GM CEO resigns at Obama's behestPoor Rick Wagoner. Even though Obama was the #1 recipient of GM contributions, ole Rick personally gave the maximum to Mitt Romney in the primary and didn't get smart and make the required payoff to Obama later on.
By MIKE ALLEN
March 29, 2009
The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.
On Monday, President Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler. The plan is based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.
The White House confirmed Wagoner was leaving at the government's behest after The Associated Press reported his immediate departure, without giving a reason.
The surprise announcement about the classically iconic American corporation is perhaps the most vivid sign yet of the tectonic change in the relationship between business and government in this era of subsidies and bailouts.
Wagoner has been CEO for 8 years and at GM for more than 30. The company has not said who will replace him. GM has received $13.4 billion in government aid, and has been seeking $16.6 billion more.
Industry sources had said the White House planned very tough medicine in Monday's announcement, which turned out to be an understatement. And it went to the very top. The measures to be imposed by the government will have a dramatic effect on workers, unions, suppliers, bondholders, shareholders, retirees and the communities where plants are located, the sources said.
Will Obama Force Union Prez to Resign?
Meanwhile, the United Auto Workers Union has been a key stumbling block preventing General Motors from regaining profitability. Monday we will learn what "dramatic" actions Obama will take to change that sorry state of affairs.
Federal interference in the management of America's corporate giants is the downside of accepting federal dollars for bailouts. But it's worse than that. With the Obama Administration capping executive pay while demanding dictatorial powers to seize businesses economic freedom and the basic prosperity which is the driving engine of American life and what peace that exists throughout the world as a result is under assault.
Years from now when the damage to our political and economic system is clear for all to see will we sit back and ask ourselves why no one did anything to stop this? Or will we do something about it now while we still can?