[Don]

Does anyone know the true facts, not speculation, was the ouster of Wagoner a condition of providing the initial funding ? What would have happened if Wagoner had said " NO "


AutoWeek: By DUTCH MANDEL

Article

General Motors CEO Rick Wagoner out, replaced by COO Fritz Henderson
President Obama's administration made history today with what some see as nothing short of government meddling in the affairs of big business.

What I see is something else: I see the administration showing that it is serious and raising the level of concern from yellow to orange.

Now there is a firm deadline and a message to bondholders, United Auto Worker union members and the American public: Do not be surprised if in the next 30 days--or even sooner-General Motors files for a controlled bankruptcy.

During the days of insolvent banks, insurance companies and other financial institutions, this message was loud and clear.

It's about showing force and instilling confidence. The people are looking for a leader, and for the past 70 days, that leader has said many things, yet few have resonated with those who got him elected. This message strikes right at his constituents: America.

Drastic measures, perhaps. But former GM chairman Rick Wagoner is a team player. He knew he had to take one for the team. And this was an enormous sacrifice, to leave the company he nurtured and developed.

His flaw is what helped GM get through its first 100 years: He was a conservative manager. But he managed and managed well. The pace of things, however, has increased, and it's all only gaining speed.

Rick did nothing wrong to earn this dismissal. He made necessary changes to GM. The company now has world-class products. The company is leaner and meaner. The company is tougher and better prepared to succeed. The company knows its costs better than it has ever known them. There is no better and no more difficult time for GM than now.

And unfortunately, Rick Wagoner is the scapegoat.

But what this country desperately needs is a consumer who is willing to spend money again. It needs a consumer who is not worried about losing his or her job, about refilling the 401(k) bucket, about losing his or her home.

The country needs consumer confidence. Perhaps that is what this president aimed to telegraph with a message heard loud and clear.