GM CEO steps down

In a surprise move possibly demanded by government negotiators, GM CEO Rick Wagoner, who has been in office for eight years, will be stepping down, according to a Detroit News article.

President Carter set, as one requirement of the original Chrysler loans, a demand that Chrysler’s CEO step down; he did so and was famously replaced by Lee Iacocca. Chrysler entered a new period of prosperity with its K-cars and minivans, and paid the loans off early, then revolutionized full-sized pickup trucks and large cars in the 1990s, also releasing the first American small car to be sold at a profit for many years. Chrysler’s profits only ended with its government-approved acquisition by Daimler.

General Motors and Chrysler are both seeking immediate loans from the government; Ford, while claiming it is not interested, has also been asking for billions in pre-approvals for loans it claims will not be necessary. Wagoner has been criticized for not downsizing General Motors sooner, and President Obama claimed in a speech that the domestic automakers had not done enough to cut their costs.

 Like on Facebook