General Motors' (NYSE: GM) CEO Rick Wagoner has been kicked upstairs [subscription required], according to the Wall Street Journal. He will focus on international expansion and advanced technology. Not much of a job for a chief executive. Frederick Henderson will take over as COO and run the company's daily operation.
Wagoner's sin was that he could not launch products that would get GM back some of its market share in the U.S. He was able to cut costs and get an improved deal with the UAW, but GM's January sales were down over 12% in its home market. Its share in America is only about 25%. Toyota (NYSE: TM) has muscled GM out of its lead in small and mid-sized cars.
At this point, it does not matter who GM puts at the top of the company. There is a race between the company's growing sales overseas and its falling prospects in the U.S. But multi-billion annual losses in North America cannot be offset by the rest of GM's operations.
GM's stock is back near a multi-year low. The company began losing its war in the U.S. a decade ago and that can't be reversed by new management.
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 1)
3-05-2008 @ 10:46AM
gumby said...
Why doestn GM do the same tango as Altira as it is spinning off international operations ?? Then let shareholders decide wheterh to keep North American operations or not... One GM share spinned into one half GM share and one half GM World share??
3-05-2008 @ 12:29PM
jpdr1100 said...
GM has just begun to tap the wealth of brains and products it has in its overseas operations. The new Saturns are mostly rebadged German Opels. Yet another Pontiac is being imported from Holden of Australia. Korean Daewoo is handling all GM's small car development, and much of its production.
Split the company apart on national lines and all that progress disappears.
3-05-2008 @ 2:31PM
gumby said...
Even that we are in a recession doesnt necessarily mean that GM and Ford will survive or fail.. GM and Ford is in intensvie care now yet there is still milliions of Toyotas and Hondas being sold over the heads of GM and Ford!!! Unusual times call for unusual action, but we are unmoved as we still talk about Toyotaas and Hondas as the best cars to buy . We are not as concerned about the future of GM and Ford as I thought we would because of the dire straits GM and Ford is going through. Look, there will not be anyone around to announce the date of bankruptcy for GM and Ford. No body will and when it happens , then it happens without any warning.. CEOs of GM and Ford is talking the game and keep up the good word around but in reality, nobody knows for sure... I am looking at Toyota and Honda carowners in disbelief... They are thinking that GM and Ford wont disrupt the economy if turned belly up... I think it can be the start of a super recession because of that... It is not only the workers but there is so much business revolving around GM and Ford that will see sales plummet as GM and Ford loyalists throw up hands... It iwll be a disaster !!!
3-05-2008 @ 2:37PM
gumby said...
GM and Ford had been losing market share yet they are handing out cash to UAW purses ever since I can remember when... They cant do both giving and competiting with the almighty Tokyo!! What it tell me is that GM and Ford is already undergoing bankruptcy proceedings and UAW doesnt wish to miss the party!! Shareholders not invited!!!
3-05-2008 @ 2:38PM
gumby said...
UAW axle workers put out a strike becasue they can not make more axles as GM sales of pickups and SUVs plummete. It is just a coverup. The writing is on the wall....BANKRUPTCY!!!!!! GM AND FORD WILL ANNOUNCE GOD AWFUL EARNINGS NEXT MONTH!!! REALLY GOD AWFUL AND PROBABLY BANKRUPTCY!!!!! UAW IS NOW BUSY DIGGING INTO THE TREASURIES OF GM AND FORD FOR BENENFITS AND STUFF BEFORE THE INEVITIABLE BANKRUPTCY ANNOUNCEMENT PENDING NEXT MONTH FOR SURE !!! WE ARE SUPPOSED TO BE PATRIIOTIC AND WALK AWAY FROM TOYOTA AND HONDA DEALERSHIPS THIS YEAR AND NEXT YEAR TO HELP GM AND FORD OUT.. IT IS NOT HAPPENING EVEN DURING THIS MILD RECESSION... THIS RECESSIOIN WILL GET DEEPER AND WIDER AFTER GM AND FORD WILL DECLARE BANKRUPTCY NEXT MONTH AFTER EARNING ANNOUNCEMNETS I GIVE IT A 50/50 CHANCE... IF SALES HASNT IMPROVED THIS MONTH AND NEXT MONTH IT WIL BE THE FINAL DEATH KNELL FOR FORD AND GM FAREWELL GM AND FORD I MISS YA ALL!!
3-05-2008 @ 2:40PM
gumby said...
