General Motors chief executive Rick Wagoner has resigned from the ailing car manufacturer. It comes on the same day as the US government prepares to announce a second bailout for the company.
He will be replaced by chief operating officer Fritz Henderson. GM has also announced that Kent Kresa, chairman emeritus of Northrop Grumman will be interim non-executive chairman of GM’s board. Kresa has been a GM director since 2003.
GM has lost about $82bn (£58bn) since 2004 as its problems mounted in the US market http://www.marketingweek.co.uk/cgi-bin/item.cgi?id=64572&u=pg_dtl_art_news&m=pg_hdr_art It has lost about 95% of its share value since Wagoner took over as chief executive.
GM has failed to clinch needed concessions from bondholders that government officials had set as targets to justify further aid. Together, GM and Chrysler have asked for another $22bn (£16bn) in government loans to ride out a global sales slump and the weakest US market for new cars in almost 30 years. Ford, which is also struggling, is not seeking federal help.
“Our future is dependent on our ability to execute our viability plan. If we fail to do so for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. bankruptcy code,” GM said in a statement.
GM is already looking to separate its European operations. Swedish auto brand Saab is up for sale and attempting to reorganise under new ownership and with aid from the Swedish government. Opel and Vauxhall could go down the same route.
Lat month, GM restructured its European marketing operations for three of its marques. The move saw new chief marketing officers introduced at Opel, Chevrolet and Saab.