Detroit (MI) – AT&T may be chastised by consumers because of its laid back approach to today’s demands for advanced telecommunications technologies, but there is no doubt that Ed Whitacre Jr. has squeezed every possible dollar of the company’s business opportunities. GM hopes that Whitacre will be able to do the same for the troubled car maker.
The former chairman and CEO of AT&T will replace Kent Kresa as CEO, while Kresa will remain interim chairman. Whitacre was chairman and CEO of AT&T from 1999 to 2007. He will have to lead GM through its current state of bankruptcy protection. GM is majority-owned by the U.S. government. Looking at Whitacre’s history, we expect the company to shed every asset that does not contribute to the profitability of the company.
The Saturn division was already announced to be sold to Penske Automotive group (which said that the Astra and Sky models would be discontinued), Pontiac is planned to cease production in 2010 and China-based Sichuan Tengzhong Heavy Industrial Machinery Company Limited said it want to take over Hummer.