Embattled General Motors CEO Rick Wagoner will step down from his position at the automaker after eight years on the job, according to company insiders. The news comes just hours ahead of U.S. President Barack Obama’s planned Monday morning speech regarding the future of the American auto industry. Wagoner’s departure is said to be at the request of President Obama.
Sources to Bloomberg, Politico, and the Associated Press have confirmed the immediate departure of Mr. Wagoner as chief executive of the company. Mr. Wagoner was asked by the Obama team to step aside, sources say. Wagoner previously indicated he would stay with the company as long as the board of directors wanted him at helm.
President Obama is expected to use an address to the nation on Monday to announce a plan to offer General Motors and Chrysler billions of dollars in further loans, provided the UAW and debtholders agree to massive concessions within 30 days. Otherwise, the companies will be forced into bankruptcy.
“We think we can have a successful US auto industry,” Obama told CBS on Sunday. “But it’s got to be one that’s realistically designed to weather this storm and to emerge — at the other end — much more lean, mean and competitive than it currently is.”
In February, controversial GM Vice Chairman Bob Lutz unexpectedly announced he would retire from the company.
