Tuesday, June 09, 2009

GM Hires a Deal Maker

General Motors (GMGMQ ) announced that they will get a new chairman when they come out of bankruptcy. Former AT&T Corp. Chairman and CEO Edward E. Whitacre Jr. got the nod. Mr. Whitacre, 67, was chairman and CEO of AT&T and predecessor companies from 1990 to 2007, when he retired with a $158 million package. Mr. Whitacre led the company through a series of mergers and acquisitions.

This is not a car guy. It can, may and should be argued that America does not have a good car guy. So they go for a retired telephone guy who has a strong and successful track record in deal making. Is that the signal that GM will become a deal-making entity. What about becoming a great car company? The selection of leaders says a lot about the future.