The problems with General Motors (GM) do not seem to end, and if latest developments are any indication of the way things are shaping up at the GM the investors need to be a bit worried, if not overtly cautious.
Well, the GM board has asked its CEO Chris Henderson to step down in the meeting held at Detroit. And this comes just 8 months after Chris took over to help in turnaround of the mammoth operations of General Motors. Unconfirmed sources indicate the Directors are looking to take a new path towards restructuring the ailing General Motors and have appointed Whitacre as the new CEO.
While the scope of Whitacre’s engagement is still not clear, a statement from Whitacre acknowledges the contribution of Chris in difficult times. At the same time, Whitacre did talk about a need to make changes to embark on a progressive path. If anyone has been following General Motors in the past 8 months, one can safely conclude that Whitacre enjoys the confidence of the Obama administration. Given the fact that the US Treasury is the largest shareholder of General Motors, a larger role for Whitacre was in the offing for sometime. Add to this the fact that Whitacre has made sure that he is in the thick of action by making surprise visits to GM plants and posing straight questions to the GM staff at all levels.
To be fair to Whitacre, he has already mentioned that this is an interim arrangement while General Motors looks for a new CEO. And, for some time now, General Motors has been working hard to get someone like Alan Mullaly to tide them over the failures.
Only time will tell if the change in guard at the top will help a bankrupt General Motors to regain the glory it once basked in. We are watching this space at the Fuel Card company.