Diary

White House Tells GM's Wagoner To Step Down, Hmmm...

I was about to post this breaking news from MSNBC and then went back to the link and information had been added to the article saying that Wagoner was stepping down at the behest of the White House.

DETROIT – A person with knowledge of General Motors’ plans says Rick Wagoner will step down immediately as chairman and chief executive of the struggling Detroit automaker.

The person asked not to be identified because Wagoner’s plans have not been formally announced.

The move comes on the eve of President Obama unveiling his plan to reinvigorate the U.S. auto industry. Obama and other administration officials have said they would demand deeper restructuring from General Motors Corp. and Chrysler LLC before they would get any more government loans.

NBC’s John Yang reports that a senior administration official says Wagoner was asked to step down by the administration.

Both GM and Chrysler are living on a total of $17.4 billion in federal aid.

Obama just reincorporated General Motors into Government Motors.