Thread: GM Emerges From Bankruptcy With CEO Promising Change

Don't buy it for a second. Within a year we will be hearing about GM execs going to some wasteful retreat. This is not their fault, this is just the way business is run here.

Old General Motors Versus New GM, By The Numbers

General Motors exited bankruptcy protection early Friday after completing a faster-than-expected stint in court to revamp its operations and obligations, pledging to "get back to the business of building great cars and trucks" and better serving customers. Chief Executive Fritz Henderson also unveiled a sweeping management revamp, cutting GM's decision-making team in half, and pledged to repay loans from the U.S. government "much sooner" than 2015.

The changes include:

*Operating 37 plants by the end of 2010, down from 47 last year;

*Seeing U.S. employment drop to about 64,000 by year's end from 91,000 at Dec. 31. Henderson noted 35% of GM's executive ranks are being cut, with an emphasis on senior staff. Positions being shed include that of North American chief Troy Clarke. Henderson didn't comment on what role Clarke might assume;

*A reduction of more than $40 billion in obligations, including the reduction of union-retiree health benefits being assumed by a union-run program;

*Shrinking to four brands - Chevrolet, GMC, Buick and Cadillac - from eight. Tentative deals have been reached to sell the Saturn, Hummer and Saab nameplates while Pontiac is slated for elimination;

*The number of U.S. dealerships is slated to fall to about 3,600 by the end of next year from the 6,000 the company had in the spring.

The streamlining could result in the slimmed-down GM losing its title as America's biggest-selling auto maker to Ford Motor Co. (F).

GM plans to return as a publicly traded company, but Chief Financial Officer Ray Young said the soonest it could happen is the second quarter of 2010.

The U.S. owns 60.8% of the new company thanks to the $50 billion of aid it has committed, and the United Auto Workers health-care fund holds a 17.5% stake, with 11.7% going to Canada. The GM left in bankruptcy will get a 10% stake plus warrants to acquire more of the new GM to pay off unsecured creditors.

source

I wish I could buy Hummer.

Originally Posted by The Monkey Man

I wish I could buy Hummer.

It's only $20.00 for one, if you get the old hag without teeth I'm sure you'll get a discount.

Originally Posted by min0 lee

It's only $20.00 for one, if you get the old hag without teeth I'm sure you'll get a discount.

The ones without teeth charge more......so chooby tells me....

Originally Posted by Prince

GM Emerges From Bankruptcy With CEO Promising Change
By Peter Whoriskey

General Motors emerged from bankruptcy early this morning, with chief executive Fritz Henderson promising that the fallen corporate giant will be reformed and that "business as usual at GM is over."

The announcement signals the completion of one of the largest bankruptcies in U.S. history and the next step in what has become a landmark government bailout.

GM was done as dinner. It's a walking zombie.

I also avoided GM, and will continue to do so.

And how long will this charade last? Perhaps GM may function, but it might go down the drain again.