After being at the helm of General Motors Corp. for eight months, which saw the cash-strapped automaker file for Chapter 11 protection, Frederick Henderson has resigned as its president and chief executive. GM said on Tuesday that its chairman Ed Whitacre will take over responsibilities of the CEO, in addition to his current position. Henderson's resignation reportedly stems from the conclusion of the company's board that his performance fell short of its expectations.
According to reports, the board on Tuesday reviewed Henderson's performance in the 100 days following the company's July 10 exit from bankruptcy. Henderson was reportedly present at the meeting, where many directors of the automaker said they believed that an external hand was required to steer GM back to its golden days.
Henderson, who was the company's COO, was elected as GM president and chief executive officer and a director of the company in March, after former CEO Rick Wagoner was forced to step down by the U.S. Government. However, he failed to achieve many of the objectives that would have seen GM in a better position. Attempts to sell the Saturn, Saab and Opel units did not come through and the company's U.S. market share nosedived.
Reports had suggested earlier that Henderson and the board were not always going together smoothly. Although many of the cash-related objectives, such as the financial targets in the viability plan, were met, Henderson and the board had different views on certain other aspects of running the company. Whitacre had said last month that he preferred the timing for GM's initial public offering to be later than what was previously discussed by Henderson.
The board was not happy with the pace of Henderson's actions, reports added. Henderson, who served GM for 25 years, reportedly followed his mentor Wagoner, which many view as typical of professionals working with GM for a long time.
Commenting on Henderson's resignation, Whitacre said, "Fritz has done a remarkable job in leading the company through an unprecedented period of challenge and change. While momentum has been building over the past several months, all involved agree that changes needed to be made."
According to a report, neither the Obama administration nor the government had any immediate role in Henderson's resignation.
Henderson, 51, started his career at General Motors in 1984 as a senior analyst in the Treasurer's office in New York. He was vice chairman and chief financial officer from January 1, 2006, to March 2, 2008, after which he was promoted as president and chief operating officer at GM.
The Treasury's task force had reportedly said in August that the chances of Henderson fixing GM was 40%-60%. The task force had also urged the company to bring in professionals from outside to fix its problems.
Though Henderson put in a lot of effort to save the company, GM went into bankruptcy on June 1, citing $172.8 billion in debts, wiping out the investments of all shareholders.
After 40 days of court protection, the automaker emerged as a new company primarily owned by the governments of the U.S. and Canada, the Ontario provincial government, and by a trust fund providing medical benefits to UAW retirees.
The U.S. Department of the Treasury owns 60.8% of the new company's common stock and the UAW Retiree Medical Benefits Trust holds 17.5%. Canada and Ontario governments owns 11.7% stake in the new company, old GM owns 10%.
GM planned to sell or eliminate half of its eight domestic brands, to concentrate on its four core brands, including Chevrolet, Cadillac, GMC, and Buick. However, the company failed to attract potential bidders for some of its brands.
Roger Penske opted out of the deal to buy Saturn, and the brand is now liquidating. Last month, Swedish sports car maker Koenigsegg Group AB terminated the deal to buy GM's Swedish Saab brand.
On November 3, GM abandoned the sale of German unit Adam Opel GmbH and British sister brand Vauxhall, citing the improving business environment as well as the importance of the brands to GM's global strategy.
While Henderson and Wagoner were rapped for their actions or inactions, competitor Ford Motor Corp. (F)'s chief executive Alan Mulally has been receiving accolades for leading the company efficiently in a tough environment. When Ford appointed the former Boeing Commercial Airplanes chief as its head in 2006, it had raised many eyebrows. But Mulally has shown how an outsider can bring about positive change to a company. Ford is the only U.S. Automaker not to seek federal assistance.
GM on Tuesday reported a 2.2% drop in sales for November, as higher sales of core brands were more than offset by weak performances in non-core brand vehicles. Sales in November dropped to 151,427 units from 154,877 units in the prior year month. Total car sales fell 1.3% to 58,036 units, while total truck sales decreased 2.8% to 93,391 units from a year earlier.
Ford reported Tuesday that its November sales remained essentially flat at 123,167 units. Toyota Motor Sales U.S.A. Inc., a unit of Toyota Motor Corp. (TM), reported an 11.5% jump in its November sales to 133,700 vehicles, boosted by strong demand for its passenger cars and hybrid vehicles.
GM's U.S. sales this year has dropped 32% and the company's market share dropped to 19.8% from 22%. At peer Ford, U.S. vehicle sales in 2009 dropped 19% from last year. Ford said Monday that it estimates that its total market share in November was higher than a year ago and higher than its share in the first 10 months of 2009. Ford's November retail share was up for the 13th time in 14 months.
Last month, GM reported a loss of $1.2 billion for the first 83 days of its operation after exiting bankruptcy. GM said it intends to accelerate the repayment of its $6.7 billion in U.S. government loans with an initial $1.2 billion payment in December.
GM said Tuesday that has initiated an international search for a new president and CEO. A search is already underway to find a replacement for CFO Ray Young.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.