GM chief quits amid losses

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

Whitacre, a former AT&T chief executive, became chairman of GM in July as part of a new board vetted by the US Treasury.

Whitacre said he knew nothing about the industry when he became GM chairman and surprised GM insiders by making unannounced plant visits and putting blunt questions to workers at all levels.

Henderson, a career GM executive, had vowed since his tenure to reform the slow-moving culture that contributed to the carmaker's collapse.

But GM's faltering efforts to sell off its laggard brands dominated Henderson's short tenure and tarnished his reputation as a deal maker and raised questions about the company's strategy.

"The board and Henderson appeared as if they were not on the same page," Krebs said.

The announcement showed fresh turmoil at Detroit's largest carmaker, which last month reversed course on a decision to sell its Opel/Vauxhall European operations and then saw a deal to sell its Swedish-based Saab division fall apart.

GM said two weeks ago it suffered a net loss of $1.15 billion in the period since emerging from bankruptcy in July. It said it is making progress in reviving its fortunes, although more losses are predicted.

Agencies