GM CEO, Rick Wagoner, Resigns Over Bail Out Dispute

GM Chairman Rick Wagoner's resignation prompted by Obama, analysts say

General Motors Corp. Chairman Rick Wagoner's surprise resignation was prompted by an Obama administration looking for political cover in its unpopular bailout of Detroit's automakers, analysts say.

Wagoner, 56, has apparently resigned effective immediately, although GM would not confirm his resignation Sunday night.

GM President Fritz Henderson was expected to succeed Wagoner as interim chief executive officer.

"I do think they need some political cover because of the political unpopularity of the loans," David Cole, chairman of the Ann Arbor-based Center for Automotive Research said about Wagoner's apparent forced resignation by President Barack Obama's automotive task force.

"The government has decided it cannot have a failure of an automaker," Cole said. "Offering the head of the CEO is something they can do to show that they're taking action."

Wagoner, who has worked at GM for his entire 32-year career, was named chief executive office in June of 2000. He added chairman to that title in May 2003.

His resignation comes as the Obama administration is set to announce Monday further actions to restructure GM and Chrysler LLC. Both automakers are being kept alive by a total of $17.4 billion in federal loans.

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