Ex-GM head walks with $8.6 million

The BBC reports Rick Wagoner is leaving the distraught car manufacturer with $8.6 million over the next five years.
Mr Wagoner is standing down after he was ousted from the jobs of chairman and chief executive in March as part of the government rescue of GM. If he had retired last year, he would have been entitled to a retirement package worth $23m. Last week, GM emerged from bankruptcy protection as a smaller company. Mr Wagoner had led GM since 2000. In recent years he had presided over increasing losses at the firm, after it was hit by falling sales in its key home market. In addition to being hurt by the industry-wide fall in sales, GM was hampered by an over-reliance upon large, high fuel consumption sports utility vehicles, which fell out of fashion as fuel prices rose. Mr Wagoner's pension deal includes five initial annual lump sum payments of $1.64m, plus $74,030 each year, also starting from August.
Jul 15, 2009 9:30 AM

The new GM, the basics

The New York Times has a pretty good outline of the new company and the specific of its new, government-backed corporate organization.
Jul 13, 2009 7:59 AM

What the new GM must do

According to an article over at National Public Radio, the new GM, fresh out of Chapter 11, has a specific goal to hit:
Lutz says his optimism comes from GM's retail outlook and the industry's lower break-even point of about 10 million vehicle sales per year. Lutz says GM's U.S. market share is between 21 and 23 percent, which means the automaker will need to sell about 2.3 million cars a year in order to break even.
Jul 13, 2009 7:56 AM

Second wind for Spring Hill?

An unofficial GM Web site is reporting today that the Spring Hill plant, which recently lost out on the opportunity to manufacture a new small-sized sedan, could have a future in the SUV game. From GM Inside News:
However, today GMI learned that Spring Hill still has a future beyond being a standby plant. GM is planning to build the next Chevrolet Traverse at Spring Hill, as well as production for the next-generation Cadillac Escalade, which will be built on a variant of the Lambda platform. Also slated for Spring Hill is production of a Chevrolet SUT (Avalanche-like vehicle) based on the Lambda platform. Possibly the biggest news out of the Spring Hill is that GM is now considering it as the assembly site for the next-generation Chevrolet Colorado and GMC Canyon small trucks. Currently the small trucks are assembled at GM's Shreveport, Louisiana plant, which has been rumored to be closing or sold. The new trucks are known internally as the GMT-700's.
Jul 7, 2009 4:06 PM
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What we were up against

In Tennessee's losing bid for a new General Motors operation in Spring Hill, a Wisconsin news outlet is reporting that that state was offering up to $200 million in incentives. And even it eventually lost out to a facility in Orion Township north of Detroit.
Janesville's release says the $200 million offer included $38 million worth of incentives from Beloit, Janesville and Rock County. Boutwell says Rock County promised $20 million in incentives. Janesville says it offered $15 million plus savings of up to $1 million a year by offering to operate the plant's wastewater facility. Beloit offered $2 million. GM last month selected a facility in Orion Township north of Detroit to assemble small and compact cars over Janesville and another finalist in Spring Hill, Tenn., near Nashville.
Jul 7, 2009 2:08 PM

State roundup: Private equity firm to buy Brentwood-based auto supplier

Also: Murfreesboro is still growing quickly, Memphis' mayor steps down, a $200M Oak Ridge uranium contract, and more...
Jul 2, 2009 3:10 AM

Nashvillians land some more VW work

The La Vergne operation of Schneider Electric will handle the electrical work on the heating and cooling building at Volkswagen's Chattanooga plant. The firm bid $3.6 million for the job.
Jul 1, 2009 12:45 AM

Rash of layoffs claims more than 400

Latest round of cuts at Gibson Guitar accompanied by layoffs at auto parts firms, distributor and imaging venture
Jun 29, 2009 12:12 PM

State roundup: UTK's impact nears $1B

Also: West Tennessee Healthcare CEO resigns, JT brings his liquor to town, Goodyear cuts back, and more... [From our print edition featured in Monday's City Paper]
Jun 28, 2009 9:41 AM

So much for the overhaul

One thing Spring Hill thought it had going for it was that GM had poured hundreds of millions into the plant in recent years to update its lines.
"It just kinda doesn't seem to make sense... Why not take advantage of it?"
Jun 26, 2009 1:16 AM