REPORT: Obama OKs more short-term aid for GM and Chrysler, Henderson to replace Wagoner

President Barack Obama has been busy this weekend when it comes to the auto industry. Following reports that General Motors CEO Rick Wagoner is stepping down at the President's request comes news that the Commander in Chief has decided to grant both GM and Chrysler additional short-term aid.

The Detroit News is reporting that the President told four members of Congress from Michigan in a conference call Sunday night that the government would give GM additional aid for 60 days to complete its restructuring and Chrysler gets 30 days to finalize its partnership with Fiat. The exact amounts were not specified, but will likely be revealed early this week as the deadline for each automaker to update the government on its restructuring plan arrives on Tuesday, March 31.

An unnamed source familiar with the call also confirmed that GM's current Chief Operating Officer, will replace Wagoner as the automaker's CEO.

UPDATE: Early reports indicate that Chrysler will receive $6 billion in federal aid and over the course of the 30 days, Chrysler will likely give up a 35% stake to Fiat.

[Source: The Detroit News, Photo by Ron Sachs-Pool/Getty]

BREAKING: GM CEO Wagoner out at Obama's request

Tom Krisher of the Associated Press reports that General Motors CEO Rick Wagoner will step down from his post immediately, based on information given to him from an unnamed source. The news comes on the eve of President Obama's expected announcement of a deadline for General Motors and Chrysler to finalize their restructuring terms or enter government-backed, pre-packaged Chapter 11 bankruptcy. There's no official confirmation from GM at this time. The only announcement the automaker made today was a brief, two-sentence statement in response to the anticipated Obama announcement, saying that they continue to work with the President's automotive Task Force.

The Detroit Free Press reports that the move was specifically requested by the Obama administration as part of the rescue plan that will be announced tomorrow. Wagoner reportedly agreed, and COO Fritz Henderson would appear to be in line to be the new top guy at the RenCen. No official word on that so far, either.

Get ready a big week of auto news, kids. The NY Auto Show just got a whole lot more interesting, too. Stay tuned.

UPDATE: Official message from Rick Wagoner and GM's announcement of Board restructuring after the jump.

[Source: Associated Press, Freep]

GM Message from Rick Wagoner

On Friday I was in Washington for a meeting with Administration officials. In the course of that meeting, they requested that I "step aside" as CEO of GM, and so I have.

Fritz Henderson is an excellent choice to be the next CEO of GM. Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts. His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM'ers worldwide to succeed. I wish him well, and I stand ready to support him, and interim Non-Executive Chairman Kent Kresa, in every way possible.

I also want to extend my sincerest thanks to everyone who supported GM and me during my time as CEO. I deeply appreciate the excellent counsel and commitment of the GM Board and the strong support of our many partners including our terrific dealers, suppliers, and community leaders. I am grateful as well to the union leaders with whom I have had the chance to work closely to implement numerous tough but necessary restructuring agreements.

Most important of all I want to express my deepest appreciation to the extraordinary team of GM employees around the world. You have been a tremendous source of inspiration and pride to me, and I will be forever grateful for the courage and commitment you have shown as we have confronted the unprecedented challenges of the past few years. GM is a great company with a storied history. Ignore the doubters because I know it is also a company with a great future.


GM Statement on Officer and Board Announcements

GM is announcing the following changes in the corporate officers and the board of directors:

• Rick Wagoner is stepping down as chairman and CEO, effective immediately. Wagoner, 56, was named president and CEO in 2000, and assumed the role of chairman in 2003.
• Fritz Henderson, GM president and chief operating officer, will serve as CEO. Henderson, 50, was named to his current position in 2008. He was previously vice chairman and chief financial officer.
• Kent Kresa, chairman emeritus, Northrop Grumman Corporation, has been named interim non-executive chairman of the board of directors. Kresa became a GM director in 2003
• GM is awaiting further announcements by the President and the Task Force on Automotive Reconstruction, and we will have additional comments at that time.

GM Board of Directors statement, attributable to Kent Kresa, Chairman

"The Board has recognized for some time that the Company's restructuring will likely cause a significant change in the stockholders of the Company and create the need for new directors with additional skills and experience. The Board intends to work to nominate a slate of directors for the next annual meeting that will include a majority of new directors taking into account the addition of new directors, retirement, and decisions by individual directors not to stand for re-election, although the specific individuals who will be nominated or choose not to run or leave the board are not yet known."

