GM Chairman Whitacre Named Interim CEO
General Motors Co. Chairman Ed Whitacre, poised to spend as long as a year as interim chief executive officer, may end up hiring himself, reported Bloomberg.com.
A permanent successor to Fritz Henderson, who was ousted Dec. 1, will have to work under federal pay limits while facing hurdles such as ending annual losses that began in 2005. That may make Whitacre a good fit, according to recruiters, former GM director Jerome York and one of the chairman’s Texas associates.
Whitacre told employees yesterday that GM’s board hired a search firm to scour the globe for candidates to run the biggest domestic automaker. The effort may take as long as a year, said Whitacre, who retired in 2007 as chairman and CEO of AT&T Inc., the largest U.S. phone company.
The Treasury’s auto task force selected Whitacre to lead a revamped board when GM exited bankruptcy on July 10 backed by $50 billion in government restructuring aid.
Chris Preuss, a GM spokesman, said Whitacre wasn’t available for an interview yesterday. He declined to comment on whether Whitacre wants to retain the post or would be willing to be CEO on a permanent basis.
Whitacre told employees in a 30-minute broadcast yesterday that he hadn’t expected to become CEO and there are still a lot of unknowns about a search that “may take a year.”
“I’m here willingly and I want you to know that, OK?” he told employees. “I’m not dragging, kicking, screaming. I want to be here and I want to do what I can to help this company.”
That could mean staying on longer than a year as chief, said Sheldon Stone, a managing director at consultant Amherst Partners LLC in Birmingham, Michigan. GM needs a CEO who has steered a Fortune 50 company through significant change, has excellent leadership capabilities and learns quickly, he said.
“I wouldn’t be surprised if we see Ed in there for one or two years,” Stone said. “He has those skill sets, and that is going to be a difficult search.”
More Industry

California Calling? What's Up With the State's New CARS Act?
Should auto dealers outside of California be concerned about its new price-transparency law? Yes, and you can guide them in the right direction.
Read More →
Tennessee Transaction Latest in Buy-Sell Flurry
Four stores move from a longtime local family business to one of the country’s biggest automotive groups as part of the industry’s continued consolidation.
Read More →
SUV Joins Safety Rankings
Thanks to a seat belt redesign, the Nissan Kicks has earned a Top Safety Pick award from the Insurance Institute for Highway Safety.
Read More →
Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →