As announced earlier today, American manufacturer completed the sale of its assets over to the new company, thus exiting the bankruptcy process and ushering a new era in the American automotive industry. With both Chrysler and GM out of the woods, the industry is now relieved of the pressure to which it has been subject to this year.
"Today marks a new beginning for General Motors, one that will allow every employee, including me, to get back to the business of designing, building and selling great cars and trucks and serving the needs of our customers," Fritz Henderson GM CEO said. "We are deeply appreciative for the support we have received during this historic transformation, and we will work hard to repay this trust by building a successful new General Motors."
The new structure of General Motors Company is now comprised of four US based core brands: Chevrolet, Cadillac, Buick and GMC. All four will have a total of just 34 U.S. nameplates by 2010 aimed at providing better products and stronger marketing. Still, the restructuring process continues, as GM is in the process of reducing the number of GM dealers in the U.S. from 6,000 this spring to approximately 3,600 by the end of next year.
It's not all milk and honey though. GM's workforce will continue to be reduced, as overall US employment will decline from about 91,000 at the end of 2008 to about 64,000 at the end of this year, meaning that a total of 27,000 people have or will be sent home.
The new GM's balance sheet is stronger than before. In total, obligations have been reduced by more than $40 billion, representing mostly unsecured debt and the VEBA trust fund that provides medical benefits to UAW retirees.
"Today we launch the new General Motors, and our promise is simple. We will be profitable, we will repay our loans as soon as possible, and our cars and trucks will be among the best in the world," said Henderson. "We recognize that we've been given a rare second chance at GM, and we are very grateful for that. And we appreciate the fact that we now have the tools to get the job done."
"Today we launch the new General Motors, and our promise is simple. We will be profitable, we will repay our loans as soon as possible, and our cars and trucks will be among the best in the world," said Henderson. "We recognize that we've been given a rare second chance at GM, and we are very grateful for that. And we appreciate the fact that we now have the tools to get the job done."
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