Daily Archives: March 30, 2009

John Gapper

Having just watched Barack Obama’s televised remarks about GM and Chrysler, the most striking thing was that, after a gentle start praising the historic strengths of the industry and its place at the heart of the US economy, he got remarkably tough.

First, the president said openly that they might have to go into Chapter 11 bankruptcy to meet a 60-day deadline for restructuring, in the case of GM, and 30-day deadline, in the case of Chrysler: 

John Gapper

The departure of Rick Wagoner as chief executive of General Motors was inevitable once Barack Obama’s auto taskforce had concluded that it did not believe the restructuring plan GM had submitted in an effort to gain billions more in government support.

The question is whether Fritz Henderson, who is a GM lifer like Mr Wagoner, has enough credibility to retain his post as Mr Wagoner’s successor for long.