Heads to roll at GM, Ford and Chrysler as bail-out plan takes shape

11 December 2008

The government bail-out package for the struggling US car makers has come with strings attached. President-elect Barrack Obama has demanded major restructuring, including changes at the top, at the three major auto firms.

In an appearance on NBC's `Meet the Press' and later at a news conference, Obama asked the Detroit Big Three - General Motors Corp, Ford Motor and Chrysler LLC - to shed their ostrich-like approach to problems and be clear of long-term survival strategy for US auto industry.

At least one senator (Congressional Democrat, senator Christopher Dodd of Connecticut) was blunt enough to say Rick Wagoner, the chief executive of General Motors Corporation, "has to move on."

Dodd's call has given rise to speculation in the media about who might replace GM's Wagoner and his counterparts at Ford and Chrysler.

The Wall Street Journal said Carlos Ghosn, who heads both Nissan Motor Co and Renault, could be a good choice, considering his record of the quick turnaround at Nissan – that too, without any government bail-out package -  other suggestions included GM insiders like COO Fritz Henderson.

While it is yet not known who else are in the list or if Washington has someone in mind, the Fortune magazine suggested names like Robert Lane, chairman of Deere & Co; John G Rice, vice chairman of General Electric Co and president and CEO of GE Technology Infrastructure; and Sergio Marchionne, CEO of Fiat SpA of Italy.