GM CEO Henderson quits; Whitacre steps in

Troubled US auto major General Motors said its President and CEO Fritz Henderson has resigned from his position and Ed Whitacre will be the head of the company while an international search for a new CEO is being conducted.

The resignation of Fritz Henderson was approved by the board of directors of the company at its meeting yesterday.

Reportedly, the board was not satisfied with the way things were moving regarding the turnaround of the automaker.

Whitacre in a statement said: "While momentum has been building over the past several months, all involved agree that changes needed to be made. To this end, I have taken over the role of Chairman and CEO while an international search for a new president and CEO begins immediately."

"Fritz has done a remarkable job in leading the company through an unprecedented period of challenge and change," Whitacre said. Henderson was appointed as the CEO of GM in May this year, as the auto giant was headed for bankruptcy.

GM's daily business operations will continue as "normal", Whitacre said, adding that "our company is on the right path and that we will continue to be a leader in offering the worldwide buying public the highest quality, highest value cars and trucks".

"We now need to accelerate our progress toward that goal, which will also mean a return to profitability and repaying the American and Canadian tax payers as soon as possible," he added.

The resignation of Henderson came at a time when the board of directors of GM said it will consider the potential bids for its Saab brand till the end of this month.

"The GM Board of Directors has received expressions of interest in Saab since the conclusion of negotiations with Koenigsegg Group AB. The Board will evaluate potential bids between now and the end of December," GM said in a statement.

At the end of this month the automaker would decide as to whether a suitable arrangement for Saab exists or if it needs to be closed down.

"At that time, we will determine whether a suitable arrangement for Saab exists.  If not, we will begin an orderly wind down of the global Saab business at that time," the statement said.

Due to non-disclosure agreements, we will not confirm or comment on any potential transactions or other matters unless, and until, we determine that disclosure is appropriate, it added.