Rick Wagoner, GM CEO, Steps Down

Rick Wagoner has been under the microscope as of late. On Sunday, his reign as the CEO of General Motors came to an abrupt end. Wagoner’s resignation followed a direct request from the White House for him to vacate his spot at the top of the embattled company. Soon, President Barack Obama is expected to announce the GM restructuring plans.

Rick Wagoner, CEO of General Motors, Steps Down (Image: Newscom)

GM has struggled massively to survive the difficult economy times faced by the United States and the rest of the world. With consumers having less disposable income, less new cars are being purchased. Combine that fact with an amazingly high overhead and it’s no mystery why GM has survived only after being given nearly $20 billion in federal bailout money.

Wagoner stepping down might be the first step in a plan that will totally re-work how General Motors is run. Many other high-ranking executives in the business may soon be asked to follow suit and step down. Obama’s forthcoming plan will undoubtedly try to force GM to cut their overhead while giving the company a clear idea of how to proceed into the future.

Although no replacement CEO has been named at this time, one name that has been mentioned often is Fritz Henderson. He has worked as GM’s CFO and COO, which many believe gives Henderson the knowledge to take the step up to CEO.