After Opel reversal, GM CEO in spotlight

DETROIT (Reuters) - At the new GM, the buck now stops with the board.
The surprise decision by General Motors Co to drop a plan supported by Chief Executive Fritz Henderson (Photo) to sell the company's Opel unit has raised new questions about the standing of the veteran GM insider after just six months on the job.
It isn't clear who is running GM," said Peter Morici, a professor at the Robert H. Smith School of Business at the University of Maryland. "They've got a problem here."
Henderson, who joined GM in 1984 and worked his way up as a financial manager, has only been in charge of GM since this spring, when the Obama administration ousted Rick Wagoner and ordered the company to appoint outsiders to its hitherto insider-dominated board.
The reversal on selling Opel to a group led by Canada's Magna International Inc suggests to some the new directors -- including Ed Whitacre, the former AT&T Inc CEO who now serves as GM's chairman -- are not deferring to anyone.
Noteven Henderson, who expressed confidence recently the Opel sale would be wrapped up soon.
John Smith, a GM group vice president and chief negotiator in the Opel restructuring, told reporters on Wednesday that the decision not to sell Opel was debated vigorously within GM.
HENDERSON HAD FAVORED
Henderson, who vowed to shake up the slow-moving culture of the 101-year-old automaker, had argued the Magna deal was the best remaining choice for cash-strapped GM after seven months of painstaking talks with bidders.
He also said in an interview on CNBC in late October that he thought the board supported the move.
So the company's announcement on Tuesday that the board had decided to abandon the sale left industry watchers wondering whether Henderson was out of the loop -- or losing clout.
And not everyone thinks GM's reversal on Opel was a verdict on Henderson.
Henderson was already looking like the odd man out in Detroit, where the other two car companies, Ford and Chrysler, are now run by executives -- Alan Mullaly at Ford and Sergio Marchionne at Chrysler -- who have spent most of their careers outside the car industry.
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What we had to say re this:

Now, hold your horses... This company, not long ago! filed for bankruptcy... Then Obama's Auto Task Force, headed by Steven Rattner took charge and changed the management prior to freeing the bail-out cash... OK!... What did we hear from Rattner on Oct. 20 speaking to Fortune Magazine???...QUOTE- GM & Chrysler were on brink of death and we found 'stunningly poor management' >>>>>>....Fritz Henderson, later told him: "You can fire me anytime you want, but at least give me a better chance to succeed."-In earlier meetings, Rattner found Henderson "conveyed more energy and openness to change."--UNQUOTE. Why did you guys select the then the CFO of a 'stunning poor management' team as the new CEO? Rick Wagoner wasn't just by himself when burning $44 Billion cash in 18 months time! Henderson must have been close by up at one of the 'Towers'(of RenCenter). The guy(Fritz H.) did what he was told to do; for the negotiations with Magna Int. AND the sales are up; give the guy a chance and leave him alone! / MT