GM chief quits amid losses

• Source: Global Times
• [08:12 December 03 2009]
• Comments

Fritz Henderson

General Motors chief executive Fritz Henderson abruptly resigned Tuesday, after the company's board decided the carmaker needed to push its restructuring faster under new leadership.

Henderson was asked by the board to step down at a meeting in Detroit after being on the job for just eight months, according to a person with direct knowledge of the matter.

GM Chairman Ed Whitacre, 68, will become interim chief executive as the carmaker begins an immediate search for a replacement, the company said.

The announcement of Henderson's sudden departure underscored the tough oversight by a slate of new GM directors led by Whitacre and selected by the carmaker's majority shareholder, the US Treasury.

"This does not come entirely as a shock," said edmunds.com analyst Michelle Krebs.

"Ed Whitacre was the government's choice to lead the company and the automotive task force (of the government) always appeared lukewarm about the idea of Fritz staying in the top job."

Henderson, 51, became CEO in March after his predecessor, Rick Wagoner, was forced out by the Obama administration as part of the US government-funded restructuring of GM.

"Fritz has done a remarkable job in leading the company through an unprecedented period of challenge and change," Whitacre said, at a hastily convened press conference at GM's Detroit headquarters.

"The board decided – and Fritz agreed – that given where we are, it was time to make some changes," GM spokesman Chris Preuss added.