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GM exits bankruptcy

General Motors has exited bankruptcy after overhauling its sales and marketing structure. Management changes are likely as the ‘new GM’ becomes leaner and better focused.

The new GM will own four key brands – Cadillac, Chevrolet, Buick and GMC - and will be 61% owned by the US Government.

President Barack Obama has supported the plan, but stressed that the government did not wish to be involved in the day-to-day running of the manufacturer.

At a packed press conference, GM chief executive officer Fritz Henderson said: “Business as usual is over at General Motors.

"Everyone associated with the company must realise this and be prepared to change – and fast.”

The new organisation will operate with 27,000 fewer staff and 13 fewer car plants in the US compared with last year.

It will continue with the same GM logo – blue with white GM letters.

"A successful auto company needs to focus on both the cost and the revenue sides of the business," said Henderson.

"Success on the revenue side means building the stylish, high-quality, fuel-efficient vehicles that customers want - and getting them to market fast."

Bob Lutz, former chief of product development had been scheduled to retire as vice chairman at the end of the year.

He will now take a new position as vice chairman overseeing creative brands, marketing and communications.

Over the next 18 months, GM plans to launch 10 vehicles in America and 17 outside the US.

Talks are ongoing to sell Opel/Vauxhall, Hummer and Saab.

 

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