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Fallout From Wagoner Ouster: GM, Ford Shares Plummet

The markets are punishing shares of Detroit automakers GM and Ford following the White House ouster of GM chief executive Rick Wagoner.

Shares of GM are trading down 25 percent, while shares of Ford are trading down more than 7 percent. Chrysler is a privately held company (Cerberus Capital) and therefore does not trade publicly.

President Obama is discussing the automakers' plight now at the White House. Yesterday, he said that GM's and Chrysler's restructuring plans have not yet met the administration's requirements -- at least in Obama's view -- to run more efficiently.

Check back here to read what the president had to say.

-- Frank Ahrens
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By Frank Ahrens  |  March 30, 2009; 11:11 AM ET
Categories:  The Ticker  | Tags: Chrysler, GM, Rick Wagoner  
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Next: Obama: GM, Chrysler May End Up In Bankrutpcy

Comments

Obviously, the markets are in panic. Wagoner was as dull as anyone can be, but the idea of having Tim Geithner, Nancy Pelosi, or Barney Frank running GM is terrifying.

Posted by: tropicalfolk | March 30, 2009 11:50 AM | Report abuse

COMMUNITY ORGANIZER Obama and Tiny Tim AIG Geithner have used their vast automotive knowledge and experience to displace industry expert Wagoner.....

- Wagoner was just heralded by Professor Morici (CBO Contributor and Automotive expert) as a near genius in selling and manufacturing cars while shackled with a truly stubborn and cumbersome UAW union, -- which gave GM a $2000 price disadvantage per vehicle.

- So instead of firing Labor election contributor and major democrat sponsor and benefactor Gettlefinger - the SPECIAL OLYMPIC Team fires the guy that is capable of fixing the problem.

- Maybe these rocket scientists will bring in Dr. Phil to solve the Afghan resurgence problem - he knows as much about cars as Lil Tim Giethner

Posted by: highkey11 | March 30, 2009 12:23 PM | Report abuse

It would be nice to have an in depth article about why the outlook for Ford gets hit so hard whenever GM gets bad news (is it because of similar suppliers, similar union contracts, etc?). Because it's a little confusing to me.

Posted by: darkhorse3113 | March 30, 2009 12:55 PM | Report abuse

COMMUNITY ORGANIZER Obama and Tiny Tim AIG Geithner have used their vast automotive knowledge and experience to displace industry expert Wagoner.....

- Wagoner was just heralded by Professor Morici (CBO Contributor and Automotive expert) as a near genius in selling and manufacturing cars while shackled with a truly stubborn and cumbersome UAW union, -- which gave GM a $2000 price disadvantage per vehicle.

- So instead of firing Labor election contributor and major democrat sponsor and benefactor UAW Gettlefinger - the SPECIAL ECONOMIC OLYMPIC Team fires the guy that is capable of fixing the problem.

- Maybe these rocket scientists will bring in Dr. Phil to solve the Afghan resurgence problem - he knows as much about the military as Lil Tim AIG Giethner knows about cars.

***AND remember without DEMOCRATS politics would not be funny


Posted by: highkey11 | March 30, 2009 12:58 PM | Report abuse

I guess GM's plan to reinvorgorate it's sales (from a June 2005 article in U.S. News and World Report by GM exec Richard Newman) hasn't quite worked out. Perhaps their corporate restructuring should include removing the GM badge from their cars at this time? Yes, that will surely save the company!

"GM has been primping its corporate identity, too, sticking a small GM badge on every vehicle it produces, to make sure buyers associate cool cars like the Chevy Corvette and the Cadillac SRX with the corporate parent. "Kind of like 'Intel inside,' " says LaNeve, though he notes that if the badge is a bust, the plan can easily be reversed."

Posted by: usblues1 | March 30, 2009 1:35 PM | Report abuse

highkey11 wrote:

"Wagoner was just heralded by Professor Morici (CBO Contributor and Automotive expert) as a near genius in selling and manufacturing cars "

___________________________________________

Dr. Peter Morici of the University of Maryland is a well known far right wing economist/pundit. Among his past articles are this one:

Should Rick Wagoner Go?
Baltimore Sun, March 19, 2006

His conclusion?

As Lee Iacocca used to say, "Lead or get out of the way."
We know Wagoner can't lead, so Rick, please exit stage left.


Dr. Morici's "expertise" is in international trade, not the US automobile industry. The main thrust of his economic theory is that outsourcing labor and unfettered free trade are the answers to all of the world's financial woes.

People like Dr. Morici are responsible for building a US economy that relies upon smoke and mirrors rather than the production of things. If you believe that we can survive as a nation by simply shuffling money around, Morici is your guy. If you think, like I do, that producing actual goods and products is the key to our long term prosperity, then Morici and his ilk are ones whose opinions are to be ignored.

Back to the original subject at hand, Wagoner has done nothing of substance to improve GM in his decade at the helm. Nardelli is just as big a failure at Chrysler as he was at Home Depot. Mulalley seems to have Ford on the right track, but if GM and/or Chrysler go down the tubes he may not be able to continue the good work he has done for the last three years.

Posted by: mhhaggard | March 30, 2009 2:51 PM | Report abuse

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