Former Wall Street investment banker Steven Rattner recently quit his job as the auto czar after five months of advising President Barack Obama on what to do with the auto industry. Rattner now spends his time at home helping his son with his schoolwork and spending more time with his family.

Rattner, who is also a former New York Times reporter, is now considering writing a book about his time spent in Washington. The basis of the book would be the 10,000-word article he wrote for Fortune for the Nov.9 issue of the magazine. The article was cut down to 6,000 words.

One of the most interesting parts of Rattner’s article for Fortune is when he gives a behind-the-scenes look at the ouster of GM’s Rick Wagoner.

Here is a quick excerpt from Rattner’s article:

Everyone knew Detroit’s reputation for insular, slow-moving cultures,” Rattner wrote. “Even by that low standard, I was shocked by the stunningly poor management that we found, particularly at GM, where we encountered, among other things, perhaps the weakest finance operation any of us had ever seen in a major company.

For example, under the previous administration’s loan agreements, Treasury was to approve every GM transaction of more than $100 million that was outside of the normal course. From my first day at Treasury, PowerPoint decks would arrive from GM (we quickly concluded that no decision seemed to be made at GM without one) requesting approvals. We were appalled by the absence of sound analysis provided to justify these expenditures.

The cultural deficiencies were equally stunning. At GM’s Renaissance Center headquarters, the top brass were sequestered on the uppermost floor, behind locked and guarded glass doors. Executives housed on that floor had elevator cards that allowed them to descend to their private garage without stopping at any of the intervening floors (no mixing with the drones).

In my relatively few interactions with chairman and CEO Rick Wagoner, I found him to be likable, dedicated, and generally knowledgeable. But Rick set a tone of “friendly arrogance” that seemed to permeate the organization.

You can read more over at CNNMoney.com.

- By: Omar Rana

In a payout package outlined in a regulatory filing today with the U.S. Securities and Exchange commission, former General Motors CEO will get almost $8.2 million under a pension agreement plus a $74,030 annual pension. While that may anger many of you taxpayers, the amount is far less than what Wagoner was originally supposed to get before GM made drastic cuts in pensions for former executives.

Wagoner originally had a pension with total benefits worth $22.1 million as of December 31. The pension was to be paid in five annual pension payments of an outstanding $4,523,400. Under the new agreement, Wagoner will now get $1,636,105 for five years and $74,030 a year for the rest of his life (still a lucky guy).

Fired by President Barack Obama in March, Wagoner will remain on GM’s payroll at $1/a year and will officially retire on August 1.

Other pension recipients who receive a yearly payment of $100,000 or less will lose nothing.

- By: Omar Rana

Source: Detroit News

General Motors CEO Fritz Henderson confirmed Friday that pensioners whose yearly payments exceed $100,000 will see a dramatic reduction in their pensions – those whose yearly payments are less than $100,000 will lose nothing. GM’s former CEO Rick Wagoner, who was fired by President Barack Obama, is expected to lose $15 million

Rick Wagoner, 56 and a 32-year veteran of GM, had a pension with accrued benefits totaling $22.1 million as of Dec. 31. The pension was to be paid in five annual payments of $4.52 million.

The former GM would now lose $2.99 million a year for five years – almost $15 million.

The pension announcement comes as another high-profile GM executive, Global Purchasing Group Vice President Bo Andersson, announced he is leaving. Andersson, 53, will pursue other career opportunities, joining Vice Chairman Bob Luz and Cadillac Chief Mark McNabb, who resigned last month.

- By: Omar Rana

Source: Detroit News

Former General Motors CEO Rick Wagoner has willingly accepted our offer to become an editor of eGMCarTech. Wagoner will provide us with detailed reports on what really goes on in the minds of GM executives and why they still rely on gas-guzzling models instead of focusing on small-cars.

Wondering why the Chevrolet Cruze is already on sale in Australia and in Europe but won’t go on sale in the U.S. until late 2010 (we’ve been wondering that forever)? Still don’t believe that the Chevrolet Volt will put GM ahead of its rivals in the ‘green-mobile’ wars? Will Fritz Henderson actually save GM? Wagoner will answer all these questions and more.

As with his former position at General Motors, Rick Wagoner has accepted a $1 a year salary here at eGMCarTech.

So join me in welcoming Wagoner and say hello in the comments section below.

Update: Wagoner will take on his new position at eGMCarTech starting April 1, 2009.

- By: Omar Rana

Unlike former CEO Rick Wagoner, Henderson won’t be getting a $1 salary as GM stated when it won a $13.4 billion loan from the U.S. government in December 2008.

