RSS RSS Twitter Twitter
Leftlane - news, reviews, and info for the auto-industry
 
 

GM emerges from bankruptcy

07/10/2009, 8:40 AM

By Drew Johnson

At 6:30am ET, General Motors officially emerged from Chapter 11 bankruptcy protection. The Detroit automaker entered bankruptcy on June 1st, but was able to emerge is just 39 days, largely due to the blueprint laid out by Chrysler’s bankruptcy proceedings.

Company executives promise the new GM – which is majority owned by the federal government – will be leaner and meaner, nixing the over-bureaucratic nature of the old company. “I’m very much looking forward to the point where we’re operating in the clean air and the name of the company not being associated with bankruptcy,” GM sales chief Mark LaNeve told Automotive News just one day before GM emerged from bankruptcy.

GM’s sales plunged by 36 percent in June as it worked through bankruptcy court.

As part of the new plan for GM, the automaker with be thinning its global executive ranks by about 35 percent, with a 20 percent cut in white collar position planned for the U.S. GM says the job cuts will be completed by October.

GM’s emergence from bankruptcy will also see Bob Lutz staying on with the company. Lutz, 77, announced his plans to retire earlier this year but will instead stay on as head of GM’s global marketing and communications. Lutz was the former head of GM’s global development.

No timeframe has been given for GM to pay back its more than $50 billion in taxpayer funded loans, but the company could offer an IPO as early as next year.

    Print This Post

New car price quote

Zero obligation price quote from a trusted local dealer.
 
 

07/10, 8:43 AM

posted by:

DB9

Yeah!:-)) Let the Games Begin…

DB9:-))

07/10, 8:59 AM

posted by:

carstuff

I again predict a profit in the first quarter IF US sales go above 10 million this year.

With all the structural reductions the cost to do business is way down.

07/10, 9:22 AM

posted by:

idrinorbarsaku

they might be out of bankruptcy financially wise, but when it comes to the people that buy their cars, all they will see is BANKRUPTCY written all over their vehicles!

07/10, 9:27 AM

posted by:

zfenderguy

idrinorbarsaku – you’re right, people are that stupid!

07/10, 9:47 AM

posted by:

Borat

We, the people, still own good enough chunk of this brick ….house to assure with our hard earned taxes that UAW workforce and GM management will live and prosper. The corporate failure or prosperity has nothing to do with it, nor does opinion/wish of electorate: every news outlet, including this fine and reliable source of information, noted that 2/3 of US population does not want to support this fiasco. NMOFGM your future is safe with us and our support.

07/10, 9:48 AM

posted by:

Bankruptcy2009

idrinorbarsaku you have to be a GM diehard to want a GM product. And yes their are some of the dumbest people on planet earth that insist on buying a GM product even if its the ugliest least dependable, least efficient,vehicle going. But they call themselves GM nation . Just take a look @ NMOFGM and look no further. He is what I call a classic Redneck and with two functional brain cells that tells him to do or four basic human functions in life and one of them is to Buy GM and that’s it! And one of em is to buy a GM product no matter how bad it is or the fact the company was driven into bankruptcy as my name implies. As I said before, GM could use a Huge does of becoming Humble as a Company not as Arrogant and Pompus as they WERE and still ARE but at least this Bankruptcy has them a little unsure of themselves as they took a Knockout Punch with that Bankruptcy. If GM is to survive they need to become more Humble. True Greatness from any company does not happen by Arrogance or by acting in a Braggado manner. Take a look at the competition GM they’ve been stealing your Lunch and Dinner and I love it all the while you “Try” and Bash the Leading Domestic and Foreign competitor who out think and Out Wit you constantly!

07/10, 9:50 AM

posted by:

CADDY-V

That was fast!
I say in two years people will be asking why they didn’t make this move sooner.
GM as a company may have fu*ked up a lot but you have to be honest they got some winners right now.
With the new Caddy’s and Buick’s coming and them trimming their line having less autos and more money to focus on the building/advertising of their core brands all I can say is “It’s on”.

07/10, 9:56 AM

posted by:

injunraiv

Bankrupcy, I don’t think I need to look past all your misspellings and typos to get an idea about your intellectual capacity, and you have the nerve to call GM customers dumb. Your allegations about GM making the least efficient are at best off base, and your argument is just frigging stupid.

Thanks for playing, but you’re obviously out of your league here.

07/10, 9:59 AM

posted by:

Borat

Bankruptcy2009, you can state the same identical thing about your employer – Ford. The only difference, Mullaly avoided bankruptcy until now. However, the day is still young. Working for any domestic manufacturer, that loses money similarly to drunken sailor, I would refrain from casting stones.

07/10, 10:02 AM

posted by:

skyaficionado

@Bankruptcy2009

Insulting someone else’s intelligence is more effective when it presented in an intelligent manner.

Obivously, bankruptcy isn’t going to do anything for GM in terms of public confidence, so they’re going to have to make up for that with innovative and creative design. In order to maintain a decent market share through any of thise, GM is going to have to come out with more exceptional vehicles that will get the public to realize the benefits that came with the bankruptcy.

What they really need is more award winning, renowned vehicles like the new Malibu, and they need to use every little bit of cost savings they’ve made from bankruptcy in order to make each and every vehicle not only equal to their competitors, but better and cheaper. Only after they’ve built a reputation for this in common vehicles (not just trucks) will they have any semblance of safety.

The general public has a short collective memory, but that is GM’s biggest obstacle right now.

07/10, 10:11 AM

posted by:

BennySuts

Bankruptcy2009, I have owned several GM vehicles, and a Honda. I have replaced a transmission in a honda, and have yet to do so in my GM cars. But I want to thank you for opening my eyes and letting me know that when I drive home today that I bought a pile of crap that may disintegrate at any given moment. And if anyone is very good with math, please calculate exactly how much a taxpayer put out of thier own pocket to “bailout” GM. My guess is that it’s probably a ridiclulously low amount. I find it funny when people argue that “My tax dollars bailed them out” seriously, think about all the tax money you have paid in your life. If you knew where every dollar went, you would be more disgusted with that then the $1.50 you “gave” GM.

07/10, 10:19 AM

posted by:

johnnycanuck

Now that this little escapade is behind us I strongly suggest that it be included in the mandatory curriculum for the high schools of both our great nations. Just imagine, if all our youth knew it was possible to come out this quickly unwanted teenage pregnancies would be a thing of the past.

07/10, 10:23 AM

posted by:

CADDY-V

BennySuts:
I know how you feel when I have to force myself to get into my CTS-V and drive that piece of crap around it makes me mad that I have bought 1 Pontiac and 2 Cadillac’s in the past 6 years and never had 1 problem with any of them. Dam you GM for making cars I enjoy driving. I don’t see any other companies putting 556HP in a 60K car dam you again GM.

The ‘My tax money” think is dumb and lame.

07/10, 10:25 AM

posted by:

gta89mike

BennySuts – excellent point. Supposedly $10 billion a month in Iraq since 2003. Look at all the helicopters and “AIr Force One” that the president rides around in. Remember the fiasco with Clinton, I think, about him getting a haircut on Air Force One, and this haircut supposedly cost thousands? And these are just obvious expenditures, not to mention all the daily things we don’t even know about. $50 billion is a drop in the bucket, and if it wasn’t spent on GM, it would have been spent in 5 months in Iraq. We would still have soldiers being killed in Iraq and no domestic auto industry, with hundreds of thousands of jobs lost in America. At least our “tax money” is going to reinvest in America instead of rebuilding someone elses country.

07/10, 10:34 AM

posted by:

A4

Leaner and meaner? That probably just means some skinny guy is going to yell at me until I buy a Chevy.

