Sen. Levin: Detroit’s Big 3 CEOs should resign if needed to get aid

Posted: Nov 17, 2008
Filed under: Chrysler, Ford, GM, Industry News

During an interview with NBC’S “Meet the Press” yesterday, Michigan Sen. Carl Levin said that CEO’s of the Big 3 should considering resigning their positions if that’s what it takes to convince Congress to quickly provide $25 billion in emergency loans.

“I’d be happy to tell (GM CEO) Rick Wagoner that he ought to consider resigning if that is the difference between getting this kind of support and not,” Levin said. “If it was the difference between getting this kind of support or not, obviously the management should consider resigning.

Unfortunately for Wagoner, all fingers are pointing at him as of right now. Wagoner has been CEO since 2000 and since 2004, GM has lost more than $70 billion. In an interview last week with Automotive News, Wagoner said that he is not planning on resigning.

Senator Richard Shelby of Alabama was a little more ‘outspoken’ about his perspective on the matter saying that the Big 3 are basically looking for a “blood transfusion.” Shelby said that $25 billion in aid will just postpone the inevitable for GM, Ford and Chrysler.

“They’re not building the right products,” Shelby said. “I don’t believe they’ve got good management. They don’t innovate. They’re a dinosaur in a sense.”

Let us know what you think about the Big 3 CEOs in the comments section below.

 

Source: Detroit News
Image Courtesy: Getty Images (via daylife)

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  • Steve
    I agree that our representatives are calling the kettle black, but that is Washington exposed for why people become politicians is because of power. I agree with what he said though. These bloated companies have had a lot of time to clean Detroit up. How about 30 years or so to get back on track. The only question I would be asking these executives is: "Will this $25 billion save your companies or will you still fail in the end? If no definitive plan is given, then the answer should be no.
  • John
    I agree. What good will the 25 billion do? Let them survive till February 2009? If they want the bailout, make them one company, join them together, and make it a government company......a government owned automaker....in this market, anything can be done and should be done to save the american b.utt. Let the whole thing be shut down.....get new models out in 6 months.
  • zermatt
    Senator Levin had no advice for the UAW?

    Well I hve some:

    If you want to keep your jobs cut your wages, bring benefits into line with what the rest of American workers receive, relax the oppressive work rules and kill off the job banks.

    Another thing that Senator Levin can do is to introduce legislation that will allow GM, Ford and Chrysler to overcome the state laws that inhibit the auto makers from being able to terminate dealers and shut down the dead car lines (Mercury, Buick, Saturn, GMC, etc.).
  • Perhaps it time for people like Carl Levin to resign. After all the U.S. government is only trillions more in debt under his leadership and many others like him. I certainly would suppport such a move for anyone in the Senate over 2 terms and anyone in congress over 10 years. The auto industry in the US only mirrors what has happened financially in government.
  • Rick Wagoner is probably the best CEO GM has had with the possible exception of Al Sloan. He took over long after the problems existed and has been paddling upstream to correct them. Getting Bob Lutz on board was a stroke of leadership. The real problem isn't wi the quality of vehicles but with the American public. The new products from GM such as the CTS and the Malibu more than compete in value and quality. The problem is getting Americans into showrooms after all the bashing the US makers has received from the media and now congress.
  • ty
    Seems like the only CEO that has the most sense is Mulally, GM & Chrysler should get rid of their CEO's though for someone better. Where is Iacocca when you need him.
  • Dane
    I wouldn't fire Ford's Boss... He is bringing in some amazing cars and trucks....

    It's going to change the playing field when they are here....
  • CBauch
    Yeah, I can't speak for Chrysler because I just don't pay attention to them, but I think Ford is in good hands with Mulally. GM, on the other hand, should drop Wagoner and bring in someone from outside the industry who also has experience turning companies around.
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