CHICAGO, July 10 (Xinhua) -- General Motors, the
biggest U.S. automaker, has exited bankruptcy protection with reduced debts of
48 billion U.S. dollars in 41 days, far quicker than expected.
Announcing the news at a press conference in Detroit
early Friday morning, GM President and CEO Fritz Henderson said this is an
exciting day for GM. "We will work hard to repay the trust and the money that so
many have invested in GM," he said.
The file photo taken on May 30, 2009
shows the exterior of a General Motors (GM) dealer in Michigan, the United
States. GM, once the world's largest and most powerful auto maker, exited
Chapter 11 protection Friday after a 40-day reorganization July 10, 2009.
(Xinhua/Gu Xinrong) Photo Gallery>>>
The new company, which emerged after a 41-day stay in
court, vowed to end "business as usual" and immediately announced a shake-up of
its management team, eliminating its North American president position and some
other top jobs.
Henderson will take responsibility for GM's
operations in North America. Nick Reilly will be named executive vice president
of GM International Operations, which will be based in Shanghai.
Despite the changes announced this morning, GM will
make the bulk of its management changes, including cuts of its top management
ranks by 35 percent, by the end of the month.
"To speed day-to-day decision-making, two senior
leadership forums, the Automotive Strategy Board and Automotive Product Board,
will be replaced by a single, smaller executive committee, which will meet more
frequently and focus on business results, products, brands and customers," GM
said in a statement.
"There are no third chances," Henderson said, adding
that the company does not plan to seek additional government assistance.
The White House praised GM's exit. "While this
restructuring required difficult and painful sacrifices from all of the
company's stakeholders and the American taxpayers, it has saved tens of
thousands of American jobs and positioned GM to reclaim its position as a
competitive and sustainable global company," the White House said in a
statement.
"The hard work of charting a path to viability now
rests with GM's board and management, but we are confident that we remain on
track to ultimately see returns on these taxpayer investments," GM said.
GM and U.S. Treasury Department officials signed the
documents at the company's primary bankruptcy law firm in New York on Thursday
night.
The Detroit automaker has shed billions in debt,
cutting four of its eight brands and trimming its work force significantly,
among other measures.
Its good assets had been approved for sale to a group
headed by the U.S. Treasury, though the Obama administration insists it will not
"micromanage" the company.
The government, in exchange for agreeing to invest 50
billion U.S. dollars in GM, will hold a 60.8-percent stake in the company.
In addition to the U.S. government's controlling
interest, the United Auto Workers union gets a 17.5-percent stake of the company
through its retiree health care trust, and the Canadian government will control
11.7 percent.
Henderson disclosed that GM has received all of the
50 billion dollars, though he said some of the government money is held in
escrow.
The file photo
taken on April 14, 2009 shows a "GM Next" board at the General Motors (GM)
headquarters in Detroit, the United States. GM, once the world's largest
and most powerful auto maker, exited Chapter 11 protection Friday after a
40-day reorganization July 10, 2009. (Xinhua/Gu Xinrong) Photo Gallery>>>
The new GM will begin with a much stronger balance
sheet, including U.S. debt of about 11 billion dollars, which excludes preferred
stock of 9 billion dollars, and could change under fresh-start accounting. In
total, obligations have been reduced by more than 40 billion dollars, GM said.
The parts of GM not moving to the new company will
become part of "old GM," a collection of assets and liabilities that will be
sold to pay creditors.
GM said the company is launching a "Tell Fritz"
website to improve customer communications. Starting in August, Henderson will
be on the road every month and around the world to meet with customers and
others.
"We need to listen to the people who matter most --
the people who own and drive General Motors cars and trucks," he said.
Henderson said GM would do its best to create
shareholder value to improve the return to taxpayers. GM's compensation
practices must be approved by the Treasury Department's special master.
GM noted that by the end of 2010, the company will
operate 34 assembly, powertrain and stamping plants, down from 47 in 2008, and
capacity utilization is expected to reach 100 percent during 2011.
Chevrolet pick-ups are seen outside a
to-be-closed General Motors (GM) dealership in Michigan, the United States
in this file photo taken on May 30, 2009. GM, once the world's largest and
most powerful auto maker, exited Chapter 11 protection Friday after a
40-day reorganization July 10, 2009. (Xinhua/Gu Xinrong) Photo Gallery>>>
The company's overall U.S. employment will decline
from about 91,000 at the end of 2008 to about 64,000 at the end of this year,
"creating a company sized to respond quickly to changes in the market, while
still retaining the global scope necessary to develop world-class products and
technologies," GM said.
GM will launch 10 vehicles in the United States and
17 outside in the next 10 months. The company also vowed to try an experimental
program in California to sell vehicles via auction on eBay.
Detroit Mayor Dave Bing congratulated GM on its quick
exit, saying the emergence of a new GM is an encouraging sign of progress for
the auto industry and the city as well.
CHICAGO, July 6 (Xinhua) -- General Motors Corp. has won
court approval to sell its best assets to a government-owned company, paving the
way for a swift exit from Chapter 11 bankruptcy less than 40 days after the
corporation filed for protection.
According to a Detroit News report, U.S. Bankruptcy Judge
Robert Gerber said in his 95-page ruling late Sunday that "GM cannot survive
with its continuing losses and associated loss of liquidity, and without the
governmental funding that will expire in a matter of days." Full story
BEIJING, June 29 --
General Motors Corp has agreed to take on responsibility for future product
liability claims, removing what could have been a sizable roadblock on the auto
maker's path to a quick sale of its assets and emergence from Chapter 11
bankruptcy as a new company.
As part of its government-backed restructuring plan, GM
wants to sell the bulk of its assets to a new company and leave behind
unprofitable assets and other liabilities such as product-related lawsuits. A
hearing on the proposed sale is set for tomorrow. Full story
BEIJING, July 1 (Xinhua) -- The U.S. automaker General
Motors Corp. said here Wednesday that its auto sales in China in the first half
of 2009 rose 38 percent from the same period last year to a record high of
841,442 units, spurred by the government stimulus package.
"Thanks to government stimulus measures on the auto
industry and the rising demand in subordinate cities and rural areas, China's
auto market had seen a strong growth and GM's products had been very popular,"
said Kevin Wale, president and managing director of GM China Group. Full story
National flags of the United States
flutter in front of the logo of Saab at a car dealership in New York, the
United States, April 7, 2009. Saab Automobile, the troubled Swedish unit
of Genral Motors Corp, has been contacted by 20 potential buyers, with a
sale planned in June, the carmaker's lawyer said on Monday. The lawyer
also said a sale of the company is a "crucial prerequisite for a
successful reconstruction." (Xinhua/Liu Xin) Photo Gallery>>>
CHICAGO, June 16 (Xinhua) -- U.S. automaker General
Motors Corp.(GM) agreed Tuesday to sell Saab automobile, its struggling Swedish
unit known for its family cars, to a consortium led by Swedish Koenigsegg
Automotive AB, a tiny luxury carmaker, reports reaching here said.
GM, which filed Chapter 11 bankruptcy on June 1, said
in a memorandum of understanding that the sale would include an expected
600-million-U.S.-dollar funding commitment from the European Investment Bank,
guaranteed by the Swedish government. Full story
