New GM Details Emerge

Bankruptcy was inevitable and everybody knows it, even The General admits it. But Chapter 11 isn't necessarily a bad thing as the future General Motors, often referred to as the "New GM" seems to have a brighter future than the collapsing company we get used to.

General Motors finally confirmed it will step under Chapter 11 protection and together with this announcement, it also rolled out details on how the New GM will attempt to deal with its future. First of all, all those involved in GM's bankruptcy process, no matter if we're talking about the company's chief executives, President Barack Obama or US Task Force's officials, hope the new GM will be a "leaner, faster and more customer-focused enterprise" that could succeed in such a difficult economic environment.

But beside all of these, the New GM will have several major and clear goals. It will focus on four core brands - Chevrolet, Cadillac, Buick and GMC - with fewer models but more focused on the key attributes of today's markets. It will struggle to increase investments in fuel economy and advanced propulsion technologies. It will attempt to fully benefit from the US production capacity and maximize sales of cars build in the country. Last but not least, it will aim to provide a better customer service across the United States through the remaining 3,600 dealers.

The New GM will hold around $17 billion in total consolidated debt which will be comprise of:

• $6.7 billion of debt owed to the U.S. Treasury
• $1.3 billion of debt owed to the Canadian and Ontario governments
• $2.5 billion of notes issued to the new Voluntary Employee Beneficiary Association (New VEBA)
• Approximately $6.8 billion of other, primarily international debt, but excluding Europe

Additionally, the newly-formed entity will host a number of vehicle launches in 2009 and 2010 which are expected to support the company's growth the United States. For example, the New GM will debut the new Chevrolet Camaro, the all-new Buick LaCrosse premium midsize sedan, the luxury midsize Cadillac SRX crossover and CTS Sport Wagon, Chevy Equinox and GMC Terrain, Chevy Cruze and the long-awaited Chevrolet Volt extended-range electric vehicle.

"Our products are our future, and our lineup of new cars and crossovers are a great foundation for success," said Fritz Henderson, GM president and CEO. "The New GM is here to stay, and our brands position us to compete well in profitable segments with vehicles that are second-to-none."

"The New GM will become a long-term global leader in the development of fuel-efficient and advanced-technology vehicles. In doing so, the New GM will contribute to the development of advanced engineering and manufacturing capabilities in the United States, which are critical to the future of the U.S. economy."