DOW JONES NEWSWIRES
Struggling auto maker General Motors Corp. (GM) said the company
will address "the tough issues to improve the long-term viability
of the company," including the restructuring of its financial
obligations, as it responded to Washington's calls for stronger
plans to stay afloat.
GM said it has a "strong preference" to complete its
restructuring out of court, saying it would complete a more
accelerated and aggressive restructuring to put the company on
sound long-term financial footing.
"We have significant challenges ahead of us, and a very tight
timeline," said new GM Chief Executive Fritz Henderson. "I am
confident that the GM team will succeed, and that a stronger,
healthier GM will play an important role in revitalizing America's
economy and re-establishing its technology leadership and energy
independence."
Henderson, one of the auto maker's top troubleshooters for
nearly a decade, took over as GM's chief executive early Monday,
following the forced resignation of Chairman and Chief Executive
Rick Wagoner. Wagoner was ousted as a condition of giving the
company another 60 days to craft a plan the government feels will
work.
GM on Monday was scrambling to understand the implications of
President Barack Obama's assessment that the company's efforts to
save itself are falling short and bankruptcy may be the company's
best option.
The company is surviving on government loans and is seeking as
much as $30 billion to stay out of bankruptcy court.
Henderson said the administration has "made it clear that it
expects GM to expand and accelerate its restructuring efforts."
GM submitted an overhaul plan in February, which called for
cutting 47,000 jobs worldwide and drastically shrinking the
company's models, brands and dealers. But people close to the
president's auto task force have said it considered the plans
inadequate to transform the company into a profitable
enterprise.
Shares were down 21% to $2.87 in recent trading amid a broad
decline. The company's stock has lost three-quarters of its value
since September.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com