Tuesday, February 7, 2006
Reasons Why Wagoner Must Go:
10. CAR SALES
Market share down again, year after year.
9. SELLING FINANCING (instead of cars)
Didn't work with Olds...not working now.
8. DEBT DOWNGRADED TO JUNK
Questions of financial stability.
7. DISMAL PROFITS AND RECORD LOSSES
Made $1 Billion annually in 1950's
6. ASSET SALES
Remember Detroit Diesel, American Axle, Frigidaire, GMAC?
5. UNDERUTILIZING CAPITAL
Unprofitable foreign operations and alliances FIAT!!!!
4. LOSING CUSTOMERS UNNECESSARILY
We do the dumbest things (ie GM Card)
3. CORPORATE GOVERNANCE
Auditor/Consultant relationships, Off balance sheet accounting
2. COMPETITION GROWING STRONGER
Increased capacity and higher demand threatens our position.
1. MARKET CAP
Once proud leader, now an also ran.
Since becoming CEO, Wagoner has lost over $50 Billion in value.
If your pitcher is getting bombed in the fifth inning, you motion to the bullpen. It's time for Mr. Wagoner to hit the showers. While he claims to have no plans for bankruptcy, he certainly showed his colors by implementing a supplemental retirement plan for himself, payable even if GM goes belly up. Rather than a 50% pay cut, he should have been put in the jobs bank.
Time to say goodbye to "Red Ink Rick"!