General Motors' board of directors has accepted the resignation of GM President and CEO Fritz Henderson (pictured on the left), who took over for former CEO Rick Wagoner in March.
Ed Whitacre (right) will take over for Henderson in an interim role. He told journalists gathered for a press conference and webcast that "a search for a new president and CEO begins immediately."
This news should not entirely as a surprise, writes Michelle Krebs, Edmunds' senior industry analyst and editor at large, for Auto Observer. "In recent months, the board and Henderson appeared as if they were not on the same page. Henderson wanted to sell Opel; the board overruled, keeping the European company. The eleventh hour failure of GM's sale of Saturn and Saab likely suggested to the board that Henderson couldn't get the job done."
No time frame has been given for installing a permanent replacement, but Chris Preuss, GM vice president of communications, advised the press, "These things usually take months, not weeks."
Henderson had been scheduled to give the keynote address to open the 2009 LA Auto Show tomorrow. Preuss said that Bob Lutz, GM vice chairman, will now give that speech.
Preuss also assured the media that the decision on Henderson's fate was made entirely by the board of directors with no involvement from the Obama adminstration.
However, says Krebs, "Speculation had always been that the government's Automotive Task Force was lukewarm about Henderson, in part because he is a career man at GM -- the son of a Michigan Buick dealer -- which is looking for a cultural makeover... Ed Whitacre was the government's choice to lead the company."
Auto Observer: GM's Henderson Resigns, Whitacre Takes Over
Inside Line News: Henderson Out at General Motors in Sudden Announcement
canddmeyer says:
02:18 PM, 12/ 1/09
Good move. Whitacre was pretty good at AT&T compared to the clown who's now trying to make it like the old AT&T.
thejohnp says:
02:21 PM, 12/ 1/09
Maybe they should change their slogan to "may the best CEO win"?
rsholland says:
02:29 PM, 12/ 1/09
Wow. Didn't see that coming.
jackson611 says:
03:27 PM, 12/ 1/09
Whitacre was good at AT&T/SBC because his telecom was a growth industry and he made major acquisitions. he took over 4 major players in the telecom market in 4 years and then acquired AT&T and Bell South in '05 and '06 respectively.
GM is not going to do any better and be more profitable by taking over Ford and Chrysler (even if it had that kind of cash).
he should do much better than Henderson. the only reason why i could figure out why Henderson was picked was due to his work in Brazil with small cars, but other than that he was a younger Wagoner, both MBAs from Harvard and executives for over 20 years. Whitacre started at Southwestern Bell at the ultimate bottom, measuring telephone wire, and has BS (i think) in engineering.
i meet him once and he was amazingly nice and cordial and was impossible not to like. if GM has any hope, its in Whitacre.
MTuzmen says:
04:01 PM, 12/ 1/09
I am suggesting b4hand, dont get another "finance guy"(or gal) to lead the NEW GM. Make sure you select a new talent with marketing & sales background. I honestly propose
Susan Docherty... Let the "women ruling the world" keep rolling; BUT Bob Lutz must stay!
Seriously, my candidate for the new CEO, Ms. Docherty makes a lot of sense. Come to think of it, she's got good relations with the dealer network, she is good in
leading/managing sales, just got promoted, and she is and has been working darn hard to put things back in track. The Auto Task Force, Ed Whitacre and Ray Young are all
looking well after the financial issues with no doubt... There is simply a need for a sales person at the top. Finance guys used up their rights to serve now; GM has been
appointing CEO's direct from its finance dept. since decades... If talking about change this pattern HAS TO CHANGE. Susan get ready please! /MT
tigz says:
06:07 PM, 12/ 1/09
Im studying accounting and I have obeserved this industry for a while. Although I'm only 21, I have the perspective and understanding required. I believe I would definitely do a better job than these stupid CEOs. GM is not the first to have been in this situation...
cwc1 says:
07:05 PM, 12/ 1/09
Despite their comments, GM *is* under the heavy arm of national government. Do we expect that their executives will publicly admit it, biting the hands that feed them, which also hold the chains thaht bind them? Of course they won't.
Government appointed the majority of the board members, so they are exerting their control. Whether or not the Obama administration directly had anything to do with this specific scenario, they set the whole situation in motion by their prior actions.
cz75 says:
08:09 PM, 12/ 1/09
He seemed too much like the old GM beancounters of yore who ruined the company. It is only too bad that GM being accountable to fedgod bureaucrats is pretty much the same thing.
raptor169rider says:
08:56 PM, 12/ 1/09
what "rsholland" said.
raptor169rider says:
08:57 PM, 12/ 1/09
what "rsholland" said.
inlinesix says:
01:01 AM, 12/ 2/09
GM had issues before the government loans. Now that the government loaned money it is exerting some control. No surprise.
If the company does better in the long run under new management and board, who cares. Maybe they'll make a car I'd drive under new management?
mrryte says:
06:32 AM, 12/ 2/09
I'm willing to bet that Fritz will be given a considerable severence package as he's escorted out the door....
rsholland says:
08:04 AM, 12/ 2/09
Hmmm... I've always felt that Fritz's mustache looked a bit like the "waterfall grille" found on Buicks. As the son of a Buick dealer, I guess it was in his DNA.