GM Board Makes Grave Error, Names Whitacre CEO

Ed Whitacre, who is at least partially responsible for the problems at GM since it came out of Chapter 11, will add the CEO title to that of chairman. He has been interim CEO since pushing Fritz Henderson out of the job seven weeks ago. Whitacre made a big show about his plan to recruit a world-class executive to run the GM. Instead, it appears that Whitacre has effectively appointed himself to the position without an objection from the full board

Whitacre has been GM chairman since July, so he carries some of the blame for whatever he perceives was wrong with Henderson’s time at the helm.

Whitacre says that GM will be profitable this year. If so, it is primarily because of Henderson. Whitacre also says GM will pay back the $6 billion it still owes the Treasury by mid-year. Once again, most of the work to set up the No.1 US car company to be able to do this was engineered by Henderson.

Whitacre will take the credit for GM’s turnaround, but Henderson will have done most of the work.

Douglas A. McIntyre