backtop


Print


The U.S. taxpayers are now the proud owners of a 60-percent stake of a post-bankruptcy GM. The company emerged from bankruptcy this morning.  (Source: AutoBlog)

Leading GM's new lineup next year will be the all-electric 2011 Chevy Volt.  (Source: GM)

Bob Lutz, a veteran of GM and Chrysler, shown here in a Maxmium Bob "Action Figure" made by auto enthusiasts, will unretire and return to the company as a vice chairman in charge of the vehicle design creative process.  (Source: Patrick Arena/The Car Lounge)
GM is ready to hit the streets once more

Bankruptcy didn't keep GM down for long.  With a multitude of offers for GM Europe on the table and Saturn and Hummer offloaded to the Penske Automotive Group and a Chinese buyer, respectively, GM has trimmed its fat and is ready to move ahead with its core brands -- Buick, GMC, Chevy, and Cadillac (Pontiac is being phased out and Saab was also sold, to Koenigsegg).

This morning, only six weeks after it entered bankruptcy court as the nation's largest industrial bankruptcy to date, a new GM emerged from Chapter 11 bankruptcy.  The new company, as previously established, will be owned by the U.S. and Canadian governments and the UAW healthcare fund.  Bondholders -- those who held GM's debt, which has been cleansed, also will hold a smaller, but substantial stake in the company.

The U.S. government, which has invested $50B USD in GM so far, is the proud new owner of a 60 percent stake in GM.  Canada, which is also deeply vested in the company's bailout gets an 11.7 percent stake.  And the UAW is handed a hard-fought 17.6 percent stake, which it says will help it fulfill its pension and medical obligations.  The bondholders get the remaining 11.3 percent.

Fritz Henderson, president and CEO of the company comments, "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. 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 company will not be publicly traded, and those who previously held stock are essentially wiped out.

Another major piece of news from GM was that enigmatic, and at times controversial, executive Bob Lutz is unretiring and returning to GM as vice chairman responsible for all creative elements of products and customer relationships.  Reporting directly to Henderson, Mr. Lutz will help guide GM's the creative design of GM's new vehicles.

GM is also launching a new website called "Tell Fritz" where customers can interact with the CEO.  Describes Mr. Henderson in the GM press release, "Beginning next week, we will launch a 'Tell Fritz' website where customers, or anyone else, can share ideas, concerns, and suggestions directly with senior management. I will personally review and respond to some of these communications every day."

The new GM looks to release its Chevy Volt all electric vehicle in 2011.  The Volt's impending launch is one of the most high anticipated vehicle releases to date.




"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis







Latest Blog Posts






botimage
Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki