Rick Wagoner | |
|---|---|
 Rick Wagoner in 2004 | |
| Born | George Richard Wagoner Jr. (1953-02-09)February 9, 1953 (age 72) |
| Nationality | American |
| Alma mater | Duke University (BA) Harvard University (MBA) |
| Occupation(s) | Businessman Formerly chairman & CEO of General Motors (2000–2009) |
| Predecessor | John F. Smith Jr. |
George Richard "Rick" Wagoner Jr. (born February 9, 1953) is an American businessman and former chair and chief executive officer ofGeneral Motors. Wagoner resigned as chairman and CEO atGeneral Motors on March 29, 2009, at the request of theWhite House.[1][2][3] The latter part of Wagoner's tenure as CEO of General Motors found him under heavy criticism as themarket valuation of GM went down by more than 90% and the company lost more than US$82 billion.[4] He is a board member ofChargePoint, an electric vehicle infrastructure company.[5]
Wagoner was born inWilmington, Delaware and grew up inRichmond, Virginia. He graduated fromJohn Randolph Tucker High School there, where he was named "Best All Around" student in his graduating class. He received aBA in Economics fromDuke University in 1975.[6] He then attendedHarvard Business School, from which he received anMBA in 1977. He is married and has three adult sons.[7]
While at Duke, he became a member of theDelta Tau Delta fraternity. Wagoner is a member of the boards of trustees ofDuke University,Detroit Country Day School, the Board of Dean's Advisors of theHarvard Business School, and the board of directors ofCatalyst.[8] He is a member of The Business Council, TheBusiness Roundtable, Detroit Renaissance Executive Committee, and the Secretary of Energy Advisory Board.
After Harvard, he joined GM as an analyst in the treasurer's office. In 1981, he became treasurer of GM'sBrazil subsidiary and later served as managing director.[9]
In 1992, he was named GM's chief financial officer, in 1994 he became executive vice president and/or president of North American Operations, and in 1998 he was named president and chief operating officer.
After GM lost $30 billion during a single three-year stretch in the early 1990s, Wagoner and chairmanJohn F. "Jack" Smith Jr. forced GM "back to basics" to battle "30 years of management mistakes" that left him with little room to maneuver.[10]
Wagoner became president and Chief Executive Officer in June 2000 and was elected chairman on May 1, 2003. Under his leadership, GM suffered more than $85 billion in losses.
In an interview,[11][12] Wagoner stated that the worst decision of his tenure at GM was "axing theEV1electric car program and not putting the right resources intohybrids. "It didn't affect profitability," Wagoner claimed, "but it did affect image".[13][14]
In April 2005, Wagoner took back personal control of GM's North American car division from GM North American chairmanBob Lutz and GM North American President Gary Cowger in light of its poor performance.[15] In early June 2005, Wagoner announced that GM in the United States would close several plants and shed 25,000 employees (17% of GM's U.S. workforce) by 2008. The cuts will result in GM production reducing output by one million cars and trucks (from 6 million to 5 million).
In theAutomotive industry crisis of 2008–10, Wagoner came under renewed pressure as GM sought financial support from the U.S. government in an attempt to avoidbankruptcy. During the latter half of 2008, Wagoner and GM maintained that bankruptcy was "not an option that GM is considering," despite rapidly running out of capital.[16] This stance was called "presumptuous" by some observers.[17] Within 9 months, GM was to declare bankruptcy.
During hearings for government loans to the Big Three Automakers, Wagoner,Alan Mulally andRobert Nardelli were criticized for flying to Washington, D.C. in corporate jets. For a subsequent meeting, the three CEOs drove from Detroit to Washington by hybrid cars.[18]
The BBC reported that Wagoner was popular among GM employees and reporters. However, it cites that he lacked the "ruthless streak needed to make the tough decisions required to bring GM back from the brink of bankruptcy."[19] While analysts have praised Wagoner for operational improvements, cost-cutting moves and an increased focus on vehicle quality, with the appointment ofBob Lutz to oversee product execution, others criticized him for his incremental approach to change, largely as he resisted making the drastic cuts demanded by the US government. Throughout the first months of 2009, Wagoner argued that a bankruptcy would be more costly than a government bailout. However, there remained lingering doubts that he was implementing the restructuring moves necessary to remain viable in the future without further government loans.[1][2][3][20][21]
On March 29, 2009, Wagoner agreed to immediately resign his position as GM chairman and CEO, as part of the Obama administration deal to provide GM with further short-term financing. The following day, the US government rejected GM's initial restructuring plan and gave the company 60 days to come with a new proposal or be forced into bankruptcy.[1][2][3][20][21] He was replaced as CEO byFritz Henderson, who had been serving as GM's President and chief operating officer.
After 32 years at GM, Wagoner retired with an exit package of over $10 million: $1.65 million in benefits per year for his first five years of retirement, $74,030 per year pension for the rest of his life, and a $2.6 million life insurance policy that can be cashed out at any time.[22][23]
In 2017, Wagoner was appointed a director at ChargePoint Inc., aSilicon Valley company that makes electric-vehicle charging stations.[24]
In 2018, Wagoner made an investment intoYourMechanic, a Silicon Valley startup which connects owners with a group of certified mechanics, currently offering more than 800 repair services.[25][26]
| Business positions | ||
|---|---|---|
| Preceded by | Chairman ofGeneral Motors 2003–2009 | Succeeded by |
| Preceded by | CEO ofGeneral Motors 2000–2009 | Succeeded by |
| Preceded by | President ofGeneral Motors 1998–2008 | Succeeded by |
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| National | |