Henderson said today that while he is now CEO of General Motors, his pay has not changed from his former position as GM president and chief operating officer. As a part of the automaker’s turnaround plan, Henderson’s $1.8 million salary was reduced 30 percent to $1.3 million – and that is the amount he will get as CEO. 

“I am basically today where I was Thursday,” Henderson said. “That’s where I am today.”

Interestingly, Henderson said that Wagoner still remains an employee of GM but will not be consulting him on any decisions.

Henderson said that if GM receives any additional aid from the U.S. government his salary will be limited to $500,000 along with other executives. Anything on top of the $500,000 would come in the form of the company’s stock, which shareholders will have the right to vote on the package.

- By: Omar Rana

Source: Free Press

During his first press conference as CEO of General Motors, Firtz Henderson said that he plans to meet Obama’s mandate to restructure the struggling automaker even if it means going into bankruptcy.

“We could not contemplate bankruptcy if we didn’t have the government there to provide the finances and the protection,” Henderson said.

According to Automotive News, Fritz said that with the support of the U.S. Treasury Department, GM has a better chance to survive a bankruptcy filing. However, Henderson said that he will do all he can to secure concessions from GM bondholders and the UAW in the 60-days provided to GM to restructure itself.

“We will get the job done,” Henderson said. “We will do it out of court, or we will do it in court.”

He said that a team of advisers is currently studying bankruptcy options and if GM does file, he wants the company to exit as quickly as possible.

- By: Omar Rana

As most of you are aware by now, President Barack Obama and his automotive task force today flunked General Motors’ and Chrysler’s viability plans that were submitted on Feb 17.

“Neither goes far enough to warrant the substantial new investments that these companies are requesting,” Obama said. “They must produce plans that would give the American people confidence in their long-term prospects for success.”

While Obama is winning applause from frustrated U.S. taxpayers, analysts and critics called his decision to fire GM’s CEO and pushing Chrysler to merge with Fiat a “heavy-handed power grab.” Obama has also threatened to let both automakers go into bankruptcy. The government will fund GM’s operations for 60-days until the company comes up with a better restructuring plan. Chrysler has 30 days to decide to partner with Fiat after which they will receive $6 billion to support the partnership.

According to Reuters experts called Obama’s decisions today the “most significant presidential intervention in the private sector since Harry Truman tried to seize the steel industry during the Korean War in 1952.”

So do you support Obama and the government’s intervention with the auto industry? Let us know by participating in the poll below. If you have something more to say, drop a line or two in our comments section after the jump.

- By: Omar Rana

According to documents reviewed by ABC News, Rick Wagoner will walk away with a $20 million retirement package. Even though the U.S. Treasury has banned GM from giving retirement packages to Wagoner or any other senior executives, Wagoner is eligible to collect $20 million in retirement benefits.

Wagoner was asked to resign his position of Chief Executive Officer of General Motors over the weekend by the Obama administration as a condition for the company to receive additional government aid.

The auto-task force said that the U.S. Treasury will fund GM for 60 days while it comes up with another restructuring plan.

- By: Omar Rana

Source: ABC News (via Jalopnik)

President Barack has just wrapped up his press conference on the government’s decision on the viability plans submitted by GM and Chrysler on Feb 17th after both automakers received $17.4 billion.

“Neither goes far enough to warrant the substantial new investments that these companies are requesting,” Obama said. “They must produce plans that would give the American people confidence in their long-term prospects for success.”

Obama warned that the Michigan automakers may be forced into a quick bankruptcy. What do we mean by a “quick bankruptcy?” Obama’s auto task force said that a bankruptcy filing may possibly the “best chance of success” for GM and Chrysler. They said that the bankruptcy could last for as little as 30 days.

“What I am not talking about is a process where a company is broken up, sold off, and no longer exists,” Obama said. “And what I am not talking about is having a company stuck in court for years, unable to get out.”

The government will be unveiling a new program that backs warrantees of GM and Chrysler vehicles if either automaker fails.

For Chrysler, the government will provide $6 billion if the proposed partnership between it and Fiat is finalized. For GM, the government said it will continue to fund operations for the next 60 days while it develops another restructuring plan.

You can read statements by both automakers on President Barack Obama’s speech below.

General Motor’s Response:

GM Statement on Auto Industry Restructuring

Today’s announcement by President Obama begins a new era for the U.S. auto industry. It also marks a defining moment in the history of General Motors.

