# New GM Emerges from Bankruptcy



## Administrator (Mar 14, 2008)

Today the sun rose on a New General Motors, a move which will also see the sun set on a lot of people's careers. GM emerged from bankruptcy protection at 6:30 a.m. Eastern Time with news of a serious corporate restructuring plan that will take effect over the next few months.

Due to leadership (and in some cases arm-twisting) by the Obama Administration, the new GM, headed by CEO Fritz Henderson, is poised to return to its once-great status after shedding its debt and healthcare obligations by a massive $48 billion. Much of this comes as the UAW made serious concessions in accepting a new contract with the automaker. GM also hopes to significantly reduce its cash-burn after eliminating a third of it's dealership network. Additionally, the automaker looks to profit from the sale of the Saturn, Saab and Hummer brands, as well as through selling-off much of its stake in its European operations, including Opel to Canadian autoparts manufacturer Magna International.

"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," CEO Fritz Henderson said in a statement.

Henderson's plan will see 6,000 (or 20 percent of) white-collar employees loose their jobs by October, with 35 percent of all executives being dismissed. Many executives will be cut from the company's old Automotive Strategy Board and Automotive Product Board, a complex, multi-tiered system of management which will be axed in favor of a small committee that will meet weekly to make decisions about the future of the company.

Henderson says the move will cut those making the decisions at GM in half as the automaker focuses on its four key brands - Chevrolet, Buick, GMC and Cadillac.

Sales and Marketing will also no longer be under the leadership of one individual, as that part of the company is split. Sales will report directly to Henderson, who was unclear about what that meant for the current Sales & Marketing boss, Mark LaNeve. GM will also bring back veteran Bob Lutz to manage marketing, as well as design, brands and communications.

This will be a particularly vital role as GM looks to introduce a new line of vehicles into the marketplace to help re-brand the company. In total 10 new vehicles will launch in the U.S. in the next 18 months, with 17 overseas.

More: *New GM Emerges from Bankruptcy* on AutoGuide.com


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## GM4life (Mar 18, 2007)

That was quick and painful.


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## ppurfield001 (Jan 21, 2008)

Administrator said:


> Today the sun rose on a New General Motors, a move which will also see the sun set on a lot of people's careers. GM emerged from bankruptcy protection at 6:30 a.m. Eastern Time with news of a serious corporate restructuring plan that will take effect over the next few months.
> 
> Due to leadership (and in some cases arm-twisting) by the Obama Administration, the new GM, headed by CEO Fritz Henderson, is poised to return to its once-great status after shedding its debt and healthcare obligations by a massive $48 billion. Much of this comes as the UAW made serious concessions in accepting a new contract with the automaker. GM also hopes to significantly reduce its cash-burn after eliminating a third of it's dealership network. Additionally, the automaker looks to profit from the sale of the Saturn, Saab and Hummer brands, as well as through selling-off much of its stake in its European operations, including Opel to Canadian autoparts manufacturer Magna International.
> 
> ...





Well, at least one good decision was made with regards to KEEPING Bob Lutz as the Director of Product Development. Maybe Lutz can at least slow down the "weenie-ing" of GM that many politicians want, including the Messiah, and maybe Lutz can also convince GM that if all it does is make Prius-type vehicles, they are forgetting their "sweet spot" for some of us (GTOs, G8 GXP and GT, CTS-V, Camaros, ZO6 Vettes, etc.). There is room, after all, for a DIVERSE product line.


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## ScottieDogFLA (May 28, 2009)

It is indeed a new beginning... of the end.
The "good news" is not going to last.


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