Fritzkrieg
General Motors has ditched its chief executive after just eight months on the job
FRITZ Henderson was due to deliver a speech at the Los Angeles Motor Show on Wednesday December 2nd, to give an update on General Motors’ progress since its spell in bankruptcy this summer. Instead his place had to be taken by Bob Lutz, a former GM executive in his late 70s but recently recalled from retirement to supervise the company’s marketing. The silver-haired showman tried to talk up GM’s prospects, but what his audience really wanted to know was why it had suddenly lost its second boss this year.
The short answer is that GM’s independent directors had decided that Mr Henderson, who had spent almost his entire career at the firm, was not the man to get it out of the mire it had sunk into over the decades. Both Ford and Chrysler, GM’s two big American rivals, have installed outsiders to lead dramatic overhauls. Moreover, GM’s new chairman, Edward Whitacre—put there by the government, which now owns a majority stake in the firm—has his own ideas about the way forward, and has taken over as interim chief executive.
Mr Henderson took charge in March after the government, in exchange for a bail-out, demanded the head of Rick Wagoner, who had presided over the decline of what had been for decades the world’s leading car manufacturer. On his brief watch the brisk Mr Henderson delivered some progress, broking deals with bondholders and the United Auto Workers union that helped pave the way for the company to emerge from bankruptcy early last summer and start planning for an initial public offering of shares in the reborn GM.
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