HEY TOYOTA AND HONDA AND NISSAN AND HYUNDAI AND LEXUS AND VOLVO AND KIA AND MAZDA AND MITSUBISHI CAR SHOPPERS IN AMERICA YOU ARE TAKING RISKS WITH GM AND FORD PROBABLE BANKRUPTCIES VERY SHORTLY... IF IT HAPPENS, IT MAY MEAN YOUR JOB TOO I DONT KNOW WHERE THE RIPPLES WILL HIT FROM THERE ... IF YOU THINK YOU ARE A SMART CONSUMER REPORT READER THEN YOU MAY BE A DUMB JOB SEEKER LATER....
3-05-2008 @ 2:56PM
gumby said...
GM AND FORD CEO WILL DISMISS MY WARNING AS RUMORS OR HEARSAYS, ETC BUT I KNOW IT BY JUST LOOKING AT THE SITUATION AS I SEE IT... LOOK IT IS RECESSIOIN AND MOST STILL THINK HONDAS AND TOYOTAS ARE BETTER ... THIS IS A SITUATION THAT GM AND FORD CANT FIX IN A YEAR OR 5 YEARS .. GM AND FORD ARE HANDING OUT CASH TO UAW JOB BUYOUTS WHICH IS A MISTAKE!!! IT IS MONEY NEEDED TO BUY BETTER PARTS TO PUT IN MORE COMPETITIVE MODELS AND BEAT TOYOTAS AND HONDAS BACK... UAW IS MORE CONCERED ABOUT THEIR HIDES THAN ANYTHING ELSE...IF UAW BELIEVE THAT GM AND FORD WILL SURVIVE, THEY WOULD WALK OUT WITH ORIGINAL PENSION PLANS INTACT WITHOUT THE NEED FOR BUYOUTS OF $140,000 OR SO.. UAW KNEW THAT GM AND FORD IS BURNING CASH SO THEY ASKED FOR CASH OUTS AND OTHER AGREEMENTS AS PART OF THE SILENT BANKRUPTCY PROCEEDINGS THAT IS GOING TO HAPPEN ANYTIME... SELL GM AND FORD NOW MAYBE IT WILL HELP WOULD BE TOYOTA AND HONDA SHOPPER THINK TWICE ABOUT WHETHER TO ALLOW GM AND FORD DOWN THE TUBES.. THEY MIGHT HAVE BEEN THINKING THAT GM AND FORD WILL ALWAYS BE THERE FOREVER... THEY NEED COLD WATER THRWON ON THEM NOW!!! SELL GM AND FORD AND SEE IF THE SHOPPING PATTERNS IMPROVE NEXT MONTH BEFORE JUMPING BACK IN... IT MAY THE LAST MEDICINE FOR GM AND FORD...
3-05-2008 @ 2:56PM
gumby said...
AMERICA IS TAKING AN UNNECESSARY BIG RISK WITH GM AND FORD BY NOT SHOPPING THEIR COBALTS, FUSIONS, FOCUSES, AVEOS, MAILBUS, FORGET GAS GUZZLING PICUPS AND SUVS... GM AND FORD NEED YOU AMERICA TO BUY MANY MORE FUEL EFFICIENT CARS FROM GM AND FORD TO SAVE THEM .. IF YOU CHOOSE NOT TO DO THIS,,, GM AND FORD WILL GO BANKRUPT ANYTIME CASH BURN IS VERY RAPID AND UAW IS ANXIOUS TO SAVE WHAT IS LEFT OF IT FOR THEIR RETIREMENT BENEFITS... AXLE WORKERS ARE ON STRIKE IN ATTEMPT TO PARTICIPATE IN THE DWINDLING CASH OF GM AND FORD.... UAW IS NOT DUMB UAW WILL RUN OUT WITH AS MUCH CASH BEFORE BANKRTUPCY... UAW IS NOT GONNA LET GM AND FORD BURN UP ALL THE CASH BEFORE BANKRUTPCY... UAW CANT WAIT TO GO HOME.... RIPPLES FROM GM AND FORD BANKRUPTCIES MAY HIT YOUR JOB OR NOT.... I WARN YOU TODAY I WILL WARN AGAIN AND AGAIN BEFORE IT IS TOO LATE DAYS IS NUMBERED AND DWINDLING FAST.. NOBODY KNOWS WHEN IT WILL HAPPEN ...
3-05-2008 @ 3:03PM
gumby said...
