NEW YORK (TheStreet) -- General Motors has announced the resignation of CEO Ed Whitacre as the automaker posts a quarterly profit of $1.3 billion ahead of its IPO.
Whitacre will be replaced by Dan Akerson, who heads the
global buyout division. Akerson's resume includes key positions at large companies including
During GM's earnings call, Whitacre said that Akerson has been deeply involved in GM and is on the GM board. "I think the transition will be very smooth."
Whitacre, who will stay on the GM board until the end of the year, joined the company in July 2009, when it surfaced from bankruptcy. He had replaced ousted CEO Fritz Henderson in December.
During his time at GM, Whitacre developed a reputation for being a tough manager as he shed unprofitable brands and dealerships and overhauled layers of management. Recently he angered the public when he went "overboard" -- as many people felt -- in publicizing the company's move to pay back its loans ahead of time.
News of Whitacre's resignation comes as the "new" GM reports generally consensus-topping second-quarter earnings with net income of $1.3 billion. The performance follows GM's $865 million profit in the first quarter.
GM said that earnings per share was $2.55 vs. $1.66 previously. Revenue was $33.2 billion vs. $31.5 billion.
GM is expected to file for an IPO on Friday -- which is widely expected to be the second-largest IPO in U.S. history.
Press reports say that GM is seeking to raise up to $16 billion through the offering.
In the meantime, Whitacre is telling reporters that he always had the intention to step down once his job was done. During GM's earnings conference call, Whitacre said, "It was my plan all along -- to help return this company to greatness and I didn't want to stay a day beyond that."
In light of all this, do you think GM's decision to replace CEO Ed Whitacre with the Carlyle Group's Dan Akerson is the right move for the company? Take our poll below to see what
has to say.
-- Reported by Andrea Tse in New York
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