Topic: Will GM be better off without Rick?

[sailor723]

So....do you think Rick Wagoner's resignation will help GM or is his getting the bum's rush from Obama a raw deal?

[safristi]

 a bum rush is always a raw deal.........................................he's TOO BIG TO FLAIL...........

[The Mighty Duck]

I'm mixed on this one.  On the one hand, GM has had lots of time to get its act together and become a viable company, and has failed to do so.  OTOH, they've been doing a reasonable job lately: many of their new models have been very well received (CTS, Malibu, G8, etc.).  And Rick only deserves part of the blame for their current situation: everyone is hurting.  I'm not familiar enough with GM to know if those good models are Rick's contribution, so I'll limit my comments to that end.

That said, given GM's history, I think a shake up is a good thing.  Bringing in new blood, with a new direction, should help things.  Clearly something needs to change at GM: why not start at the top?

[G0dspd]

Wagoner is bailing out before Obama's announcement.  He's saving face or jumping ship.

Wagoner's resignation is a good start but there's a lot of dinosaurs left in GM's administration.  They also need to be "removed".

[Careener]

About FLIPPIN' time is all I have to say. He should have been out the door years ago. The company has lost over $50 billion in value on his watch.

[Erik]

Sad.
He actually wasn't one of the dinosaurs. He is the one who made all the good quality vehicles at GM happen.
Guess I am not surprised tho. People needed someone to blame.
A good man. He will land on his feet.

[articsteve]

Will GM be better off without Rick?

Will Fargo, ND, be better off without rain this week .... hmmmm ..... 

 Automotive News reports that Rick's TOTAL compensation for '07 was $14.4m, or $39,452.05 per day (including weekends).

THE ASSOCIATED PRESS
Published: March 6, 2009

DETROIT -- His company lost $30.9 billion last year and it's relying on government loans to stay in business, yet General Motors Corp. CEO Rick Wagoner received a pay package worth $14.9 million in 2008.

PLUS private jet 

You gotta give the dude a major  .  He stole about 80 million dollars in pay over the last decade and didn't break one law.

   

[ovr50]

Lutz is going, and now Wagoner. Of the two, Lutz is by far the better car guy, and, imo, Wagoner made some dumb decisions. The good cars are Lutz's babies.

Going to be interesting for sure.

[Thinking Out Loud]

So, who is likely best qualified for the job?  Turnaround dinks with no industry experience are likely worse. 

Any ex-BMW/AUDI or similar people with a track record for success likely candidates?

Throwing your rags out ain't a good thing if your closet is bare and you're running around either naked or wearing a pair of pants that don't fit....

Him leaving was the EASY part.

[barrie1]

At least Wagenor was only earning $1.00 a year from now on.  No matter who takes over will they work for this type of wages as if they won't GM is not better off without him? 

[dougjp]

I don't think it makes any difference. Its all politics and making appearances to con the public out of more tax dollars. In other words, tomorrow's announcement is about why the taxpayers are going to pay via more giveaways to non-viable Companies with business plans showing unobtainable sales and impossible break even points, loan repayments etc., and it disparately needs any support ideas they can dream up for the occasion.  This is all so that the "zappies" (aka "electricians", his so called Task Force) can pave the way for his personal vehicle dream - the Pelosi. And not a moment too soon, HERE it IS, the Pelosi, your future, dream on !! :

http://www.youtube.com/watch?v=rAqPMJFaEdY

There has to be an appearance of sacrifices being made, no matter how irrelevant. Wagoner is just a small pawn in this game.

[ovr50]

At least Wagenor was only earning $1.00 a year from now on.  No matter who takes over will they work for this type of wages as if they won't GM is not better off without him? 

I have learned in the past that these deals are never really $1 a year. There are ways that the executive gets the meaningful compensation, assuming things work out properly. It just may not be in salary; but there are many other ways to pay any executive. The $1/yr thing is just window dressing and no executive, Wagoner or any other will work for that IF it were really true. Don't believe it. 

[Winklovic]

GM is circling the bowl.  Wagoner's departure doesn't change anything.

[carcrazy]

I believe that Wagoner should've been fired long time ago, along with the board that allowed GM's senior management to drive to company to the ground. Most likely there are many more GM senior executives that should go immediately.
GM did not fall with the market; it was falling for many years, and certainly way before November 2008. I was watching the Congress hearings live last November and I could not believe how a CEO that has been on the job for 8 years could not answer basic questions about the company's current status and future plans. On those grounds alone, he should be fired.
Certainly only a miracle or unlimited Government funds could keep the company afloat, but Wagoner has to go in any case.

[Hank Horsey]

Watch for a "draft Mitt Romney" campaign.

Not that he'll want the job...

[marineboy]

At least Wagenor was only earning $1.00 a year from now on.  No matter who takes over will they work for this type of wages as if they won't GM is not better off without him? 

 Wagoner made roughly $7000 us per hour in 2008 while his company hemorrhaged billions under his guidance.
Pay me that kind of money and I'll work for a dollar next year... or just say I will, then just bail.
Kinda makes the assembly line workers seem like a bargain.

[Mitlov]

I think it's throwing out the baby with the bath water.  GM's already made their product turn-around; they just need to work out some better deals with the unions and, perhaps more importantly, wait for their reputation to catch up with the new models instead of the old crap like the Allure and G6.  I can't think of a single model from model year 2007 onward that wasn't competitive in its segment.  That doesn't mean that they sell the absolute best car in every segment (no one company does, right?).  But does anyone deny that the Malibu is competitive with the Accord and Camry, that the CTS is competitive with other entry-level luxury sport sedans, that the Acadia is competitive with the Pilot and Highlander, that the Astra is competitive with the Matrix and Mazda3?

If GM was still putting out cars like the Cavalier, I'd say ditch the leadership.  But it's not. 

[Mitlov]

Also, Chief Operating Officer Henderson will replace Wagoner as Chief Executive Officer.  He can't be sleeping too soundly, though, with a Darth-Vader-esque "promotion" like this one.



http://www.autoblog.com/2009/03/29/report-obama-oks-more-short-term-aid-for-gm-and-chrysler-fritz/

[toolatecrew]

Change has to start from the top down.

If a company is in the tolilet you need to change its entire CULTURE and way of doing business. It simply is not possible in my opinion to make that kind of change by keeping an exisiting leadership. People don't change to you need to change the people.

Everyone on the top needs to go.

[dorin]

This would have been a good start back in November.  Now it's rather too late.  It's also not enough, GM's useless Board of Directors also needs to go.