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GM Emerges From Bankruptcy

'New GM' is $50 billion in debt to taxpayers

By Mark Huffman
ConsumerAffairs.com

July 10, 2009

"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," said Fritz Henderson, president and CEO. "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 GM is a shadow of its former self. Having jettisoned Saab, Hummer, Pontiac and Saturn, the company is now built around its four core brands. After cutting ties with thousands of dealers the company said it has the “strongest dealer network in the country.”

The Chevrolet, Cadillac, Buick and GMC brands remain, with an emphasis on producing smaller, more fuel-efficient vehicles.

"One thing we have learned from the last 100 days is that GM can move quickly and decisively," said Henderson. "Today, we take the intensity, decisiveness and speed of the past several months and transfer it from the triage of the bankruptcy process to the creation and operation of a new General Motors.”

Vowing that “business as usual is over at GM," Henderson said GM is fully committed to listening to customers, responding to consumer and market trends, and empowering the people closest to the customer to make the decisions.

“Our goal is to build more of the cars, trucks, and crossovers that customers want, and to get them to market faster than ever before," he said.

Despite the economic downturn and the steep drop in new car sales, GM says it has been busy designing new cars. Later this year, the Cadillac CTS Sport Wagon and GMC Terrain debut, followed next year by the Chevy Volt, Chevy Cruze and Cadillac CTS Coupe.

Internationally, GM has launched the Chevy Agile in Latin America and introducing the Chevy Cruze and Buick Excelle in Asia Pacific. It’ rolling out the new Opel Astra in Europe.

Last month, GM announced its intention to build a new small car at a plant in Orion Township, Michigan, which will add to GM's growing portfolio of fuel-efficient cars and restore approximately 1,400 jobs.

GM said it has moved aggressively to develop a full range of energy-saving technologies, including advanced internal combustion engines, biofuels, fuel cells, and hybrids. The company also claims to be a leader in the development of extended-range electric vehicles, with its first model, the Chevy Volt, currently undergoing road testing and scheduled to launch in 2010. The new GM is also taking steps to make advanced battery development a core competency, and expects to make additional announcements on this matter late this summer.

"The success of our recent launches and the exciting new vehicles and technologies we have in the pipeline are evidence of our ongoing commitment to excel at everything we do," said Henderson. "Our goal is to make each and every General Motors car, truck and crossover the best-in-class."

GM will not only have fewer brands, but also fewer plants and fewer employees. The executive payroll is being trimmed by 35 percent this year. Henderson said the new GM would attempt the repay the taxpayers who bail the company out, but did not promise the U.S. government will recover all of the $50 billion its invested in the company.

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