“It’s a recognition that will take new vision and new direction to create the new GM of the future.”
-U.S. President Barack Obama
Hello I’m Charlotte Bellis, and you’re watching Newsy.com. That was U.S. President Barack Obama on the resignation of General Motors CEO Rick Wagoner.
President Obama’s request for Wagoner to step aside is a move many are calling “tough love.”
FOX News says Wagoner’s resignation makes U.S. history:“The writing is on the wall for any private company that takes government money. The government is gonna tell you who you can hire, fire, how much you can pay them, the perks that they can receive, their business practices, and basically what product you can put out. History!”
NBC provides perspective, saying Wagoner isn’t the first CEO this administration has forced out:
“Wagoner is the 4th CEO that the administration has forced out since the start of this economic crisis. Fannie Mae, Freddie Mac, those mortgage giants had their CEOs forced out by the government, and also of course AIG which is actually leaving some critics on the President’s left asking why not banking industry?”
CNN reports Asian officials are wondering whether this provides an opportunity:“Asian automakers are now trying to position themselves to really take advantage of the upcoming restructuring and the turmoil in Detroit. But the latest figures out of Japan show that those companies over there also face very weak consumer demand.”
So why Rick Wagoner? NBC brings us the response of Michigan governor Jennifer Granholm:
“Rick Wagoner has worked for that company for 31 years. He is a good man. He clearly is a sacrificial lamb. But I think that he would say that he is doing what is important for the future of the company.”
(NBC's Today Show
FOX News’ Major Garret suggests the White House wanted to send a message to stakeholders:“Rick Wagoner simply was not rising to the challenge of restructuring GM rapidly enough and with enough clarity as to prepare it for the new market realities.”
GM will now have 60 days to restructure, while Chrysler gets 30 days to work out a merger with Italian automaker Fiat.
So do you think Wagoner’s resignation was the right move for GM? Where do you think American automakers should go from here?