The U.S. Treasury will provide working capital financing for GM for 60 days while GM completes a more accelerated and aggressive restructuring to put the company on sound long-term financial footing. We understand the historic opportunity this presents, and we are fully committed to successfully completing the reinvention of GM.

As President Obama said today, the success of this reinvention is vital for GM, for the U.S. and global economies, and for the millions of employees, suppliers, dealers, retirees and others who depend on the company.

During the next 60 days, GM will address the tough issues to improve the long-term viability of the company, including the restructuring of the financial obligations to the bond holders, unions and other stakeholders. Our strong preference is to complete this restructuring out of court. However, GM will take whatever steps are necessary to successfully restructure the company, which could include a court-supervised process.

The men and women of GM, including our dealers, suppliers and other key partners, know what we must do to accomplish this task. We are fully committed to making this successful. We owe that to the GM community, to our customers, and to the U.S. taxpayers, who are providing support during this exceptionally challenging time.

Quotes attributable to Fritz Henderson, GM CEO

“The U.S. Treasury has said that it strongly believes that a substantial restructuring will lead to a viable GM. Over the next 60 days, we will work around the clock, with all parties, to meet the aggressive requirements that have been set by the Task Force, and to make the fundamental and lasting changes necessary to reinvent GM for the long-term.”

“We have significant challenges ahead of us, and a very tight timeline. I am confident that the GM team will succeed, and that a stronger, healthier GM will play an important role in revitalizing America’s economy and re-establishing its technology leadership and energy independence.”

“The administration has made it clear that it expects GM to expand and accelerate its restructuring efforts. I want the American people to know that we understand and accept this guidance. The road is tough, but the ultimate goal – a leaner, stronger, viable GM – is one we share.”

General Motors Corp. (NYSE: GM), one of the world’s largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 243,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

GM is the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea, and has product, powertrain and purchasing collaborations with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. GM also has advanced technology collaborations with Chrysler LLC, Daimler AG, BMW AG and Toyota Motor Corp. and vehicle manufacturing ventures with several automakers around the world, including Toyota, Suzuki, Shanghai Automotive Industry Corp. of China, AVTOVAZ of Russia and Renault SA of France.

Genuine GM Parts and accessories are sold under the GM, GM Performance Parts, GM Goodwrench and ACDelco brands through GM Service and Parts Operations, which supplies GM dealerships and distributors worldwide. GM engines and transmissions are marketed through GM Powertrain.

Chrysler’s Response:

Chrysler LLC Statement in Response to the Announcement by the Administration, U.S. Treasury and President’s Auto Task Force attributed to Chrysler LLC Chairman and CEO, Bob Nardelli

Auburn Hills, Mich., Mar 30, 2009  -  Today marks an important milestone for Chrysler LLC. We are encouraged by the commitments of the Administration, U.S. Treasury and President’s Auto Task Force to the American automobile industry and Chrysler’s viability, with a Fiat alliance.

We are pleased that Chrysler, Fiat and Cerberus have reached agreement on a framework of a global alliance, supported by the U.S. Treasury. Chrysler has consistently said that the alliance with Fiat enhances its business model that expands its global competitiveness. We appreciate the willingness of the Task Force, along with industry and financial experts, to consult closely with us in order to achieve this significant step.

By providing Chrysler with product and platforms, technology cooperation and global distribution, Fiat strengthens Chrysler’s ability to create and preserve U.S. jobs; gives U.S. consumers more choices for environmentally advanced vehicles; gives its dealers more of the products they need to be successful; helps stabilize the supplier base; and allows Chrysler to pay back government loans sooner.

Chrysler has had a series of very constructive discussions since our plan was submitted February 17, including weekly face-to-face meetings with the Task Force. We have been impressed by their speed, diligence, good faith and strong grasp of the difficult issues our industry faces in this financial crisis. This is evidenced by the U.S. government’s initiatives to support consumer warranties and suppliers, as well as their appointment of Dr. Edward Montgomery, Director of Auto Recovery.

I want to personally assure all of our customers, dealers, suppliers and employees that Chrysler will operate ‘business as usual’ over the next 30 days. While we recognize that we still have substantial hurdles to resolve, Chrysler is committed to working closely with Fiat, the Administration, U.S. Treasury and the Task Force to secure the support of necessary stakeholders. If successful, the government will consider investing up to the additional $6 billion requested by Chrysler to help this partnership succeed. 

- By: Omar Rana

Source: Detroit News

Rick Wagoner has released an official statement as he steps aside as Chief Executive Officer of General Motors.

