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New GM Emerges from Bankruptcy

3341 Views 1 Reply 2 Participants Last post by  LornaAsira

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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I hope they do something about those of us with GM car's that are lemons. I had to take my Solstice in 3 months after I bought it for a leak and in the last 3 years have gone back over a dozon times for the same problem. (Rear Differental). I'm just recently told of a "Buy Back" program so I contacted GM. . I don't want them to buy it back, just replace it since the propblem is unfixable. I'm informed that because I have over 40,000 miles on it. The warrenty is expired. Ok, first I have an extended warrenty and second, it should'nt matter how many miles are on the car it's BROKEN! What difference does the milage make, it has a problem. . .hence all the return visits to the repair shop.
GM's offer. . .3 free oil changes, tire rotations and they will go over the differential with a fine tooth comb at those visits. GREAT (joke) customer service. Be sure to remind my family the free stuff I got after all of my complaints to you at my funeral when the seal blows again and my rear tires lock up and I'm killed.
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