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Ray Young: Another GM Casualty?

CFO could be next to go as maker pairs exec ranks.

by on Sep.09, 2009

Will GM's 47-year-old CFO Ray Young be the next to go in a top management shake-up?

Will GM's 47-year-old CFO Ray Young be the next to go in a top management shake-up?

The downsizing of General Motors’ executive ranks continues, with numerous sources suggesting that the automaker’s Chief Financial Officer Ray Young will be among the next to go, as part of a shake-up in the corporate finance department.

Rumors have been circulating ever since the carmaker plunged into bankruptcy, earlier this year.  Adding fuel to that fire, GM CEO Fritz Henderson’s announcement on July 10th, the day the company emerged from Chapter 11, that a third of all senior executives would be let go by the end of October.

Shake Up Your News Sources!

Shake Up Your News Sources!

So far, a wide range of once-prominent GM bosses have been packing up their corner offices, including Troy Clarke, formerly president of GM North America, while others, such as Gary Cowger, head of manufacturing, plans to retire by year’s end.  So, few insiders would be surprised to see Young join them on the way out of GM’s  Renaissance Center headquarters.


GM Bankruptcy, Once Unthinkable, Now Seems Absolutely Unavoidable

Over the past four years, GM has tried all kinds of strategies to keep the wolf from the door. It has now been blown away.

by on May.07, 2009

Ray Young and Company Employees Close New York Stock Exchange

"Once you start losing revenues, you get into a vicious cycle that you can't get out of very easily."

General Motor lost money again in the first quarter of 2009 , and is just as certain to lose money again in the second quarter, given the company’s deep cuts in production now in the schedule.

Bankruptcy, once unthinkable, seems unavoidable in the wake of the $6 billion first-quarter loss — and a $10 billion cash burn — which only exacerbated the company’s already precarious financial situation. Worse, the company revenues plunged by nearly 50% in the first 90 days of this year, suggesting that the Obama Administration’s Auto Task Force really did have cause for recommending the dismissal of former GM chairman Rick Wagoner.

“Once you start losing revenues, you get into a vicious cycle that you can’t get out of very easily,” observed Ray Young, the company’s youthful chief financial officer who was plucked off the finance staff last summer to help guide GM through the grave and grave-digging crisis it is now facing.

Young also outlined another of GM’s serious problems. The drumbeat of bad news is drowning the company. “A lot of impact is already in the marketplace. We have anecdotal evidence that that spills over into places like Brazil. We can’t quantify the bankruptcy concerns, but there is an impact. If we have to go through a court process, it’s going to have to be quick,” he said.

Subscribe to TheDetroitBureau.comThe clear implication was that a long stay in bankruptcy court could very destructive to the company’s health. Perhaps any stay is fatal.  GM needs to get customers to focus on the company’s products, not the bad news, Young said during a conference call with reporters and analysts. How GM can do that, given the lack of significant new products and the plentiful supply of bad news is not at all clear, to put it kindly.    (more…)