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Is Wagoner up to the task? Can an insider, who rose within GM, have the nerve to take the ruthless measures necessary to fix his ailing company? So far, GM's board is standing by its chairman's relatively cautious strategy. The same may not be said of Kirk Kerkorian, the casino mogul and billionaire who owns nearly 10% of GM shares. He has lost an estimated $390 million on his stake and has indicated he may seek board representation. Kerkorian tried to take over Chrysler, and while he isn't expected to try that with GM, he's likely to lobby for Wagoner to speed up the turnaround, if not agitate for a tougher-minded outsider to take the helm.
For his part, Wagoner seems to have lost some of his customary cockiness, sounding more defensive in public appearances. He's also driving on a narrow mountain road. Even a slight slowdown in the economy or a spike in gas prices could put him on the edge as he braces for union negotiations that may determine whether GM survives intact. If there's any solace for Wagoner, it's that he isn't the only car guy in the hot seat. Even Carlos Ghosn, chief of Nissan, the automotive turnaround story of the decade, is experiencing a sales slump, and the company has announced plans to move its North American headquarters from Los Angeles to Franklin, Tenn., to save a few bucks. The bright side for nearby Saturn workers who may soon be out of a job: at least they now know where to send a résumé.