it did affect image". In April 2005 Wagoner took back personal control of GM's North American car division from GM North American chairman Bob Lutz and GM North American President Gary Cowger in light of its poor performance. In early June 2005 Wagoner announced that GM in the United States would close several plants and shed 25,000 employees (17% of GM's U.S. workforce) by 2008. The cuts will result in GM production reducing output by one million cars and trucks (from 6 million to 5 million). In the Automotive industry crisis of 2008–10, Wagoner came under renewed pressure as GM sought financial support from the U.S. government in an attempt to avoid bankruptcy. During the latter half of 2008, Wagoner and GM maintained that bankruptcy was "not an option that GM is considering," despite rapidly running out of capital. This stance was called "presumptuous" by some observers. Within 9 months, GM was to declare bankruptcy. During hearings for government loans to the Big Three Automakers, Wagoner, Alan Mulally and Robert Nardelli were criticized for flying to Washington, D.C. in corporate jets. For a subsequent meeting, the three CEOs drove from Detroit to Washington by hybrid cars. The BBC reported that Wagoner was popular among GM employees and reporters. However, it cites that he lacked the "ruthless streak needed to make the tough decisions required to bring GM back from the brink of bankruptcy." While analysts have praised Wagoner for operational improvements, cost-cutting moves and an increased focus on vehicle quality, with the appointment of Bob Lutz to oversee product execution, others criticized him for his incremental approach to change, largely as he resisted making the drastic cuts demanded by the US government. Throughout the first months of 2009, Wagoner argued that a bankruptcy would be more costly than a government bailout. However, there remained lingering doubts that he was implementing the restructuring moves necessary to remain viable in the future without further government loans. On March 29, 2009, Wagoner agreed to immediately resign his position as GM chairman and CEO, as part of the Obama administration deal to provide GM with further short-term financing. The following day, the US government rejected GM's initial restructuring plan and gave the company 60 days to come with a new proposal or be forced into bankruptcy. He was replaced as CEO by Fritz Henderson, who had been serving as GM's President and chief operating