GM TOUTING OF FUTURE MODELS IS JUST CROCKS LIKE LUTZ SAID ABOUT CLIJMATE CHANGE... GM FUTURE MODELS IS MORE FALSE THAN CLIMATE CHANGES... GM AND FORD IS TRYING TO DISTRACT YOU WHLE THEY ARE BUSY WORKING ON BANKRUPTCY PROCEEDINGS.. IT DOESNT TAKE ONE DAY TO DO IT IT REQUIRE MONTHS TO CARRY IT OUT BEFORE THE FINAL ANNOUNCEMENT SOON....
3-05-2008 @ 3:11PM
Sheldon L said...
I guess Gumby is shorting the stock big time...
3-06-2008 @ 3:32PM
Gumby said...
GM and Ford had been squashing part suppliers for prices for decades so that they can have extra profits to feed voracious UAW pension fund and whatnots. now part suppliers went belly up GM and Ford is terminally ill now and they are busy writing wills for what is left for UAW ... Shareholders are not loved at all so they will be out of the wills.... it is a lengthy bankruptcy proceeding that will one day be declared... GM and Ford had been hoping for a turn around during past months yet car shoppers are flocking to Toyotaas and HOndas as usual ev4en in middle of recession.. GM and Ford cant survive with what market share they are enjoying even falling.... it is terminally over... Bush 's $145 billion wont save GM and Ford as they will go to Toyotas and HOndas hands down... Americans are too distracted by American Idol TV shows to show any care about GM and Ford.... Americans are ignorant iPods wearers by millions... Americans are too busy with cellphones all day... Americans are too cross eyed to pay attention anymore... Americans are going down the tubes who is caring??? Farewelll GM and Ford Iill miss y all bye bye bye RIP
3-06-2008 @ 3:42PM
Gumby said...
GM is not worth shorting until it is booted out of DJIA first... Simon Constable of Street.com was too dumb to suggest ALCOA be booted out of DJIA while leaving GM alone... Write to simon constable now and givev your piece of shit..
3-06-2008 @ 5:49PM
Jim from NY said...
My company owns and buys only american cars, but we are far from the norm today, i am both happy with the performance and the quality of the 2 - 2007 tahoes and the 2008 malibu we own, what ford and gm are suffering from is getting old,
meaning their marketing ideas and the dealer network that delivers there message to the consumer, i am an avid car collector and what i see is there sales force lacks fresh ideas, i'm sure there is not one sales person that would spend a sunday afternoon, showing off some of the new models at local car shows and cruise nights through out the country ... it just might increase their sales and put the products where they can be seen by people that talk cars and trucks,
3-07-2008 @ 9:40PM
dave said...
gm showed awhile back a 2008 or 09 trans am which looked really great, it was a modern version of the 1978. Why are they teasing the public and not putting their ideas into production. even yearone is offering a car called the bandit. they claim they are losing money. come on bring back your money makers, the crap they are producing now is not worth buying. disappointes former pontiac buyer
3-13-2008 @ 3:13PM
skunkworksjl said...
This is the biggest slap in the face. Wagner and the other board members take a paycut to help GM. Right !! From 2.5mil year / down to 1.2 mil year. I hope he and his family made it ok during this trying time. Meanwhile back in reality word.......I feel sorry for the GM workers. They are taking a beating in these forums. You people make me sick. The Workers you are talking about are Fathers, Mothers, Sons and Daughters. REAL People. Not Numbers. The people in this forum who see them as just Number are most likely brain washed, collage managerial degree toating so called experts. If you think for one minute that the Unions can help GM, Ford, Chrysler get back on top, your crazy. The Unions have bent over backwords, with paycuts, healthcare cuts. The cost of living keeps going up and their pay goes down. Hell the CEO of Delphi got a 5.2 mil bonus. For what? Running the worlds largets Autoparts maker into the ground. The only Entity that can save American Jobs is ...The Great US Government. The very same Government that created NAFTA, GAT and gave Communist China favorite trade Nation status. The very same Government that opened the boarders for Illeagles to come in at take American Jobs, Lower wages, ruin our Economy, elimanate the Middle Class. Now I hear about the Government wanted to creat the Amereuro to replace American Currency. US Government...You want to help REAL Americans out......end NAFTA, GAT ,close the boarders and kick out all the illeagle Allians. Get rid of the Federal Reserve and IRS. Have Congress, per our Consitution, Make our money. Bring all of our Military Home. If the other Countries want to kill eachother off. Who cares !!! They could give a Crap about us. God Bless America...And God please help us because our own Government is selling us out like a bunch of hookers.....