GM CEO Stepping Down Soon, Chrysler Insolvent Again
The weekend of news when it comes to GM and Chrysler...
March 29, 2009
It's been a busy weekend here at GMInsidenews. First we're told that a bankruptcy deadline is going to be put in place for General Motors and Chrysler LLC by the U.S. government tomorrow, now we hear more news. Today sources leaked information that GM CEO Rick Wagoner is going to be stepping down from the company. GMI sources have confirmed that Rick will be stepping down, supposedly to "retire" on March 31st. CNBC is reported that senior officials at the White House suggest that the government kindly suggested that Wagoner step down, but it was not "forced." It is expected that GM COO Fritz Henderson will be his replacement.
In related news, GMI has been told that Chrysler LLC is essentially insolvent at the moment; operating with $1.8 Billion in cash on hand, with at least $2.3 Billion needed to maintain normal operation. It is expected that the U.S. government will throw them a lifeline of funding to stay going until the new bankruptcy deadline. GM will also need more funding if they reach an agreement with their bondholders. GM currently has about $13.5 Billion in cash on hand, with a cash minimum of $11 Billion needed for daily operation.
For more details on Chrysler and GM: Chrysler Running out of Cash, GM Will Need More too