White House Forces GM CEO Rick Wagoner to Step Down

The original concept was a bit different than what we're seeing now. The thought process was that it would be best to leave the most experienced leadership teams in place at the major auto manufacturers, in the hopes that experience would help lead to a faster recovery. Tens of billions of taxpayer dollars later and with no recovery on the horizon for the industry, the Obama administration is taking matters into its own hands. General Motors (GM) CEO Rick Wagoner, in many ways the face associated with the collapse of the U.S. auto industry, was asked to step down from his position by the President and his advisers.

Some, such as Michigan Governor Jennifer M. Granholm, have acknowledged that Wagoner may be somewhat of a sacrificial lamb in this particular instance. But Granholm also admitted to Matt Lauer on NBC's Today Show that she believed that this step by the Obama administration was justified and that it may help to establish some public faith that things are going to change in the U.S. auto industry.

Ultimately, the issue is going to come down to jobs and, perhaps as importantly, the direction of the U.S. auto industry. It seems that the Obama administration wants to see a much more drastic shift toward vehicles that are going to consume less gasoline and eventually lessen the U.S. dependence on foreign oil.

Although the Obama administration has expressed its displeasure with Chrysler Corporations plans for re-structuring, it has not commented on whether there would be management changes called for at that company.