As a result of the sale process, GM will from now be referred to as General Motors Company and will acquire GM's strongest operations. The old GM, which will not survive the sale, will change its name to Motors Liquidation Company, pending the sale or liquidation of its assets.
The new company will have "lower leverage and a stronger balance sheet, which when combined with a lower break-even point, will allow it to reduce its risk, operate profitably at much lower volume levels, and to reinvest in the business in the key areas of advanced technology and product development."
"A healthy domestic auto industry remains vital to the global economy and we deeply appreciate the support the U.S., Canadian and Ontario governments and taxpayers have given GM, and the sacrifices that have been made by so many. This has been an especially challenging period, and we've had to make very difficult decisions to address some of the issues that have plagued our business for decades. Now it's our responsibility to fix this business and place the company on a clear path to success without delay," Fritz Henderson, the company's CEO said in the release.
General Motors Company will be headed by Fritz Henderson, while its board will be lead by Edward Whitacre. Stephen Girsky will be member of the board representing the UAW Retiree Medical Benefits Trust, while six current GM board members will keep their offices in the new company as well: Erroll Davis, Neville Isdell, Kent Kresa, Philip Laskawy, Kathryn Marinello and Fritz Henderson. The Canadian government representative and four additional board members to be identified by the U.S. Treasury will be announced at a later date.
The sale will be completed after a four-day stay ordered by judge Robert Gerber. At the end of the week, the new GM's "business is expected to be immediately operational and fully competitive".