GM's Henderson Resigns, Whitacre Takes Over
December 01, 2009
General Motors' CEO Fritz Henderson has resigned and government-appointed chairman Ed 
Whitacre has assumed control as interim CEO of the automaker. A search for a CEO begins immediately, Whitacre confirmed late Tuesday at a hastily scheduled press conference at which he refused to answer questions.
The decision had been made at the GM's board of directors monthly meeting earlier in the day.
In a prepared statement that Whitacre read to reporters gathered at GM's global headquarters in Detroit's Renaissance Center and aired via webcast, Whitacre praised Henderson for his career-long service to GM, including steering the automaker through bankruptcy this past summer. But his statement indicated that while progress had been made post bankruptcy, the pace need to accelerate.
"While momentum has been building over the past several months, all involved agree that changes needed to be made," said Whitacre, retired chairman of AT&T and former college professor.
This marks the second changing of the top guard in less than a year. Henderson replaced Rick Wagoner, who was ousted March 30 as part of the U.S. government's bailout of GM via Chapter 11 bankruptcy.
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 -- that is looking for a cultural makeover. Observers had questioned whether a GM lifer at the top, surrounded by many other executives who had spent their entire careers at the auto company, could truly make the cultural transformation that is required.
Further, while Henderson -- a finance man -- was the right man to maneuver GM through Chapter 11 bankruptcy at breakneck speed, he may not be the right person to grow GM's four remaining brands into a profitable automaker that can pay back government loans to the U.S. and Canada.
Discord Evident
Discord between GM's board of directors, made up of largely new members since the automaker emerged from bankruptcy on July 10, had been evident and mounting.
Henderson had gone to the board promoting the sale of its European operations, Opel in Germany and Vauxhall in the United Kingdom, to Canadian auto supplier Magna International, a deal being financed by Russia's Sberbank.
Instead, the board last month decided to scrap the deal it had on the table and keep Opel.
Two other deals collapsed on Henderson's watch. Only last week, Swedish boutique automaker Koenigsegg backed out of a deal to buy Saab, which is now in play again as the board entertains new offers. And a deal to sell Saturn to Penske Automotive Group failed just as GM and Penske were about to ink the sale papers. Penske said Renault decided at the last minute it didn't want to provide its Korean-made Samsung cars to the venture.
Though the failure of both transactions were not Henderson's fault, it is likely that the board viewed Henderson as being unable to close a deal.
Henderson also made numerous remarks -- seemingly premature -- about GM going public next year -- remarks Whitacre later tempered insisting the American and Canadian taxpayers needed to be re-paid before GM issued an Initial Public Offering.
Meantime, Whitacre is credited with transforming regional Southwestern Bell into the mega communications company, AT&T.
"I remain more convinced than ever that our company is on the right path and that we will continue to be a leader in offering the worldwide buying public the highest quality, highest value cars and trucks," Whitacre read from his statement. "We now need to accelerate our progress toward that goal, which will also mean a return to profitability and repaying the American and Canadian tax payers as soon as possible."
Ironically, Henderson was scheduled as the keynote speaker at Wednesday's opening of the Los Angeles auto show. Bob Lutz, now head of all marketing for GM, will pinch hit. A spokesman assured Lutz, who said he would resign and then changed his mind, is staying with the company. -- Michelle Krebs, Senior Analyst and Editor at Large
Posted by Michelle Krebs at 1:47 PM under Featured , GM , Personalities | Comments (2) | digg this | Seed Newsvine
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
Posted by: MTuzmen | December 01, 2009 at 4:08 PM
GM gets another shot to do this right.
I'll throw a nomination in, being that, like every other taxpayer in the USA, my share of GM amounts to roughly $322.58; how about Mike Jackson, CEO of Auto Nation, a dealer group with 17,000 employees and over 200 stores He has demonstrated an ability to prosper in this market and has some innovative marketing ideas he's trying out. GM would be extremely well served having the Boss come from the front line retail end of the business. Together with the product engineering people they now have, this would be outstanding. Pay him the salary cap and let him keep his interests Auto Nation.
Posted by: fulcrumb | December 01, 2009 at 6:58 PM