The New GM: Rattner Gives an Update

Fritz Henderson To Take Over GM

Henderson, who is COO, will take over, at least in the interim.

An administration official confirmed that Mr. Wagoner was asked to step down to make way for ongoing restructuring within the company. Mr. Wagoner will be replaced, at least on an interim basis, by Frederick "Fritz" Henderson, the company's chief operating officer.

Mr. Wagoner was asked to step down on Friday by Steven Rattner, the investment banker picked last month by the administration to lead the Treasury Department's auto-industry task force. Mr. Rattner broke the news to Mr. Wagoner in person at his office at Treasury, according to an administration official. Afterward, Mr. Rattner met one-on-one with Mr. Henderson, who will fill in as GM's CEO.

GM didn't immediately return calls for comment. One longtime GM board member, Kent Kresa, declined to comment when reached by phone Sunday night. WSJ

Tomorrow:

In remarks Sunday, Mr. Obama said that he intends to extract "a set of sacrifices from all parties involved -- management, labor, shareholders, creditors, suppliers, dealers." The industry, he said on CBS's "Face the Nation," must "take serious restructuring steps now in order to preserve a brighter future down the road." The two companies "are not there yet," he added.

Mr. Wagoner's removal shows that the sacrifices could cut deep. The departure of the company's top executive promises to further shake up a company that has already been through considerable change over the past six months. The 56-year-old executive had been scrambling to craft a global strategy aimed at maintaining leadership in the global sales chase with Toyota Motor Corp., and making big profits in emerging markets.

But Mr. Wagoner's plans came crashing down in the second half of 2008 as the company ran short of cash and was forced to ask the federal government for tens of billions of dollars in aid. At the same time, his executive team started dismantling several parts of the company, including a plan to shed several U.S. brands, slow the pace of new-product introductions and sell off stakes in international operations. WSJ

Katie interviews Fritz:

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Auto Plan Out By March 31 Makers Hopeful

Bankruptcy is not the goal, says Steven Rattner, head of the auto task force. An upside to the AIG rage-- it has focused congress on AIG, allowing the auto task force to actually get some work done. Chrysler, barely making it, likely to partner with Fiat.

Obama's Auto Task Force Goes to Detroit

Will the task force recommend restructuring through bankruptcy? Sen. Richard Shelby of Alabama, from the right right right wing, says Obama should let the automakers fail. Yesterday he said Obama should let the banks fail. Shelby only has one answer for everything. The guy's too extreme for a conversation.

Obama Scraps Auto Czar Names Task Force

Apparently, people were ready for a czar. Instead, Geithner will be in charge of the task force:

The news, which administration officials e-mailed around last night, took industry executives by surprise. For days, they had been expecting an announcement that the job would go to celebrity financier Steven Rattner, the private-equity executive and former New York Times reporter. One exec told us: 'We would have preferred having a single, go-to person focused on the restructuring. This isn't bad, but the other would have been better.' Politico

Several people on a task force are better than a czar. It lessens the danger of getting suckered manufacturers. Obama's probably saving some cash too.

CNN: President Obama is creating a task force to oversee the restructuring of the auto industry, a senior administration official said Monday.

General Motors (GM, Fortune 500) and Chrysler LLC face deadlines Tuesday for submitting plans to the administration detailing how they can turn themselves around.

The task force will include members from the Departments of Treasury, Labor, Transportation, Commerce, and Energy, the National Economic Council, the White House Office of Energy and Environment, the Council of Economic Advisers and the Environmental Protection Agency, the official said.

It will be overseen by Treasury Secretary Tim Geithner and NEC Director Larry Summers and provide advice and analysis about the auto industry.

Geithner will oversee the loan agreements with the automakers.

In addition, Ron Bloom, a nationally recognized restructuring expert, will join the administration's team as a senior adviser at the Treasury Department, the senior administration official said.