Here are series of quotes compiled by BreakingViews.
Is this what you need to do in order to be identified as a "Leader"? Is this the character "quality" that Boards look for when they are trying fill the role of CEO?
Those of us, who work on Wall St., and understand how the "real world" works (not the dream world moderated by Sarbanes-Oxley, are not surprised by these comments.
Years ago, one wise Research Director was evaluating me for a job. At the end of a long day, he asked me a simple question: “How do you know when a company executive is lying to you?” My answer: “His lips are moving.” I got the job.
Resounding dismissal
“I’d just like to set the record straight here and now. There is absolutely no plan, strategy or intention for GM to file for bankruptcy.”
Rick Wagoner, GM CEO, in an internal memo to employees, November 2005
“I don't care which junior analyst on Wall Street or two years out of Harvard B-School says – ‘Oh, well, General Motors inevitably headed for bankruptcy’ - Well you know, our view of that is, that's a crock. It's not going to happen."
Bob Lutz, GM’s vice chairman of product development, January 2006
“Bankruptcy is a very bad idea, and just about everybody associated with GM, from customers, to employees, to retirees, to suppliers, just about anybody, to dealers, loses…I think we can do better for our employees, too, than running and hiding from problems by bankruptcy. We think we can sit down across the table and say: ‘Hey, we can't maybe give you everything we've given you in the past, but we can continue to offer very fair benefit programs, but we're going to need to work together in cutting the costs of those.’”
Wagoner, interview with PBS, April 2006
The pressure builds anew
"We have no thought of [bankruptcy] whatsoever."
Wagoner, responding to a question from the audience at an event in Dallas, July 2008
“Clearly we face unprecedented challenges related to uncertainty in the financial markets globally and weakening economic fundamentals in many key markets. But bankruptcy protection is not an option GM is considering. Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers.”
General Motors statement, October 2008
It’s just the worst option possible, honest
Bankruptcy would force GM to "liquidate the company because you wouldn't have any revenue". So GM has "concluded it should put virtually all effort into avoiding" bankruptcy.
Wagoner, before the House Financial Services Committee, November 2008
"We developed a plan that would allow us to be robust and pay back the loans, even with a very difficult set of economic assumptions.”
Fritz Henderson, General Motors president, explaining why bankruptcy isn't a viable, or indeed necessary, option for the struggling US carmaker. December 2008
Accepting the inevitable
Bankruptcy is “certainly more probable…Our preference would be to use the next 60 days to accomplish [restructuring] out of the court process," said Henderson. "If we're not successful doing it out of court, we'll do it in court."
Henderson, now GM’s CEO after Rick Wagoner forced out by Obama administration, speaking to reporters, March 2009
“There are no second chances. We won’t need one.”
Henderson, speaking to reporters after GM filed for bankruptcy, June 2009
