Cerberus on GM – Chrysler Merger: Bring Me The Head of G. Richard Wagoner

Robert Farago
by Robert Farago
cerberus on gm chrysler merger bring me the head of g richard wagoner

Get in line, bub. Still, it’s nice to see GM’s CEO not get credit where credit’s not deserved. The Wall Street Journal is the bearer of bad tidings for the Wagoner clan, delivering Red Ink Rick’s pink slip in the most public of manners. Yes, “people familiar with the matter” of the GM – Chrysler merger reveal that Cerberus wants some “fresh air at the top.” Anonymous sources are breaking out all over, and it’s an endless row of shot glasses full of not good for GM’s current management. “Cerberus and other investors who pump money in the new entity would want to keep significant equity and have the ability to appoint members to its board and influence its management, these people said. Cerberus’s position suggests GM could be in for a shakeup of the nonconfrontational culture that has developed between its 14-member board and its management team, led by Chairman and Chief Executive Rick Wagoner.” Noconfrontationalsmytuches. How about clinicallyinsane? So who’s going to steer this new ship of fools?

“Options for who would lead the combined company include Mr. Wagoner, GM Chief Operating Officer Fritz Henderson and Chrysler Chief Executive Robert Nardelli,” the WSJ opines, leaving TTAC’s Best and Brightest off the list. TTAC’s Deep Throat reckons current GM COO Fritz gets the CEO job, Wagoner goes away and Nardelli becomes Chairman of the Board. Yeah, that’ll work.

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  • Redbarchetta Redbarchetta on Oct 24, 2008

    The problems within GM are bigger than just replacing the CEO. There are many layers of management that have that flaud GM thinking and unaccountablility. Just look at mikey's comment on the post about turning out the lights. Unless a really smart and rather ruthless leader replaces Rick and is given the power without question to shitcan anyone and everyone who stands in the way of fixing what needs to be fixed, at the same time doing huge structural changes within the company. Add to that doing it in a declining market, where they need revolutionary products yesterday and they have no money to make those major changes and develop these products and you can see it's a losing battle for anyone who takes that job. And then they are going to make it 10 times more impossibe by adding Chrysler's managarial mess and bad culture, and debt, and lack of money, etc. If Ford can fix their company culture and weather they storm they will be the last man standing, and pretty damn powerful for doing it. I just hope GM's demise and utter ineptitude doesn't take $100 billion of our tax dollars to the grave with it.

  • No_slushbox No_slushbox on Oct 24, 2008
    volvo: 'The problem with that is as Churchill said “Under socialism misery is shared equally”.' - The socialism that Churchill was talking about was really Marxist Communism, not the progressive taxation and calculated regulation that is now given that label by people with no knowledge of history or economics, and the politicians attempting to manipulate them. Here is part of a speech that the modern right would label as socialist class warfare: "We grudge no man a fortune in civil life if it is honorably obtained and well used. It is not even enough that it should have been gained without doing damage to the community. We should permit it to be gained only so long as the gaining represents benefit to the community. This, I know, implies a policy of a far more active governmental interference with social and economic conditions in this country than we have yet had, but I think we have got to face the fact that such an increase in governmental control is now necessary. No man should receive a dollar unless that dollar has been fairly earned. Every dollar received should represent a dollar’s worth of service rendered—not gambling in stocks, but service rendered. The really big fortune, the swollen fortune, by the mere fact of its size, acquires qualities which differentiate it in kind as well as in degree from what is possessed by men of relatively small means. Therefore, I believe in a graduated income tax on big fortunes, and in another tax which is far more easily collected and far more effective—a graduated inheritance tax on big fortunes, properly safeguarded against evasion, and increasing rapidly in amount with the size of the estate." The speech was given by John McCain's biggest hero, as stated in the 2nd debate, Republican President Theodore Roosevelt.
  • Kurtamaxxguy Kurtamaxxguy on Oct 24, 2008

    Despite all the fear about Chrysler, Reuters reported today that the Dodge Viper division had a number of bids, and that no more are being taken. So take heart, RWD'ers, what may be the ultimate RWD car may live on for yet another day.

  • Ihatetrees Ihatetrees on Oct 24, 2008
    Redbarchetta: Robert you should get started on a screen play, this is going to to be one hell of a blockbuster hit when Hollywood gets a hold of it. As a full length film, I have my doubts about it working. However, Trey Parker and Matt Stone might make it work as animated feature. Or, get HBO and David Simon together. Instead of "The Wire", they could do "The General". Or "The Car". Or "The Waggoner"?