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White House ‘Asks GM Boss to Quit’

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29 Mar 09 | al Jazeera

The chief executive of US car giant General Motors (GM) is to resign under pressure from the White House, Obama administration officials have said.

Rick Wagoner’s removal comes hours before Barack Obama, the US president, is to unveil a second bailout for GM and its smaller rival Chrysler.

Wagoner, who has helmed the largest US carmaker for eight years, had said last week that he had no plans to quit, but was asked by the White House to go, said US media citing administration officials.

The GM chief executive and chairman came under fire for his leadership of ailing company late last year when US politicians debated a bailout for the carmaker.

Bailout plan

Obama, who is to unveil his plan on Monday for the car manufacturing sector, said the companies needed to do more if they were to qualify for further government bailout funds.

“They’re not there yet,” Obama told CBS television in an interview aired on Sunday.

“We think we can have a successful US auto industry. But it’s got to be one that’s realistically designed to weather this storm and to emerge – at the other end – much more lean, mean and competitive than it currently is.”

Last week, Obama cited mismanagement “over the years” for some of the car industry’s financial problems.

The industry has been pushed to the brink of bankruptcy, attributed to the global economic crisis, as car sales decline.

GM and Chrysler have asked for another $21.6bn on top of the $17.4bn in emergency loans approved in December.

Ford, the other member of so-called “Big Three” US carmakers, has said it has enough money to survive the downturn without government aid.

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Written by Editors

29 March 2009 at 9:36 pm

One Response

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  1. Al Jazeera had the story b 4 the LA Times–something wrong about that….

    ahrcanum

    29 March 2009 at 11:11 pm


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