General Motors CEO Search Abandoned for “Stability”

 

By Posted 26 Jan 2010, 09:53

General Motors (GM) has been searching for a CEO for some time now, but the struggling U.S. automaker has decided to abandoned its search and give the position to chairman, Ed Whitacre, which we covered in a recent post. GM hopes that this will help to restore “stability” in the company.

Former telecom boss, Whitacre has no experience in the automotive industry, but General Motors are confidant that he will move the company forward. The automaker also stated that they would pay back the $8.1bn in loans from the U.S. government by June of this year.

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The Guardian said that the leadership of GM has been in doubt since former CEO Fritz Henderson parted with the company back in December 2009. The reason was that General Motors were not happy with the speed that Henderson was taking getting the company back on their feet.

The salary of the new Chief Executive has not been revealed to us, but Whitacre did say that he took the job as a service and not for personal gain. There has been no indication as to how long he will hold on to this position, but it looks as though it will be long term, only if they continue to work themselves out of debt.

If GM does manage to repay all of its loans back, then the automaker could be set for a great year. There is already confidence in the auto market, as Ford has now been making a profit, which must really hurt General Motors.