Paul Batista
Instant Wheels Editor, InstantRiverside.com
General Motors Co., which accepted $6.7 billion in government loans, says it expects to return the money to the government by the end of June.
The confirmation came from Chairman and CEO Ed Whitacre Jr. (pictured) Tuesday morning. GM has experienced a cash burn of $88 billion since 2004, and Whitacre is technically the acting CEO. He replaced former GM CEO Fritz Herderson. Whitacre appeared briefly in commercials promoting the “new GM.”
Various news reports suggest that Whitacre wanted GM to move with greater agility, and that Henderson was too old school.
In the announcement, GM will make quarterly payments; a first $1.2 billion payment is to be made this month, according to Whitacre.
Currently the government owns more than half of GM. Whitacre made the announcement in Detroit.
He said GM’s board is looking for a permanent CEO replacement. On December 4, Whitacre was asked by Detroit News reporter Robert Snell “Where do things stand with the search for a new chief financial officer and have you narrowed the list of candidates to a few finalists?” Whitacre said “It’s a good question…we’re close and have narrowed it down and have a real good candidate. Could have some news in two or three weeks..”
Tuesday morning Whitacre spoke to the CEO question again saying that a search continues, and that auto experience would be helpful but it is not a requirement. Whitacre has remarked several times that he doesn’t know anything about cars. He’s a former AT&T executive.
On December 12, Whitacre did visit a GM plant in Flint, Michigan. According to a statement from GM, he wanted to “see what’s here,” as quoted from a company press release.
He also told employees “Nothing is going to happen if you don’t do the right thing,” as quoted in that same press release.
Tuesday, December 15, 2009
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