GM Message from Rick Wagoner

On Friday I was in Washington for a meeting with Administration officials.  In the course of that meeting, they requested that I “step aside” as CEO of GM, and so I have.

Fritz Henderson is an excellent choice to be the next CEO of GM.  Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts.  His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM’ers worldwide to succeed.  I wish him well, and I stand ready to support him, and interim Non-Executive Chairman Kent Kresa, in every way possible.

I also want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO.  I deeply appreciate the excellent counsel and commitment of the GM Board and the strong support of our many partners including our terrific dealers, suppliers, and community leaders. I am grateful as well to the union leaders with whom I have had the chance to work closely to implement numerous tough but necessary restructuring agreements. 

Most important of all I want to express my deepest appreciation to the extraordinary team of GM employees around the world.  You have been a tremendous source of inspiration and pride to me, and I will be forever grateful for the courage and commitment you have shown as we have confronted the unprecedented challenges of the past few years.  GM is a great company with a storied history.  Ignore the doubters because I know it is also a company with a great future.

- By: The Daily Auto Editor

After all the reports yesterday about GM’s Rick Wagoner resigning his position CEO as a requirement set by the government to get additional aid – General Motors has released an official statement about the changes to its executive team lineup.

Wagoner, who has been CEO since 2000 and became chairman in 2003, will step down both roles effective immediately. Taking his position as CEO will be Fritz Henderson, GM president and chief operating officer. Kent Kresa, a director at GM, will take interim non-executive chairman of the board of directors.

Click through for the official press release.

Press Release:

GM Statement on Officer and Board Announcements

GM is announcing the following changes in the corporate officers and the board of directors:

    Rick Wagoner is stepping down as chairman and CEO, effective immediately. Wagoner, 56, was named president and CEO in 2000, and assumed the role of chairman in 2003.

    Fritz Henderson, GM president and chief operating officer, will serve as CEO.   Henderson, 50, was named to his current position in 2008.  He was previously vice chairman and chief financial officer.

    Kent Kresa, chairman emeritus, Northrop Grumman Corporation, has been named interim non-executive chairman of the board of directors.  Kresa became a GM director in 2003

GM is awaiting further announcements by the President and the Task Force on Automotive Reconstruction, and we will have additional comments at that time.

GM Board of Directors statement, attributable to Kent Kresa, Chairman

“The Board has recognized for some time that the Company’s restructuring will likely cause a significant change in the stockholders of the Company and create the need for new directors with additional skills and experience. The Board intends to work to nominate a slate of directors for the next annual meeting that will include a majority of new directors taking into account the addition of new directors, retirement, and decisions by individual directors not to stand for re-election, although the specific individuals who will be nominated or choose not to run or leave the board are not yet known.”

- By: The Daily Auto Editor

Just a day before President Barack Obama announces his plans to help General Motors and Chrysler LLC, Rick Wagoner has resigned his position as Chief Executive Officer of GM. According to a report by Reuters, Wagoner resigned after being pressured from the Obama administration on Sunday as the government prepares to announce the second round of bailout money for the Detroit automaker.

It was reported on Friday, that Rick Wagoner was in Washington, D.C. meeting with Steve Rattner and the auto task force. We’re guessing the decision to resign his position as CEO started then. GM has yet to release any official statement but a White House official says that the resignation was done at the request of the Obama administration.

Obama said earlier today that GM and Chrysler have not done enough to prove their viability since receiving a $17.4 billion bailout in December.

A successor to Wagoner, who has been CEO since 2000, will most likely be announced tomorrow following Obama’s announcement on what extra help will be provided to the auto industry.

- By: Omar Rana

Source: Reuters

GM’s CEO Rick Wagoner said Tuesday that increasing the federal gas-tax to guarantee a minimum price of $4 a gallon is “worth of consideration.” Many industry leaders have aggressively opposed a gas-tax hike but GM, which is betting its future on high-priced, fuel-efficient vehicles, feels that it will push new car shoppers to purchase hybrid or electric-vehicles.

On Tuesday, the average price of gasoline was $1.91 according to the Energy Information Administration. To hit $4 a gallon, the federal gas-tax would have to increase to more than $2 per gallon.

“Everybody talks about $4 a gallon because, until gas prices hit $4, nobody saw any shift in consumer behavior,” said Greg Martin, a GM spokesman. “Only then did people put fuel efficiency front and center.” 

Your thoughts? Have your say in the comments section below.

