White House Making Strict Bailout Demands

In a somewhat surprising turn of events Rick Wagoner, the General Motors CEO expected to resign later this year, has stepped down effective immediately at request of the White House. The White House is planning to announce its auto recovery plans tomorrow. (Image: LeftLane News) According to reports, President Obama pushed for Wagoner's resignation before announcing his plans. General Motors has been in the middle of the auto bailout controversy, as it tries to recover from years in the red.

General Motors has tried to answer the calls for quality coming from car buyers, but has been unable to shine its tarnished brand. Under Wagoner, quality at General Motors has improved, but sales have continued to slide as a result of momentum towards key competitors. Unlike Ford, who has been able to turn around financially, General Motors has sought funding from congress to prevent the company from entering bankruptcy.

As I mentioned earlier, Obama is on the verge of announcing his administration's plan for the ailing industry. Chrysler and GM are both in desperate need of help, and we will see how the administration answers these calls tomorrow. I hope that GM gets some help, but really think Cerberus needs to step up and help its company, Chrysler. A private company shouldn't be getting public funds; it just doesn't make sense!

Wagoner has done relatively well in a bad situation, but for the sake of public perception this type of move might be needed. Out with the old, in with the new. I'll leave you with this video from Wagoner and other CEOs appeal to Congress for money: