GM Comes out of bankruptcy , giving hopes of better American recovery.A new General Motors (GM) emerged from bankruptcy protection on Friday, far more quickly than most industry watchers had expected, as a leaner automaker aiming to win back American consumers and pay back taxpayers.
A whirlwind 40-day bankruptcy for GM concluded with the closing of a deal that sold key operations to a new company that is majority-owned by the US Treasury. The closing documents were signed early Friday by representatives of the government and GM executives at the law firm of Weil, Gotshal & Manges, GM’s bankruptcy counsel.
Ownership:US To Own 60% In New Co, Bondholders 10%
Analysts said the government intervention had given GM a new chance and sharply lower operating costs but left management facing deep challenges given the weak economy and GM’s long-running slide in market share. “I wouldn’t really call it a new GM, it is just a smaller GM. That would be more of an apt description.
GM is cutting its white-collar work force by more than 20% by eliminating 6,000 jobs by October. The reduction in executive ranks will slice deeper, with 35% planned. That bid to shake up GM’s long-criticised corporate culture will be a key issue for Henderson as the 100-year-old automaker seeks to relaunch itself.
GENERAL MOTORS to pursue Indian biz aggressively
“General Motors will continue to remain aggressive in India in order to take advantage of opportunities as they arise,” General Motors India president and managing director Karl Slym said. “Our goal is to continue to provide the best cars to our customers across the country while taking advantage of the extensive global resources offered by the new GM company,” he added.