The next couple of weeks will probably the most critical for GM CEO Rick Wagoner. Wagoner, who has been with GM for 31 years, may have to step aside if he fails to secure financial aid that GM desperately needs. Even with all the cuts that GM has made, the company has failed to keep steady profits in North America since the first half of 2004.
Should Wagoner and his team fail to get support from outside sources, analysts on Wall Street expect GM to go bankrupt within the year.
The U.S. Treasury recently denied Wagoner a request of $10 billion in aid to purchase Chrysler LLC from Cerberus Capital Management. That put talks between GM and Cerberus on hold until after Election Day. If Wagoner fails to raise money now, GM creditors will move in, and Wagoner could be forced to step down.
Source: Free Press