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.
NATIONAL SECURITY: The Chinese influencer shared multiple videos on social media in which she claimed Taiwan is a part of China and supported its annexation Freedom of speech does not allow comments by Chinese residents in Taiwan that compromise national security or social stability, the nation’s top officials said yesterday, after the National Immigration Agency (NIA) revoked the residency permit of a Chinese influencer who published videos advocating China annexing Taiwan by force. Taiwan welcomes all foreigners to settle here and make families so long as they “love the land and people of Taiwan,” Premier Cho Jung-tai (卓榮泰) told lawmakers during a plenary session at the Legislative Yuan in Taipei. The public power of the government must be asserted when necessary and the Ministry of
Proposed amendments would forbid the use of all personal electronic devices during school hours in high schools and below, starting from the next school year in August, the Ministry of Education said on Monday. The Regulations on the Use of Mobile Devices at Educational Facilities up to High Schools (高級中等以下學校校園行動載具使用原則) state that mobile devices — defined as mobile phones, laptops, tablets, smartwatches or other wearables — should be turned off at school. The changes would stipulate that use of such devices during class is forbidden, and the devices should be handed to a teacher or the school for safekeeping. The amendments also say
EMBRACING TAIWAN: US lawmakers have introduced an act aiming to replace the use of ‘Chinese Taipei’ with ‘Taiwan’ across all Washington’s federal agencies A group of US House of Representatives lawmakers has introduced legislation to replace the term “Chinese Taipei” with “Taiwan” across all federal agencies. US Representative Byron Donalds announced the introduction of the “America supports Taiwan act,” which would mandate federal agencies adopt “Taiwan” in place of “Chinese Taipei,” a news release on his page on the US House of Representatives’ Web site said. US representatives Mike Collins, Barry Moore and Tom Tiffany are cosponsors of the legislation, US political newspaper The Hill reported yesterday. “The legislation is a push to normalize the position of Taiwan as an autonomous country, although the official US
CONSISTENT COMMITMENT: The American Institute in Taiwan director said that the US would expand investment and trade relationships to make both nations more prosperous The US would not abandon its commitment to Taiwan, and would make Taiwan safer, stronger and more prosperous, American Institute in Taiwan Director Raymond Greene said. “The US’ commitment to Taiwan has been consistent over many administrations and over many years, and we will not abandon our commitment to Taiwan, including our opposition to any attempt to use force or coercion to change Taiwan’s status,” he said in an exclusive interview with the Liberty Times (the sister newspaper of the Taipei Times) on Friday last week, which was published in the Chinese-language newspaper yesterday. The US would double down on its efforts
RSS