A bombshell has rocked the automobile industry and an unprecedented event in American History, President Barack Obama has asked for the resignation of the Rick Waggoner as at the CEO of General Motors on Sunday according to the Wall Street Journal. This come on the heel of a deadline set by White House of plans for the car industry viability on tomorrow March 30, 2009. The White House was not satisfied with restructuring plans by GM and Cerburus Capital Management owned Chrysler. Waggoner a 32 year veteran of GM who was named President and Chief Executive Officer 2000. There have been calls his resignation by some in the public since last summer. The resignation was demanded by a conference call between GM and the White House. The interim CEO is Fredrick Henderson GM’s current Chief Operations Officer.
The White House will give second bailout of $30 billion to GM. In fact the White House was set not to give the bailout money unless Waggoner was gone. GM has now sixty days to get is act together or face government imposed bankruptcy.
Chrysler has even less time than GM, the government has set a 30 day deadline to come to an agreement with Italy’s Fiat, SpA or also face government order bankruptcy. The government will give Chrysler $6 billion if the companies strike a deal by April 30,2009
There will be a press conference by the White House on Monday.
What a very sad state of affairs that happened to the American Automobile industry once the envy of the Automobile world. General Motors and Chrysler is nearing the end of the in by end of spring. Fiat and Chrysler need get together very soon. GM on the other hand could disapear by the end of Spring. Both companies need to make concessions with unions and make in in job and car lines to cease to survive. Its going to be a very long long springtime.
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