GM is set to emerge from bankruptcy today after the sale of its best assets to the new company majority owned by the US government has been completed. Bloomberg reports:
Shifting assets to the new company allows GM to shed half its U.S. brands, cut more than 6,000 U.S. salaried jobs and idle or close 16 factories. Chief Executive Officer Fritz Henderson has said he will shrink top management by more than a third and speed up decision making.
The new GM will be offering Cadillac, GMC, Buick and Chevrolet.
From the statement released by the company:
“Today starts a new era for General Motors and everyone associated with the company. Going forward, the new General Motors 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.”
From this restructuring, the company’s debt is now trimmed to $48 billion from $176 just prior to bankruptcy. The number of dealers, which was another main concern now stands at 3,600 from the original 5,900. The number of plants has now been cut from 47 to 34.
The bankruptcy process, which began on June 1, has lasted just about the same time as Chrysler. WSJ notes that the first official board meeting is scheduled on the first week of August.
A more comprehensive story is over at WSJ HERE.
See GM’s press release HERE.