- By: Omar Rana

Source: Washington Times (via AutoBlog)

Speaking to a group of reporters during a breakfast sponsored by the Christian Science Monitor, GM CEO Rick Wagoner said that restructuring the company outside of bankruptcy court is the best option. However, Wagoner acknowledged that a pre-planned bankruptcy filing could work.

“If we can accomplish 99 percent outside of court that we would inside of court, why in the world wouldn’t we do it outside of court? To save the risk and, by the way, at a much lower expense,” Wagoner said. “I think it makes sense for everyones perspective to do this outside of court. We have to show we can do that though.”

The GM CEO said that the company has been studying pre-packaged bankruptcy filing which could see the company emerge in 30 or 60 days. Wagoner said that if that doesn’t happen, the move could mean a long period of bankruptcy where GM would eventually have to liquidate.

He said that General Motors executives are in daily contact with Obama’s auto task force and have been working with the UAW and bondholders on necessary concessions to make the company viable once again.

- By: Omar Rana

Source: Detroit News

General Motors CEO Rick Wagoner was one of the corporate executives who attended a meeting today with President Barack Obama. During a Business Roundtable discussion, Obama told the leaders of top American companies to “support policies that end the cycle of economic boom-and-bust.”

According to Automotive News, in an offhand comment, Obama told the executives that he doesn’t want the U.S. government controlling the economy. “I want you guys to do your thing,” Obama said.

A spokesman from GM said that he did not believe that any specific auto industry issues were bought up during the meeting.

Although we’re guessing Obama was pretty happy to see Wagoner after GM announced today that it did not need $2 billion in government loans this month. No word on whether other Detroit executives attended the meeting.

By: Omar Rana

While some of you are wondering where our visitor zermatt is (zermatt being a very analytical individual who we feel is a great addition to our community), we’re guessing he’s unwinding after a very tiring visit to Detroit on Monday where President Obama’s auto task force visited General Motors and Chrysler.

Either way, the auto task force has left Detroit and we’re all left wondering – “so what did they think?” Are they going to call back $17.4 billion or are GM and Chrysler going to get additional loans that can total up to $21.6 billion.

According to AutoObserver, the auto task force, none of whom have any auto industry experience and happen to own foreign made vehicles, are not providing any hint about their thoughts on their Detroit visit or what they plan on doing for GM and Chrysler’s financial situation once the March 31 deadline arrives.

All we know is they visited GM executives and test drove a Chevrolet Volt, visited Chrysler’s Nardelli/LaSorda/Press and a Dodge pickup plant, followed by a two-hour meeting with UAW President Ron Gettlefinger.

Obama’s administration told reporters that the trip “was a success and the White House understands the need for urgency and deliberation and the task force will work ‘around the clock’ on industry issues.”

GM’s said that it was “pleased to host the task force so they could experience firsthand the new products and technologies that are an integral part of GM’s near- and long-term competitiveness. We look forward to continuing to support the efforts of the task force as they move quickly to address their critical tasks.”

Guess we’ll all find out the outcome on March 31.

Source: AutoObserver

According to documents filed with the Securities and Exchange Commission today, General Motors’ CEO Rick Wagoner was paid a total of $5.5 million in 2008. Wagoner received a salary of $2.1 million and earned no bonuses last year.

His total 2008 compensation is down from his $14.1 million compensation in 2007, and 2009 isn’t looking any better for the GM CEO. Wagoner will be working for $1 in 2009 as a part of the company’s deal with the U.S. government.

COO Fredrick Fritz Henderson received $1.7 million in 2008 down from $7.2 million in 2007. CFO Ray Young raked in $1.5 million last year and will take a 30 percent pay cut along with other GM executives on May 1.

Source: AutoObserver

Following Chrysler’s meeting with Obama’s auto team yesterday, General Motors today wrapped up a 6-hour meeting with members of U.S. Treasury Department and the White House National Economic Council. GM’s CEO Rick Wagoner, COO Fritz Henderson and CFO Ray Young were among the executives that attended the meeting. Among the points discussed were GM’s request for an additional $16.6 billion in aid. Of course, we’re pretty sure that GM’s fourth-quarter results were also discussed.

According to GM spokesman Greg Martin, the meeting “was just the beginning of the hard work ahead for GM and the President’s team.”

“We found a genuine willingness among the Task Force to understand our business, industry challenges, and GM’s restructuring plan,” said Martin. ”We look forward to working closely with the task force as we continue our efforts to transform GM”

Steve Rattner, the head of the auto team and Ron Bloom, a special adviser to the Treasury on autos, attended as well.

We’ll bring you more details as we get them.

Source: Detroit News