GM out of bankruptcy

Posted at July 11th, 2009 under Uncategorized | No Comments »

General Motors, the most public private company in the world has emerged as the General Motor Company on Friday from Chapter 11 bankruptcy protection in the United States. Mr Henderson, took over as CEO of the company.

60 per cent of GM is now owned by the Treasury Department of the US administration of President Barack Obama.

GM is now prepared to change. The management of the new company plans to make decisions faster. The bureaucracy will be shed which was the major reason for the failure of the 100-year-old carmaker. It’s cut its workforce by almost 25,000. 20 per cent of the company’s white-collar workforce will be cut (more than 6000 jobs) and a 35 per cent cut in executive ranks. GM dropped almost 40 per cent of the dealers from an unprofitable network.

The key assets of the company and the Chevrolet, Cadillac, Buick and GMC brands were sold out of bankruptcy to form the new General Motors Company. GM is pledging to win back American consumers. In the next 18 months, GM plans to launch a total of 27 vehicles, 10 in the US and 17 outside the US.

The US government has taken on substantial risks, but Obama’s administration shows its commitment to save jobs and prevent a liquidation of the carmaker.

The Indian subsidiary of GM is all planned to concentrate more on its operations in India in order to take advantage of
opportunities as they arise, without modifying the business plans. The all new Chevrolet Cruze and the Chevrolet mini car will be launched in India soon.