07/10, 10:34 AM

posted by:

BennySuts

gta89,
I don’t want people to think I was trying to disrespect our armed forces, because any money spent to keep the right equipment in thier hands or shielded from attack is money well spent to me. But I would rather have them home as well. If anything, money loaned to GM which in time may or may not be paid back versus 750 billion given to banks with little or no restriction, and many little things thrown in by each congress member, and then admitting that most didn’t even read the bill before it passed makes me cringe as well.

07/10, 10:44 AM

posted by:

JakeK66

A4 –

Howie Long isn;t that skinny… Too bad Billy Mays isn’t here to sell this to the public. RIP Billy Mays

07/10, 10:45 AM

posted by:

CADDY-V

A4:
I only buy my GM vehicles from skinny people.

07/10, 11:23 AM

posted by:

leftwingagenda

chrysler had some lingering lawsuits after they supposedly emerged, i’m waiting to see whether gm has any lingering lawsuits as well…otherwise, gm stock is up over 30% today, if you were a bottom feeder and took the risk on it…

07/10, 11:31 AM

posted by:

gta89mike

Benny
No disrespect to our armed forces either. It just seems that a lot of the money being spent there is to help rebuild their infrastructure and government. And to fight a war that the whole world seems to believe never should have started. But that is not the point. Billions and billions of dollars are spent on all sorts of things that we don’t even know about. But yes 750 billion to the banks with no oversight, and then 50 billion to GM and now 65% ownership. Doesn’t seem fair.

07/10, 5:12 PM

posted by:

andy

i’m pretty sure that Bankruptcy2009’s mother was on crack during pregnancy, and that the **** he types, he types with his retarded crack baby face, and because of some retarded-faced-crack-baby miracle he doesnt have more spelling mistakes… my guess is it’s all in the nose, get the nose right on those little crack babies and they can smash their face all day into keyboards with little more than a handful of typos

i sort of want to congratulate him, but then i think of Sloth from The Goonies and start to chuckle….

anyways, as it stands now the new ‘New GM’ lineup is looking excellent. As long as they keep this up and only improve (ahem fwd caddy, really?), they should recover from this fiasco quite well

07/10, 5:53 PM

posted by:

Need more oil for GM is an idiot

Gm is so awesome nobody wants their junky cars in their driveways.

Dont buy Gm, buy foreign

07/10, 7:05 PM

posted by:

Borat

Spending on our armed forces, infratructure projects, education, disaster relief are functions of our government that have checks and balances in constitution and legal system. Bailing out failed private companies was not written in constitution and our government has no mechanism to perform the task. We do not have Automotive committee in Senate nor congress and that will certainly lead to abuse by any administration: checks and balances.

07/10, 9:19 PM

posted by:

idrinorbarsaku

i thought this was kinda cool. an email i got today from the “New GM”

“Dear Idrinor Barsaku,

Today we are pleased to announce there is a new GM. Please take note that General Motors Corporation, Saturn LLC, and Saturn Distribution Corporation sold a substantial amount of their assets to a new legal entity, General Motors Company (”GM” or “New GM”). This email is being sent by New GM on behalf of both General Motors Corporation and New GM.

We want to keep you informed about updates that are relevant to you. General Motors Corporation, Saturn LLC, and Saturn Distribution Corporation are transferring your personal information (e.g., your contact information and vehicle purchase history) to General Motors Company. General Motors Company has substantially the same privacy policies in place as General Motors Corporation had. If you do not want to receive marketing messages from GM, call 1-866-MY-PRIVACY (1-866-697-7482) or visit our Consumer Preference System website at gmcontactpreferences.com. To review the new GM Privacy Statement, click here.

We would like to remind you that dealers of GM vehicles will continue to service GM vehicles and honor GM vehicle warranties.

