General Motors Corp. (GM) CEO Rick Wagoner will step down immediately as chairman and chief executive of the struggling U.S. auto giant, sources said Sunday.
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General Motors CEO Rick Wagoner addresses the media during a news conference at GM world headquarters in Detroit, Michigan December 19, 2008.[Xinhuanet.com] |
According to a report by the Wall Street Journal, Wagoner has agreed to step down as part of an agreement to get a new package of federal aid for the Detroit-based automaker.
A U.S. government official confirmed that Wagoner was asked to step down by the administration as a precondition for the ongoing restructuring within the company.
A company source in Detroit, who asked not to be identified, told Xinhua on the phone that staff of the company were told not to comment on the matter until a formal announcement Monday. But the source said she believes what was reported will happen.
GM issued a statement Sunday saying the company is "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 statement said.
Mr. Wagoner has been CEO since 2000 and has managed the company through some of its most difficult moments.
It was not clear who would replace Wagoner, but GM Chief Operating Officer Fritz Henderson is reported to be the most likely candidate.
Over the last four years, GM has reported losses of 82 billion U.S. dollars and nearly ran out of money at the end of last year before the U.S. Treasury Department provided emergency loans.
GM has received 13.4 billion dollars in loans from the Treasury so far and said in February it needed up to 16.4 billion U.S. dollars in additional aid.
President Barack Obama said in an interview with the Columbia Broadcasting System on Sunday that embattled U.S. automakers had not done enough yet to become "lean, mean and competitive" under federal oversight.
Obama called for "sacrifices from all parties involved -- management, labor, shareholders, creditors, suppliers, dealers." He is expected to announce additional aid for GM and Chrysler LLC on Monday.
U.S. Treasury Secretary Timothy Geithner said Sunday the government is ready to help Chrysler LLC and GM restructure, but he declined to comment in detail on new steps expected to be announced by the White House Monday.
(Xinhua News Agency March 30, 2009)