Trimmed downed GM Emerges From Bankruptcy After Government Bailout

July 10, 2009

(ChattahBox) — General Motors (GM) has emerged from bankruptcy protection after creating a “new GM” made up of the carmaker’s best assets and now majority-owned by the U.S. government.

The leaner GM will operate with 27,000 fewer US employees, 13 fewer US car plants and have reduced their debt by over $150 billion dollars.
What remains for what used to be the world’s largest car manufacturer is four key brands Chevrolet, Cadillac, Buick and GMC,  3,600 dealers, $11 billion in U.S. debt, and 61% ownership by the US government, 17.5% by the  Canadian governmen, while the United Auto Workers retiree trust will own 17.5%, leaving 10% to the so-called old GM.

Salaried employment will fall by 20 percent, and the number of U.S. executives will drop by 35 percent to help to cut costs going forward and to speed decision making.

Chief Executive Officer Fritz Henderson said negotiations were continuing “around the clock” to conclude a deal to sell GM Europe, which includes Opel and Vauxhall.

Henderson said that GM would take the “intensity, decisiveness and speed” of the bankruptcy process and apply it to the new company.

“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,” he said.

Source


Comments

One Response to “Trimmed downed GM Emerges From Bankruptcy After Government Bailout”

  1. Carz on July 25th, 2009 5:08 pm

    It’s sad that the greed of the people from a certain firm will ripple down its biggest effects to the most innocent of people: the employees. I hope GM does make up for these people they aggravated bigtime.

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