Topic: Whitacre stepping down as General Motors CEO

[tpl]

General Motors chief executive officer Ed Whitacre is stepping down on September 1. Dan Ackerson, managing director of the Carlyle Group and a member of GM's board of directors, will replace Whitacre. The announcement came at the end of a conference call to discuss GM's biggest quarterly profit in six years, and a day ahead of an expected IPO filing that would open the gates for the U.S. government to slash its stake in the automaker.
More   at http://www.bnn.ca/news/19640.html

[toolatecrew]

This just smells bad. "we are going to announce our highest profit 1/4 in years and will be filing for our super duper successful IPO this month..BYE gotta go..."

Why change leaders right before the IPO? It simply doesn't make sense that if the CEO was announcing all this big success (profits) that you wouldn't beg and plead with him to stay just long enough to get the IPO done. At least you can trot out "Look at the great leadership we have, he's brought big profits..invest in our IPO and Whitaker will lead you to more of the same..then once the IPO is done you change leaders..after all its a done deal then.

Its like changing coaches the day before the playoffs. The timing is very suspicious.

[ovr50]

Agreed, it is not usual to change a CEO just before an IPO..

It wasn't that long ago that Whitacre was saying he was staying on indefinitely. I think he was "pushed" but don't know why. Maybe he isn't as capable as he thought he was..

[safristi]

"carlyle group" was that not the festering sores(aka Venture Capitalists who knew how to run a car company..hey it's just like a pizza co, GUYS) that were gonna rescue GM .....before they IMPLODED...and were given 72 Virgins,Grapes and Honey...BUT ..no wrath of and BUY by OBAMA...............

[Erik]

Nothing about this IPO is usual anyhow.

How much is the biggest profit in 6 years anyhow?

[toolatecrew]

Nothing about this IPO is usual anyhow.

How much is the biggest profit in 6 years anyhow?

GM also revealed it made a second-quarter profits of $1.3bn, its largest since 2004. Revenues rose to $33.2bn from $31.5bn in the first quarter, boosted by higher sales of more profitable new models such as the Chevrolet Equinox.

Need to see the details though. Wouldn't want anyone cooking the books right before an IPO now would we?

[rrocket]

I thought this was a stupid move, IMO.  Investors don't like it when CEOs step down right before an IPO.  Why not just keep him until the day after the IPO??

[CatsEye68]

I thought this was a stupid move, IMO.  Investors don't like it when CEOs step down right before an IPO.  Why not just keep him until the day after the IPO??

Because then it would affect the stock price and there would be lawsuit a'plenty.

Nothing unusual about this at all. Big Ed is 68, always said he wasn't a long-timer, and has been commuting back to Texas every weekend. Better for him to announce his departure now. As for his replacement, he has been on the GM Board for the last year, is Obama-approved, and is an ex-Navy man and an engineer. All sounds good to me.

[rrocket]

I thought this was a stupid move, IMO.  Investors don't like it when CEOs step down right before an IPO.  Why not just keep him until the day after the IPO??

Because then it would affect the stock price and there would be lawsuit a'plenty.

Nothing unusual about this at all. Big Ed is 68, always said he wasn't a long-timer, and has been commuting back to Texas every weekend. Better for him to announce his departure now. As for his replacement, he has been on the GM Board for the last year, is Obama-approved, and is an ex-Navy man and an engineer. All sounds good to me.

Yes, it is unusual.  You'll remember only several weeks ago, Ed put himself in charge of future product development.  That's generally a long-term post.  So if he was planning on bailing....why appoint yourself to that position?  That's a pretty commitment intensive position, so if he had any clues he was leaving......why??

Something is still a bit fishy here...

[No H2O]

GM's biggest quarterly profit in six years...

Oh, what new cars did they come out with that everybody went out and bought one?

If there is one set of skills they have, its pulling the wool over the head of the average Joe...the taxpayer.

But hey, they paid off their loans....5 years early, if you believe that 

[rrocket]

GM's biggest quarterly profit in six years...

Oh, what new cars did they come out with that everybody went out and bought one?

If there is one set of skills they have, its pulling the wool over the head of the average Joe...the taxpayer.

But hey, they paid off their loans....5 years early, if you believe that 

Mainly they showed a profit because they had all of their debt/creditors wiped off the slate.  Remember...GM has always been near top of the class for car sales, even when they were posting record losses. 

[TopGun]

Must we revisit the GM/Obama Motors/Debt thing everytime GM does something? 

Here's a summary for this thread sportsfans:

GM haters: Whitacre stepping down is another sign of pending doom!!!

GM lovers: Whitacre stepping down is another stroke of brilliance!!!

[Erik]

Must we revisit the GM/Obama Motors/Debt thing everytime GM does something? 

Here's a summary for this thread sportsfans:

GM haters: Whitacre stepping down is another sign of pending doom!!!

GM lovers: Whitacre stepping down is another stroke of brilliance!!!

The obvious answer to your question, at least around these parts, is YES!

Wasn't Whitacre taking over as Czar of product design considered to be a bad thing around here not too long ago?

And yes, sports fans, GM Did pay off their loans. As in, they no longer have any loans to pay.

[No H2O]

Remember...GM has always been near top of the class for car sales, even when they were posting record losses. 

And I can't think of one of their cars I would buy, even heavily discounted.

[rrocket]

Must we revisit the GM/Obama Motors/Debt thing everytime GM does something? 


And yes, sports fans, GM Did pay off their loans

Yes, since I am (as well as other taxpayers) are part owners of GM.   


Yes, it was widely scrutinized when Whitacre took over product development.  I think they question around here now is "why" is he stepping down?  Surely he was in it for the long haul, as I pointed out earlier.



And yes...GM paid off their TARP loans....with other TARP money.  Even the Inspector General for the TARP fund said so.

[Snowman]

Remember...GM has always been near top of the class for car sales, even when they were posting record losses. 

And I can't think of one of their cars I would buy, even heavily discounted.

  Corvette Z-06, CTS-V, Camaro RS, Regal...

[rrocket]

Remember...GM has always been near top of the class for car sales, even when they were posting record losses. 

And I can't think of one of their cars I would buy, even heavily discounted.

  Corvette Z-06, CTS-V, Camaro RS, Regal...

Porsche=Elitist. 

So those cars are out for him, Snowy...

[initial_D]

Another one fell off the Wagon ..er ...

[Erik]

Must we revisit the GM/Obama Motors/Debt thing everytime GM does something? 

Yes, since I am (as well as other taxpayers) are part owners of GM.   


Yes, it was widely scrutinized when Whitacre took over product development.  I think they question around here now is "why" is he stepping down?  Surely he was in it for the long haul, as I pointed out earlier.

The man is 68. How long of a "long haul" does he have left?

[rrocket]

Must we revisit the GM/Obama Motors/Debt thing everytime GM does something? 

Yes, since I am (as well as other taxpayers) are part owners of GM.   


Yes, it was widely scrutinized when Whitacre took over product development.  I think they question around here now is "why" is he stepping down?  Surely he was in it for the long haul, as I pointed out earlier.

The man is 68. How long of a "long haul" does he have left?

So are you saying that when he took over the post...appointed himself....to head of "Global Product Planning", that this is generally a 2 month post??

C'mon....you're brighter than that....

Something is odd about this.....