GM Hitches Future to Wagoner

General Motors has announced that Rick Wagon will take over as the company's chairman next year. Jack Smith, the current chairman of the auto giant, is retiring.

Industry analysts say the promotion was not expected, but Smith says Wagoner is the "perfect leader" for General Motors.

The 49-year-old Wagoner is already GM's president and chief executive. He has been with the company since 1977 and has held a number of executive jobs around the country.

The move becomes effective next May.