GM CEO Wagoner out at Obama's request

Tom Krisher of the Associated Press reports that General Motors CEO Rick Wagoner will step down from his post immediately, based on information given to him from an unnamed source. The news comes on the eve of President Obama's expected announcement of a deadline for General Motors and Chrysler to finalize their restructuring terms or enter government-backed, pre-packaged Chapter 11 bankruptcy. There's no official confirmation from GM at this time. The only announcement the automaker made today was a brief, two-sentence statement in response to the anticipated Obama announcement, saying that they continue to work with the President's automotive Task Force.

The Detroit Free Press reports that the move was specifically requested by the Obama administration as part of the rescue plan that will be announced tomorrow. Wagoner reportedly agreed, and COO Fritz Henderson would appear to be in line to be the new top guy at the RenCen. No official word on that so far, either.

Get ready a big week of auto news, kids. The NY Auto Show just got a whole lot more interesting, too. Stay tuned.

UPDATE: Official message from Rick Wagoner and GM's announcement of Board restructuring after the jump.

[Source: Associated Press, Freep]


GM Message from Rick Wagoner

On Friday I was in Washington for a meeting with Administration officials. In the course of that meeting, they requested that I "step aside" as CEO of GM, and so I have.

Fritz Henderson is an excellent choice to be the next CEO of GM. Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts. His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM'ers worldwide to succeed. I wish him well, and I stand ready to support him, and interim Non-Executive Chairman Kent Kresa, in every way possible.

I also want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO. I deeply appreciate the excellent counsel and commitment of the GM Board and the strong support of our many partners including our terrific dealers, suppliers, and community leaders. I am grateful as well to the union leaders with whom I have had the chance to work closely to implement numerous tough but necessary restructuring agreements.

Most important of all I want to express my deepest appreciation to the extraordinary team of GM employees around the world. You have been a tremendous source of inspiration and pride to me, and I will be forever grateful for the courage and commitment you have shown as we have confronted the unprecedented challenges of the past few years. GM is a great company with a storied history. Ignore the doubters because I know it is also a company with a great future.


GM Statement on Officer and Board Announcements

GM is announcing the following changes in the corporate officers and the board of directors:

Rick Wagoner is stepping down as chairman and CEO, effective immediately. Wagoner, 56, was named president and CEO in 2000, and assumed the role of chairman in 2003. Fritz Henderson, GM president and chief operating officer, will serve as CEO. Henderson, 50, was named to his current position in 2008. He was previously vice chairman and chief financial officer. Kent Kresa, chairman emeritus, Northrop Grumman Corporation, has been named interim non-executive chairman of the board of directors. Kresa became a GM director in 2003 GM is awaiting further announcements by the President and the Task Force on Automotive Reconstruction, and we will have additional comments at that time. GM Board of Directors statement, attributable to Kent Kresa, Chairman

"The Board has recognized for some time that the Company's restructuring will likely cause a significant change in the stockholders of the Company and create the need for new directors with additional skills and experience. The Board intends to work to nominate a slate of directors for the next annual meeting that will include a majority of new directors taking into account the addition of new directors, retirement, and decisions by individual directors not to stand for re-election, although the specific individuals who will be nominated or choose not to run or leave the board are not yet known."

REPORT: Obama OKs more short-term aid for GM and Chrysler, Henderson to replace Wagoner

President Barack Obama has been busy this weekend when it comes to the auto industry. Following reports that General Motors CEO Rick Wagoner is stepping down at the President's request comes news that the Commander in Chief has decided to grant both GM and Chrysler additional short-term aid.

The Detroit News is reporting that the President told four members of Congress from Michigan in a conference call Sunday night that the government would give GM additional aid for 60 days to complete its restructuring and Chrysler gets 30 days to finalize its partnership with Fiat. The exact amounts were not specified, but will likely be revealed early this week as the deadline for each automaker to update the government on its restructuring plan arrives on Tuesday, March 31.

An unnamed source familiar with the call also confirmed that GM's current Chief Operating Officer, will replace Wagoner as the automaker's CEO.

Geely CEO hypes methanol cars to planners

Shanghai, March 4 Li Shufu, Chairman of Geely Automobile Holdings Ltd and member of the National Committee of Chinese People's Political Consultative Conference (CPPCC), is proposing a motion to the government's industry planning bodies to work out a national standard for production of methanol-powered vehicles.