VIDEO: Drifting 101 with world champion Rhys Millen

Hyundai has set up a new YouTube channel where it's going to be posting videos featuring its cars. The first couple of clips come from the Genesis coupe press intro that just took place in Nevada. You can read Mike Harley's report on that later this week.

In the meantime, check out drifting champion Rhys Millen explaining how drifting competitions are judged and what sort of changes his team had to make to Genesis to turn it into a drift car. Warning: if screeching tires, shredded rubber and lots of smoke make you squeamish, you might want to avoid this.

Tuesday deadline for Chrysler Canada to make CAW deal

After declaring that the deal GM struck with the Canadian Auto Workers union wasn't nearly good enough, Chrysler has threatened to pull out of Canada if cannot come to an agreement with the CAW by Tuesday, March 31. Making matters even more pressing is the fact that the Canadian government has set the same deadline for Chrysler's Canadian operations to receive government money. If the CAW and Chrysler don't agree on something, the Canadian treasury closes up the vault.

As of Friday, the two sides were still $12-per-hour away from a deal. Chrysler says it needs a $19-per-hour reduction in labor costs, the CAW says its workers are more efficient than their American counterparts at a $7-per-hour drop. The CAW also claims that Chrysler's negotiators would appear to agree to certain things, and then return to the table with a different set of demands. The theory is that chaperon Cerberus is overruling the negotiators' positions.

Chrysler's response is "Although we made progress toward 'closing the gap', significant issues related to the existing 'pattern' remain on the table. These are not normal business circumstances and all Chrysler constituents have been asked to 'break pattern.'" As for the Canadian government, it has said it "isn't married" to the Tuesday deadline, but it's obvious they don't plan to stand around with a bag of money indefinitely. Hat tip to Dan

[Source: CBC News]

Spy Shots: Mini working on 50th Anniversary models?

It's still too early in the life cycle of the latest MINI Cooper for BMW to make any major changes to the car's basic design, so our interest is naturally piqued by these spy photos of some interesting MINIs caught on German streets, since they appear to sport a mildly-revised front bumper that incorporates restyled air intakes and fog lights.

Since BMW first revived the MINI brand in 2001, the little Cooper has seen just one complete refresh, which took place in 2006 and was followed a year later by the stretched Clubman model. The latest convertible version was just released a few months ago, and all three models were met with mostly positive reactions. So, what's the deal?

According to Global Motors, these changes may make it into production for a new edition from MINI that celebrates the brand's 50th anniversary. It's certainly possible; after all, there's still plenty of life left in the 2009 auto show circuit. Stay tuned.

[Source: Global Motors]

FOLLOW UP: CARB says "Just kidding about banning black paint..."

To be completely fair, the California Air Resources Board never intended to ban black paint -- or any color of paint, for that matter. When devising ways to implement the Cool Cars Initiative, CARB couldn't find any dark paints that passed the 20% solar reflectivity test, which others took to mean that CARB would be banning them.

Not so, says a CARB spokesman: "We are by no means interested in banning or restricting car colors." For now, CARB is sticking with the reflective glass portion of the initiative, which would add a reflective clear coat to windows and $31-$50 to the price of a new car, and is taking public comments on the proposed new rules. Thanks for the tip, Jason

[Source: LA Times]

Everybody loves... the Fiesta Movement?

While visiting our favorite weekly car gathering in SoCal today, we were stopped in our tracks when we spotted "Everybody Loves Raymond" star Ray Romano, happily answering questions about the shiny new Ford Fiesta parked beside him. We thought it odd for Ford to enlist such a well-known stand-up comic to pitch the product at such a meager gathering, but figured even A-list talent might be hurting for a little extra scratch in this economic climate. We approached to get a better look and realized it was actually Fiesta Brand Manager Sam De La Garza a dead ringer for the actor who portrayed everybody's favorite Italian-American non-mobster on television.

Sam brought the Fiesta to Cars & Coffee to show it off and elicit some reactions. He also wanted to remind folks that the Fiesta Movement is still underway, although he declined comment on sister site AB Green's entry. Without giving too much away, he did mention that the response to the contest has been overwhelming. He told us that the entries have been beyond imagination, mentioning, for example, that Juston Laipply, creator of the über-viral "Evolution of Dance", was among the entrants. While the Fiesta's success in America seems to be a foregone conclusion in some camps, Sam also brought along a Ford Ka to see whether the Fiesta might have big enough coattails to carry its kid brother as well. We can hardly wait to get our hands on one.