Kirk K and Jerry Y couldn't stand the GM top management so they left. Not good for GM. Obviously new ideas aren't welcome from an entrenched management.
- posted
17 years ago
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=gm
> Kerkorian ditches his plans to raise GM stake
>
> POORNIMA GUPTA
>
> Reuters News Agency
>
> DETROIT -- Billionaire investor Kirk Kerkorian shelved plans to raise his
> stake in General Motors Corp. yesterday, and his aide quit the auto maker's
> board two days after GM nixed a three-way alliance with Renault-Nissan. .
> Former Chrysler executive Jerry York, who became a GM director in February,
> tendered his resignation from the board yesterday.
>
> His resignation letter acknowledged GM's progress in cost cutting and in
> taking other steps that he said had "greatly" reduced "the risk of near-term
> bankruptcy."
>
> But he criticized "an environment in the boardroom" that made it hard to
> challenge management, and he raised doubts about the auto maker's longer-term
> outlook.
>
> "I have grave reservations concerning the ability of the company's current
> business model to successfully compete in the marketplace with those of the
> Asian producers," Mr. York said in his resignation letter to GM lead director
> George Fisher. A copy of the letter was obtained by Reuters.