Riding high on a US$1.3 billion quarterly profit, General Motors (GM) announced on Thursday that Ed Whitacre would step down as CEO next month as the biggest US automaker prepares to break free from government control and relist on the stock exchange.
Revenues and profits swelled under Whitacre, 68, who was brought out of retirement last year by US President Barack Obama’s administration to lead the troubled company after a government-financed restructuring under bankruptcy protection.
“It was my public duty to help return this company to greatness and I didn’t want to stay a day beyond that,” said Whitacre, announcing he would step down as CEO on Sept. 1 and as chairman of the board by the end of the year.
PHOTO: AFP
“We’ve positioned the company for success and things look good. There’s a foundation in place, a good foundation. I see no reason to delay,” he said.
Whitacre, the long-time head of telecoms giant AT&T who took the helm of GM on Dec. 1, expressed confidence in successor Dan Akerson, who had no previous experience in manufacturing before joining the GM board when it emerged from bankruptcy in July last year.
“I know Dan will do a terrific job of leading this company forward,” Whitacre said in a conference call.
“He has a great team around him and the complete support of the board and GM’s employees ... I think he’s absolutely the right choice,” he said.
GM was expected to register its plans for an initial public stock offering (IPO) with securities regulators yesterday after having reportedly secured a US$5 billion line of credit.
Its drive for an IPO will be boosted by news that the firm’s revenues swelled to US$33 billion in the second quarter, a US$10 billion increase over the same period last year, as vehicle sales rose 11 percent.
GM executives declined to comment on the upcoming IPO, which will allow the US government to begin winding down its massive stake in the company.
Whitacre said he was proud of GM’s progress under his stewardship, adding that the transition to Akerson’s leadership would be “seamless.”
“Dan has played a big role in the key decisions and changes at the new GM,” Whitacre said.
“Dan brings broad business experience, decisive leadership and continuity. The transition will be smooth and he will build on the positive moment we’ve established,” he said.
Akerson, 61, joined the GM board after a distinguished career in finance as a managing director at the Carlyle Group and in telecommunications, serving as chairman and chief executive of XO Communications and at Nextel Communications.
He was also chairman and CEO of General Instrument Corp.
Akerson said that he shared Whitacre’s vision for the company and has few major changes in mind, but declined to detail his plans until he officially claims the top spot.
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