an advocate of government power in private businesses, but I do think once the business gets help in the form of bailouts from taxpayers... it is no longer a private company. A private company funds itself.
IMO unless the govenment buys the company then it is still private. Don't know what the T's &C's of the gov loan are or where they rank as far as risk <> bank lenders and bond holders. As the only entity in the world that will lend/give money to GM at this point, they will get their way. The government needed a fall guy and now they have one for the time being. Now, after they give the new CEO detailed instructions from the "Brainiacs" running and influencing D.C and it fails, then GM will be forced to do exactly what it should have done to start with...Chapter 11.
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post #36 of 36 (permalink) Old 03-30-2009, 12:07 PM
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