GM gets new cheif of finance....

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From the
Wall Street Journal online....

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GM Names Henderson
As New Finance Chief

By LEE HAWKINS JR. and JOSEPH B. WHITE
Staff Reporters of THE WALL STREET JOURNAL
December 6, 2005 6:24 p.m.

General Motors Corp., facing its worst financial crisis in 15 years, named Frederick "Fritz" Henderson, head of its European operations, as vice chairman and chief financial officer as part of a wider management shuffle.

Mr. Henderson, 48 years old, succeeds John Devine, a former Ford Motor Co. executive who came out of retirement in 2001 to become vice chairman and chief financial officer. Mr. Devine's five year contract ends this month. GM said Mr. Devine will remain a vice chairman for up to a year, working with Mr. Henderson and advising Chairman and Chief Executive Officer Rick Wagoner on executing GM's plan to turn around its money-losing North American operations. (Read GM's statement.)

Mr. Henderson, who like Mr. Wagoner got his start in GM's treasurer's office, has long been considered one of the leading contenders to succeed Mr. Wagoner, who is 52 and has been GM's chief executive since 2000. Mr. Wagoner, despite pressure from disgruntled shareholders, has shown no sign of leaving his job any time soon, and he appears to have the support of his board of directors, despite deepening losses and a stock that's down 45% from its 52-week high.

Over the past eight years, Mr. Henderson has run every major part of GM's global automotive empire except North America. He served as head of Brazilian operations in the late 1990s, ran Latin American, African and Middle Eastern operations from 2000 to 2002, and led Asia Pacific operations from 2002 to 2004 as GM was ramping up an aggressive expansion in China. Since 2004, Mr. Henderson has been leading a turnaround effort at GM's unprofitable European operations. Last year, GM announced plans to cut another 12,000 jobs in Europe.

Mr. Henderson will be succeeded as group vice president in charge of GM Europe by Carl-Peter Forster, a former BMW AG executive who has been Mr. Henderson's No. 2 at GM Europe since last year.

Mr. Henderson's promotion to vice chairman and chief financial officer comes at a time when GM is facing a daunting array of problems in its core North American business. GM has lost $3.8 billion so far this year, its debt is junk rated, and the company faces a Securities and Exchange Commission investigation of its accounting. Last month, GM said it would restate its 2001 results, and possibly results for subsequent years, because it improperly booked credits from suppliers. No one has been charged with any wrongdoing in connection with the SEC investigation.

In separate moves, GM shook up the chain of command in its North American labor relations in advance of difficult U.S. labor negotiations in 2007. John Buttermore, 54, who has been vice president of labor relations, is getting a new assignment as vice president of manufacturing operations in GM's powertrain group. The new vice president of labor relations as of Jan. 1 will be Diana Tremblay, a 28-year GM veteran who since 2004 has been executive director of labor relations and was a key negotiator in GM's recent agreement with the United Auto Workers to cut UAW retirees' health-care benefits. She will report to GM's group vice president for global manufacturing and labor relations, Gary Cowger.

Guy Briggs, 67, the group vice president in charge of North American manufacturing and labor relations, will retire April 1. His duties will be split. Tim Lee, currently vice president of manufacturing at GM Europe, will take over as vice president for manufacturing in North America as of Jan. 1.

Write to Lee Hawkins Jr. at [email protected] and Joseph B. White at [email protected]