Monday, March 30, 2009
The White House wants to show movement in the auto industry so it asks for and gets the resignation of the CEO of General Motors. That is as much a symbol of change to come in the industry as anything. The unions, middle management, everyone in GM knows now that there will be radical restructuring as a price for the Federal government's help. It's a bold move, especially since there doesn't appear to be a successor waiting to take over. That is a risk in itself since GM needs to move quickly to stop the bleeding and any new person will have to learn the levers of power before they are pulled. Still, as a symbol, it is dramatic. It is not clear yet whether it is wise.