Update: Obama Mandated Step-down; Wagoner to Step Down as GM CEO on Eve of Obama’s Auto Industry Announcement

UPDATE:

Be afraid – be very afraid…

The White House confirmed Wagoner was leaving at the government’s behest after The Associated Press reported his immediate departure, without giving a reason.

General Motors issued a vague statement Sunday night that did not officially confirm Wagoner’s departure.

“We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement,” the company said.

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. It is not yet clear who would replace him, or what role the administration would play in that process.

ORIGINAL POST:

CEO Rick Wagoner, is stepping down as CEO of GM.  No details have been released so this story is developing since the details of his departure are unknown and Mr. Wagoner, himself, has not yet made a statement.

Many are stipulating and insinuating that this is related to the Obama announcement being made tomorrow about the future of the auto industry.

The departure of Wagoner comes as President Barack Obama prepares an address tomorrow morning on his plans for the future of the U.S. auto industry. GM is surviving on $13.4 billion in U.S. loans and is asking for as much as $16.6 billion in additional aid to survive.

Wagoner, who has been lampooned in Saturday Night Live skits and vilified for his central role in the auto-industry collapse, said March 19 that he hadn’t been asked by the government or his own board to resign and his plan is to finish the restructuring.

“I do it because it’s important and I feel like I have a responsibility to do it,” Wagoner said. “I plan to stay here until we get things well in shape and on track and beyond that, we’ll see.”

President Obama will update the public on the Treasury Department’s next step in helping GM and Chrysler on Monday afternoon.

A senior White House official did not deny to CNBC that the Obama administration influenced Wagoner’s departure.

Asked if the administration forced him out, the senior official replied, ” ‘forced’ is a little strong.”

Mr. Wagoner was very successful in his past with various companies, creating profits and sustaining healthy enterprises.  However, his career is being marked by the downfall of GM.  I find it sad that in none of these articles was there any mention of the labor unions and their effect on the industry.  I personally don’t think it would have mattered who was running the company – this was all bound to happen since the US car makers couldn’t keep up with foreign ones, not required to have union labor.  Was there poor management?  Of course, but that was not the main reason for their tanking profits and share prices.  It would have been refreshing, however, to see a GM CEO play hardball with the unions and throw a wrench in their contracts.

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