Originally Posted by AP

Associated Press
GM CEO to Take Control of N. America Unit
Monday April 4, 10:51 am ET
By Dee-Ann Durbin, AP Auto Writer
General Motors CEO Rick Wagoner to Assume Control of Struggling North American Division


DETROIT (AP) -- General Motors Corp. chairman and chief executive Rick Wagoner said Monday he will take over daily responsibility of the huge automaker's struggling North American division.
GM North American chairman Bob Lutz and GMNA President Gary Cowger will relinquish those roles and focus full-time on global product development and global manufacturing and labor, respectively, the company said.

The world's biggest automaker recently slashed its earnings outlook for 2005, citing slumping North American sales of its sport utility vehicles and trucks, along with weaker-than-expected business in the car line.

"Given the challenges we face in North America, it makes sense for me to assume control of GM North America's day-to-day operations and shorten the lines of communication and decision-making," Wagoner said in a statement.

"I look forward to working closely with an energized, aggressive GMNA team ... to move faster on the path toward re-establishing profitability in GM's largest regional business unit."

Lutz also serves as GM's vice chairman and Cowger as a group vice president. Wagoner said they are two of GM's most experienced executives and will help the company enhance its global position.

GM announced last week that its U.S. sales fell 1.3 percent in March and now are down 3.8 percent for the year. While GM was hoping for a stronger month, the numbers were far better than February, when GM announced a 12.7 percent decline and cut its production schedule.

GM truck sales were up 3.8 percent in March, but car sales fell 8 percent and are down 8 percent for the year despite new entries such as the Pontiac G6, the Buick LaCrosse and the Chevrolet Cobalt.

GM shares were up 14 cents to $29.52 in early trading on the New York Stock Exchange, but have been trading near 10-year lows since the earnings warning.

Originally Posted by redzed

http://biz.yahoo.com/ap/050404/gm_management.html?.v=3

Are Lutz and Cowger on the way out?

Originally Posted by poSSum

Would this be part of a "do it once, do it right" move to try to ensure problems like "Aussie developed Zeta doesn't work for NA" and the "G6 cabrio can't use Saab 9-3 engineering as much as we thought" don't happen as often?

Originally Posted by evok

This is Rick's first act of leadership since taking over as CEO and Chairman. This is not Bob's show or even Gary's.
This is Rick's.
This is about Rick rolling up his sleaves and getting into the game.
There are many problems with GM right now, and Rick needs to be in the meetings where decisions need to be made on the spot.
He needs to get the organization as a whole into shape before it gets out of control. Rick was too isolated to the problems at the company. It is sink or swim time for Rick and my money is on Rick.