BREAKING: Ed Whitacre, CEO of GM, is stepping down on September 1st.

[a_Username]

http://media.gm.com/content/media/u...ent/Pages/news/us/en/2010/Aug/0812_transition

DETROIT – General Motors today said that Edward E. Whitacre, Jr. will step down as chief executive officer on September 1, 2010, and as chairman of the board by the end of the year, having successfully led the company’s return to profitability after the most turbulent period in its history.

Earlier today, GM reported its second consecutive quarter of profits after a string of losses dating back to 2007.

Dan Akerson, 61, who has served on the GM board of directors since July 2009, will become CEO on September 1 and chairman by the end of the year, ensuring a smooth transition and continued positive momentum for the company.

“My goal in coming to General Motors was to help restore profitability, build a strong market position, and position this iconic company for success,” said Whitacre. “We are clearly on that path. A strong foundation is in place and I am comfortable with the timing of my decision.”

Whitacre, 68, joined GM as chairman of the board on July 10, 2009. On December 1, 2009, he was named chief executive officer. He led the company after it emerged from a historic bankruptcy to become a profitable automaker again.

“Ed Whitacre was exactly what this company needed, at exactly the right time,” said Pat Russo, lead director on the GM board. “He simplified the organization, reshaped the company’s vision, put the right people in place, and brought renewed energy and optimism to GM.”

“Dan Akerson has been actively engaged in and supportive of the key decisions and changes made at the new GM. He brings broad business experience, decisive leadership, and continuity to this role,” said Russo. “The board of directors deeply appreciates the leadership Ed has provided and is pleased with the serious commitment Dan is making to the company. We look forward to his leadership.”

In addition to serving on the GM board since July 2009, Akerson has had a distinguished career in finance as a managing director at the Carlyle Group and in telecommunication, serving as chairman and chief executive officer of XO Communications and at Nextel Communications. He was also chairman and CEO of General Instrument Corp.

“There are remarkable opportunities ahead for the new GM, and I am honored to lead the company through this next chapter,” said Akerson. “Ed Whitacre established a foundation upon which we will continue building a great automobile company.

I'm not sure about this. The rumor now is why Whitacre is stepping down is due to Akerson's relatively good track record on issues related to IPOs (Initial Public Offering). When the IPO, which is the first step of GM ridding itself of government owned stock, is to be released hasn't been officially stated. IMO, this may backfire on GM due to investors wanting to see some authoritative stability instead of the constant people shuffle that GM is currently doing.

 

[Heartbeat Hauler]

So do you think it is in GM's best interest to rid itself of Government control? I don't think so. Obamanation can't let such a huge investment concern go belly up, how would that look. GM's investors have little or no influence with government in the picture. And GM has all that free money to do the things they want to business strategy-wise. Plus the unions definitely want Obamanation involved and running the show to keep the gravey train on track. What say you?

 

[RI Chevy Silveradoman]

I was under the impression that they paid all the "borrowed" money back already.

 

[a_Username]

So do you think it is in GM's best interest to rid itself of Government control? I don't think so. Obamanation can't let such a huge investment concern go belly up, how would that look. GM's investors have little or no influence with government in the picture. And GM has all that free money to do the things they want to business strategy-wise. Plus the unions definitely want Obamanation involved and running the show to keep the gravey train on track. What say you?

In my opinion, strictly speaking from economic terms, the bailout, for any of the bankrupt companies that received it, should have never happened. However, now that the past is done and nothing can be changed, it is in the best of interest of GM to rid itself of government involvement ASAP.

 

[a_Username]

They paid back the government supplied loans, but the context in which "bailout" is being used is referring to the government owned stock that is still present inside the company at 61%.

 

[RI Chevy Silveradoman]

OK I missed that. Thanks.

 

[Heartbeat Hauler]

Any word on GM buying back stock owned by the US Government?