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Fritz Henderson Resigns as CEO of General Motors

December 2nd, 2009 Comments off

After only nine months on the job, Fritz Henderson is resigning as chief executive officer of GM. He had replaced former GM boss Rick Wagoner, who was fired at the direction of the Obama administration, which has injected up to $ 50 billion in taxpayer money into the bankrupt automotive manufacturer.

So this is the “new” GM? It seems apparent that a major internal conflict has arisen within the corporation’s board of directors. A sign of this internal strife was the last-minute decision by the GM board to scrap a deal Henderson had worked out to sell Opel, the company’s European subsidiary, to a Canadian led consortium. In an earlier post, I expressed my view that GM was mad to tear up this agreement, which provided a sound  means to unload a loss-making entity GM simply did not know how to manage.

What does the sacking of Henderson mean in the long-term? Probably confirmation of my earlier assessment, which was that General Motors is toast. Unfortunately, a lot more taxpayer money will be expended before the truth can no longer be denied.

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