"Replacing gasoline engine cars with methanol engine cars should be encouraged because methanol engine cars are much cleaner than other types of new energy products and their production costs are lower," Li said in a proposal submitted to CPPCC on Monday.



Li suggested that the National Development and Reform Commission, the Ministry of Industry and Information Technology and Standardization Administration speed up the related policy making procedures and promote the use of methanol-powered vehicles nationwide.

China's central government said in January that it would subsidize purchases of clean-energy vehicles, including electric, hybrid and fuel-cell vehicles, for public fleets in 13 Chinese cities. But no details for the scheme were released.

Nissan NV200 mini-van to be China-made in '09

Shanghai, March 3 Nissan Motor unveiled its NV200 at the 2009 Geneva Auto Show today. The new compact van will also be showcased at next month's 2009 Shanghai Auto Show and will be produced in China by Zhengzhou Nissan within the year, auto.sina.com said, citing Nissan Motor vice president Andy Palmer.

As a commercial domestic vehicle, the NV 200 is quite popular in Europe, but it's still a newborn in China. Andy Palmer said he is confident about the NV200's prospect in the Chinese market as the new model can better meet the consumer demands in safety, comfort, status and price.



Based on the same front-wheel drive platform that underpins the Nissan Cube, the NV200 promises an economical ride. Engine choices will include a 1.6L gas engine producing 108 horsepower and a 1.5L diesel powerplant generating 85 horsepower and about 150 lb-ft of torque.

For its passenger and commercial purposes, the NV200 will come with a number of convenience features, including Nissan's Intelligent Key, power windows, ESP and an available rear-view camera-a first for the segment.

The NV200 will hit the Japanese market by mid-2009, with Europe slated to get the van by this fall. According to Andy Palmer, Zhengzhou Nissan, Nissan Motor's joint venture in China, will start to produce this small van model this year.

Dongfeng, Changan may bid for Volvo in Apr

Shanghai, February 27 (Gasgoo.com) Three interested companies may place indicative bids for Ford's up-for-sale Swedish brand Volvo Cars in April, according to Swedish newspaper Dagens Industri (DI).

Reuters noted that DI quoted unnamed sources as saying that the three bidders include Chinese carmakers Dongfeng Motor Group and Chongqing Changan Automobile Co, and "a European constellation".

"Indicative bids are to be expected around the Easter weekend," the paper said. The expected purchase price for Volvo is believed to range between SEK20bn ($2.29bn) and SEK25bn ($2.86bn), it reported.



The paper also said the European Investment Bank (EIB) was expected to grant Volvo a 5 billion Swedish crowns ($568 million) loan in the near future. Volvo applied for the loan last month.

Volvo Cars is a separate company from Gothenburg, Sweden-based Volvo AB, the world's second-largest truck maker. Dongfeng Motor Corp is China's third-biggest automaker while Changan Auto Group manufactures Volvo cars in China in a partnership with Ford.

VW China to launch four new models every year

Volkswagen Group in China, a joint venture between Volkswagen AG of Germany and Shangai Auto of China, plans to add or revamp four models each year in a bid to double sales and maintain its leading position in China's automobile industry.

"We plan to add or renew at least four models per year and double the number of dealerships to achieve our sales targets and increase our market share," Winfried Vahland, executive vice president of the Volkswagen Group, and president and CEO of Volkswagen Group China, said.

He said the company would strive to combine Volkswagen's cutting-edge and environment-friendly technologies with local R&D capabilities to generate products that perfectly meet customers' needs.

It would also improve customer satisfaction and brand image through enhanced dealer networks and upgraded service, he said.

Shanghai Volkswagen and FAW-Volkswagen as two powerful joint ventures will further cultivate synergies and win-win partnerships to achieve even greater success and move Volkswagen Group China forward, he said.

Volkswagen Group China, he said, is committed to the Chinese consumers, its employees, shareholders, partners and the long-term sustainable development of the Chinese automobile industry.

"The current global economy and automobile markets now face many uncertain factors. However, we recognise that the slowdown presents challenges. We have defined a plan to face these challenges and take all opportunities," Vahland said.

"Over the next two years, we will remain flexible, preparing for several scenarios of the China's total market development. We will continue to invest in building our brand images, customer satisfaction, products and corporate social responsibility and never compromise on quality," he added.