BREAKING: GM chief to step down, sources say
CNN has learned that the Obama administration asked GM CEO Rick Wagoner to resign. (Photo Credit: Getty Images/File)
WASHINGTON (CNN) - General Motors Chief Executive Rick Wagoner will resign as part of the federal government's plan to bail out the struggling automaker, White House and GM sources told CNN Sunday.
Wagoner's departure comes the day before President Barack Obama is expected to announce the latest details of the government's assistance plan for GM and Chrysler LLC.
A GM spokesman declined to comment, but a statement from the company said, "We are anticipating an announcement soon from the administration regarding the restructuring of the U.S. auto industry."
The two automakers face a Tuesday deadline to prove to the Treasury Department that they can be viable in the long term. Without such a finding, the government can recall the $13.4 billion it has already lent to GM and the $4 billion it loaned to Chrysler.
A 32-year company veteran, Wagoner has been CEO of GM since 2000.
Updated: 6:21 p.m.
–CNN's Kate Bolduan and John King contributed to this report.
Finally!!! And of course GM is going under – when an interviewer once asked Wagoner if he was a "car guy," Wagoner responded "what is a car guy?" How can a pasty white accountant run a car company if he doesn't even understand why people buy them in the first place? Don't let the door hit you in the backside on your way out...
It for the goodsake rick wagoner step down because he is not enough doing his job as ceo maybe his only capable for general manager only.
Cut the gold out of his parachute. He ran GM into the ground. If he were a union worker, he'd have his deal renegotiated involuntarily. It would be fair to tell him to get an honest job.
About TIME!!!!!!! Good grief... YOu have to loose 60% of your company before you figure it out.
Outrageous! Not another dollar to GM, which is insolvent without ObamaBucks, nor to third-place Chrysler, which is owned by private equity fund Cerberus, apparently unwilling to chip in. Chapter 11 is the solution, not conversion to the Proletariat Motor Company.
Big deal. He will walk away with how much? Guess better late then never.
I am tired of all the bailouts, but I want you to think about this one.
We don't manufacture anything in the US anymore. I believe that we could be energy independent in 10 years. Why would we not want to have both the engineering and the device to deliver it made in the US?
I have always bought American made cars. You can't complain about everything being imported and then complain about help to OUR industry here. Yes, they will have to wise up and develope a better vehicle to keep up with the alternative energy we produce.
I called IBM last week after they said they were going to outsource 5000 jobs to India. I tried to reach their corporate offices. I believe I was already speaking with India when I called. I asked them,"what could we do to keep those jobs here? What was making it better to send them overseas." The nice gentleman that answered the phone asked me, "are you taking a survey?" I told him I just wanted to know what they needed to keep the jobs here so I could contact my reps and ask for their help.
If we don't have healthcare here taken out of the cost of everything....don't expect things to get better.
Shame on you Rick for paying your taxes! Had you been delinquent Obama would have offered you a position as assistant treasury secretary under turbo tax Timothy Geithner !!
I just find it interesting how hard the Obama adminstration is coming down on the Auto Industry and they are basically kissing the butts of the financial institutions. I am VERY interested in hearing what else they will be demanding from GM and how they plan to deal with the retirees and workers. They HAD to give financial advisors million dollar incentive bonus's even though many of them were responsible for the banking mess. Now lets see what they allow the hourly people of GM to keep. Notice there I AM VERY SURE they won't be seeing any increases in pay or bonus to stay.
What annoys the hell out of me about this whole mess, isf it weren't for the complete freezing up of the credit for 60 days GM may have been able to make it without any help what so ever. They knew they were too big and had been in the process of downsizing again and had just struck a deal with the UAW to reduce thier operating costs by about 30 to 40%. This would have been in full force later this year.
I am VERY concerned for the 100's of thousands of retirees, but will wait and see what else is announced tomorrow. I am also VERY interested in who will be the NEW head of GM.
Not a personal de
cision to step down but a mandate from Obama! Wake up America!
I wish the news would cover the real reason Wagoner has had his head on the chopping block since the big 3 all went to Washington. He is the only CEO that they wanted gone and there is a reason... Why no news coverage? I know!! They have explained it to us at our union meeting back in December.