So, Rick Wagoner is out as Chairman and CEO of General Motors at the request of the Obama administration, who replaced him with the company’s COO, Fritz Henderson.
As far as I’m concerned, it’s about time the government took responsibility for all the bailout money going around. The automakers are in trouble, we all know that. And we all know the reasons, not the least of which is poor management. If management was not a problem, the companies would have been better positioned to weather the current economic storm. I’m not saying they wouldn’t be in trouble, but they may be better prepared and not in need of bailout money just to survive.
Rather than building for the future, companies, including the automakers, built for the present, maximizing profits for shareholders. Now, those same shareholders, who’ve lost the majority of their portfolios because of short-sighted management, want their money back.
The bailout money is supposed to do that, or at least help accomplish that goal. But until now, all that government green has been given to institutions with virtually no strings attached, leading us to fiascos like the AIG bonus mess.
Now, finally, there are strings attached. And Wagoner is paying the price.