The New GM is positioned for a profitable, self-sustaining and competitive future. What’s more, the New GM has several new products and technologies on track to debut, including key vehicle launches in 2009 and 2010. GM has a strong commitment to improving the fuel efficiency of its vehicle fleet, meeting or exceeding new federal fuel economy and emissions regulations, and pushing ahead with advanced propulsion technology. This is highlighted by GM’s extended range electric vehicle, to be introduced in 2010. GM also expects to have 14 hybrid models in production by 2012. “

07/11, 12:24 AM

posted by:

Architect

Bankruptcy2009:

You do realize that we’re all laughing at you since your posts are as RIDICULOUS as NMOFGM, just at the opposite end of the spectrum.

07/11, 8:03 AM

posted by:

gta89mike

Last I checked, the auto money is a loan, not bailout, Borat. What about the 750 billion bailout, not loan, to the banks. is that in the constitution?

07/11, 10:44 AM

posted by:

ihustle

THIS JUST IN,

GM EMERGES FROM CHAPTER 11. JUST TO BECOME GOVERNMENT MOTORS.

07/11, 9:22 PM

posted by:

llt21

ANDY I got a question

You said “as it stands now the new ‘New GM’ lineup is looking excellent. As long as they keep this up and only improve (ahem fwd caddy, really?), they should recover from this fiasco quite well”

What “NEW LINEUP” has GM incorporated from “Today” since they entered Chapter 11? They are selling the same vehicles they “TODAY” that they were selling in “MAY 2009″ So once again what “NEW LINEUP” do you speak of?

How does GM recover from this? After emerging from Chapter 11 they still have 47 BILLION in Debt. They owe the Government 50+ BILLION. GM loses $3,000 per vehicle. So how will they recover from this?

How ANDY??

Thank GM keep it up

07/12, 12:17 AM

posted by:

carstuff

llt21 you will probably never see this but bankruptcy has taken away so much overhead and fixed cost that GM is probably the lowest cost producer of all the OEM’s. They owe $48 billion yes, but Ford still owes $150 billion. And if sales do not start improving they will also be asking for money. I forsee though the government loaning Ford the money instead of supporting them thru DIP financing if they can put off the crisis till the economy gets better.

07/12, 1:41 PM

posted by:

andy

llt21: sorry should i have said resent redesigns/updates and upcoming models? CTS/CTS-v + coupe and wagon, SRX, Equinox, Malibu, Caprice, Volt, Cruze, Camaro, Traverse, Enclave, Lacrosse, hybrid Silverdao/ Sierra, Terrain, Beat, Converj

07/12, 6:12 PM

posted by:

llt21

carstuff

out of all of you rambling, i did read on how you think GM will repay 48 Billion + 50 BILLION to the taxpayer. instead you bring in Ford, which has nothing to do with GM paying back their debts.

Thank GM keep it up

07/12, 9:51 PM

posted by:

A.J.

If they can get out of CH11 that fast, I don’t think they will have any trouble at all getting back in the game and winning it in some cases. I just hope that they don’t spiral into CH11 again, or worse, CH7.

Best of luck.

 
 
You need to log in with your user name and password before you can leave comments.

    

Forgot your Password?

Don't have a user name yet? Simply fill in the form below and click the link provided in the
confirmation email. You must supply a valid email address to complete the registration process.

  
 
 
 
 
  • Login
  • About
  • Contact
Please note that you need to log in with your user name and password before you can leave comments.
  

login
cancel
Forgot your Password?
Don't have a user name yet? Click here to register now.

Simply fill in the form below and click the link provided in the confirmation email. You must supply a valid email address to complete the registration process.

  
submit
cancel
Leftlane is the leading source for automotive industry and vehicle news, new car research, future vehicle information, and reviews. Read by car shoppers, driving enthusiasts, autoworkers, executives, and investors, the website is updated throughout the day with the very latest auto news - as it happens.

Leftlane also provides consumers with accurate and media-rich information on every car currently on the market. In-market shoppers can review specs, read overviews, view high-resolution images, watch videos, and estimate pricing. No other automotive publication brings together the same degree of timeliness, thoroughness and accuracy as Leftlane.
 
submit
cancel