After attempting to influence the direction and turn strategy of General Motors (GM), Kirk Kerkorian has sold out his large stake in the company, leaving them without his constant looking over their shoulder.
Some people think it's good for the company, others think it will take away some checks and balances that Kerkorian's presence always included. Some in the industry say that it leaves shareholders in a weaker position than if he would have kept his stake in the company.
On the other side of the issue, it is said that his departure allows GM to able to focus more clearly on the business and fix its problems.
Dennis Virag, president of Automotive Consulting Group says, “Without Kerkorian looking over their shoulder, I think they’re in a better position to executive a strategy that will be good for GM and GM shareholders. If you look at Kerkorian, he’s a financial investor rather than a strategic investor. And GM at this point in time really needs to look at their business more in terms of a long-term strategy rather than short-term financial gain.”
General Motors CEO Rick Wagoner said in an interview with BusinessWeek magazine that he will have to make more cuts at GM; above the $9 billion he's already done. In next years' negotiations with the UAW, he said he will look to cut health-care costs and simplify the process that the company designs their vehicles.
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