General Motors exited bankruptcy protection early Friday after
completing a faster-than-expected stint in court to revamp its
operations and obligations, pledging to "get back to the business
of building great cars and trucks" and better serving customers.
Chief Executive Fritz Henderson also unveiled a sweeping management
revamp, cutting GM's decision-making team in half, and pledged to
repay loans from the U.S. government "much sooner" than 2015.
The changes include:
*Operating 37 plants by the end of 2010, down from 47 last
year;
*Seeing U.S. employment drop to about 64,000 by year's end from
91,000 at Dec. 31. Henderson noted 35% of GM's executive ranks are
being cut, with an emphasis on senior staff. Positions being shed
include that of North American chief Troy Clarke. Henderson didn't
comment on what role Clarke might assume;
*A reduction of more than $40 billion in obligations, including
the reduction of union-retiree health benefits being assumed by a
union-run program;
*Shrinking to four brands - Chevrolet, GMC, Buick and Cadillac -
from eight. Tentative deals have been reached to sell the Saturn,
Hummer and Saab nameplates while Pontiac is slated for
elimination;
*The number of U.S. dealerships is slated to fall to about 3,600
by the end of next year from the 6,000 the company had in the
spring.
The streamlining could result in the slimmed-down GM losing its
title as America's biggest-selling auto maker to Ford Motor Co.
(F).
GM plans to return as a publicly traded company, but Chief
Financial Officer Ray Young said the soonest it could happen is the
second quarter of 2010.
The U.S. owns 60.8% of the new company thanks to the $50 billion
of aid it has committed, and the United Auto Workers health-care
fund holds a 17.5% stake, with 11.7% going to Canada. The GM left
in bankruptcy will get a 10% stake plus warrants to acquire more of
the new GM to pay off unsecured creditors.