The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.
On Monday, President Barack Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler. The plan is based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.
The White House confirmed Wagoner was leaving at the government's behest after The Associated Press reported his immediate departure, without giving a reason.
General Motors issued a vague statement Sunday night that did not officially confirm Wagoner's departure. "We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement," the company said.
The administration needs to explain under what authority the Executive branch can take this action. When President Truman tried to take over the steel industry the court in YOUNGSTOWN SHEET & TUBE CO. V. SAWYER found that the President had overstepped his bounds.
Even if it be true that other Presidents have taken possession of private business enterprises without congressional authority in order to settle labor disputes, Congress has not thereby lost its exclusive constitutional authority to make the laws necessary and proper to carry out all powers vested by the Constitution "in the Government of the United States, or any Department or Officer thereof."
I am afraid that I don't have the words right now to express my outrage at this development. Just days before the One jets to Europe to meet the Queen and dazzle the Continent he takes over a major manufacturing entity. If this doesn't send the peasants into the street with pitchforks then I have to believe we have reached the point of no return on our road to dystopia. Heaven help us.