Friday, December 4, 2009

GM on the Fritz

In a surprising move this week, GM dismissed CEO Fritz Henderson and granted Saab a stay of execution. Henderson, who took over GM after Rick Waggoner was forced out earlier this year, had been with GM for 25 years.

I suspect Henderson was asked to resign because he was too much of a company man, too much of the "old way" of doing business that has plagued GM since before his arrival. GM's board of directors are probably envious of what Ford has accomplished when they hired Alan Mulally, whose last stop was at a little aircraft firm known as Boeing. Mulally put Ford in a position where it didn't require a bailout, and is now launching a revamped line of products that are winning awards from the automotive press. GM is still struggling to sell Saab and Hummer, a process which has taken twice as long as their bankruptcy proceedings. Apparently the drawn out process of selling GM's non-core brands has caused deals for Saab and Saturn to fall through and put Hummer at risk.

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