GM boss Whitacre stepping down after eight months

WASHINGTON - General Motors chief executive Ed Whitacre in a shock announcement Thursday said he will step down Sep 1 after little more than eight months in the job.

Whitacre said he would hand over the running of the largest US carmaker to Daniel Akerson, a member of the board of directors since July 2009. Whitacre will remain chairman of the Detroit-based manufacturer until the end of the year.

The announcement came as General Motors Corp posted its second straight quarter of profits. The company boosted its net income to $1.3 billion in the second quarter, after posting a deficit of $12.9 billion a year earlier.

“My goal in coming to General Motors was to help restore profitability,” Whitacre said. We are clearly on that path. A strong foundation is in place and I am comfortable with the timing of my decision.”

Whitacre, 68, noted that his job had always been temporary. He was named CEO in December 2009 after the departure of Fritz Henderson and is credited with leading the company out of perhaps the most tumultuous period in its 100-year history.

Flagging sales and a damaging US recession forced GM to enter bankruptcy in June of last year. It exited a month later under majority control of the United States government, including $7 billion in emergency federal loans.

GM shares were pulled at the time. GM has since paid back the loans and preparations are now underway for the carmaker to rejoin the stock market. Details could be released as early as Friday, US media reported.

The company’s revenues shot up by 44 percent in the second quarter, reaching $33.2 billion. Its car sales have boomed in the North American and Asian markets, while those by its European subsidiaries Opel and Vauxhall continued to be weak.

GM Europe nevertheless managed to limit its losses to $160 million through savings.

“There are remarkable opportunities ahead for the new GM, and I am honoured to lead the company through this next chapter,” said Akerson, 61, who before joining GM headed telecom companies including XO Communications and Nextel Communications.