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| Leaner GM emerges from bankruptcy | Leaner GM emerges from bankruptcy |
| (about 2 hours later) | |
| General Motors (GM) says it has emerged from bankruptcy protection after creating a "new GM" made up of the carmaker's best assets. | General Motors (GM) says it has emerged from bankruptcy protection after creating a "new GM" made up of the carmaker's best assets. |
| GM chief executive Fritz Henderson said it was the beginning of a "new era". | GM chief executive Fritz Henderson said it was the beginning of a "new era". |
| The leaner GM will own four key brands including Cadillac and will be 61% owned by the US government. | The leaner GM will own four key brands including Cadillac and will be 61% owned by the US government. |
| Mr Henderson said negotiations were continuing "around the clock" to conclude a deal to sell GM Europe, which includes Opel and Vauxhall. | Mr Henderson said negotiations were continuing "around the clock" to conclude a deal to sell GM Europe, which includes Opel and Vauxhall. |
| It's easy to dismiss, even ridicule these changes. But they're more than purely cosmetic Greg Wood, BBC North America business correspondent Greg Wood: GM's big changes New chairman, new to the industry | It's easy to dismiss, even ridicule these changes. But they're more than purely cosmetic Greg Wood, BBC North America business correspondent Greg Wood: GM's big changes New chairman, new to the industry |
| Mr Henderson said that GM would take the "intensity, decisiveness and speed" of the bankruptcy process and apply it to the new company. | Mr Henderson said that GM would take the "intensity, decisiveness and speed" of the bankruptcy process and apply it to the new company. |
| "We will be profitable, we will repay our loans as soon as possible and our cars and trucks will be among the best in the world," he said. | "We will be profitable, we will repay our loans as soon as possible and our cars and trucks will be among the best in the world," he said. |
| A smaller GM is being created with a reduced workforce, smaller dealer network and less debt. | A smaller GM is being created with a reduced workforce, smaller dealer network and less debt. |
| 'Cautiously optimistic' | 'Cautiously optimistic' |
| Industry analysts interpreted the short timeframe of the bankruptcy as a good sign. | Industry analysts interpreted the short timeframe of the bankruptcy as a good sign. |
| GM BRANDS BRANDS STAYINGChevroletGMCCadillacBuickBRANDS GOINGPontiac*Saturn#Saab#Hummer#Opel#Vauxhall# *= to be discontinued/# = to be sold Q&A: What now for General Motors? | GM BRANDS BRANDS STAYINGChevroletGMCCadillacBuickBRANDS GOINGPontiac*Saturn#Saab#Hummer#Opel#Vauxhall# *= to be discontinued/# = to be sold Q&A: What now for General Motors? |
| "It is the smaller, leaner, tougher, better cost-focused GM," said George Magliano, an automotive analyst with consulting firm IHS Global Insight. | "It is the smaller, leaner, tougher, better cost-focused GM," said George Magliano, an automotive analyst with consulting firm IHS Global Insight. |
| "But they still have to deal with the problems that they faced longer-term." | "But they still have to deal with the problems that they faced longer-term." |
| Analysts argue that GM will need to change what it offers consumers and produce more cutting-edge vehicles. | Analysts argue that GM will need to change what it offers consumers and produce more cutting-edge vehicles. |
| "I'm still cautiously optimistic - they still need to put a product out there that everyone is excited about purchasing," said Pete Hastings, analyst at Morgan Keegan. | "I'm still cautiously optimistic - they still need to put a product out there that everyone is excited about purchasing," said Pete Hastings, analyst at Morgan Keegan. |
| "The challenge in the future is how to approach a marketplace that has been burned by GM," he added. | "The challenge in the future is how to approach a marketplace that has been burned by GM," he added. |
| Fewer brands | |
| The firm lost its title as the world's largest vehicle-maker in January. | The firm lost its title as the world's largest vehicle-maker in January. |
| Toyota sold 8.97 million vehicles in 2008, while GM's global sales had dropped to 8.35 million vehicles. | Toyota sold 8.97 million vehicles in 2008, while GM's global sales had dropped to 8.35 million vehicles. |
| The new GM will operate with 27,000 fewer US employees and operate 13 fewer US car plants compared with last year. | The new GM will operate with 27,000 fewer US employees and operate 13 fewer US car plants compared with last year. |
| It will operate the strongest parts of the old company, with only its Chevrolet, Cadillac, Buick and GMC brands remaining. Others such as Hummer and Saab are being sold off. | It will operate the strongest parts of the old company, with only its Chevrolet, Cadillac, Buick and GMC brands remaining. Others such as Hummer and Saab are being sold off. |
| The company's logo will remain the same; blue with white GM letters underlined. | The company's logo will remain the same; blue with white GM letters underlined. |
| Edward Whitacre, GM's chairman, said the firm's new 13-member board should be in place in about three weeks. | |
| He said he didn't think his lack of knowledge about cars was a problem adding "I know a good car when I see one" during an interview with Geoff Gilbert of WWJ Newsradio Detroit. | |
| Loan repayment | Loan repayment |
| RECENT ROAD TO GM BANKRUPTCY Feb 2008: GM posts $38.7bn loss for 2007 and plans to cut 74,000 union jobsSept 2008: GM has 100th anniversaryDec 2008: US state offers $13.3bn in loans to GM and Chrysler; Canada offers $3.3bnFeb 2009:GM posts $31bn loss for 2008March 2009: The White House requests a new viability plan from GM and calls for boss Rick Wagoner to resignMay 2009: Reaches deals with US and Canadian unions. GM bondholders approve restructuringJune 2009: GM files for bankruptcyJuly 2009: GM emerges from bankruptcy GM's journey from boom to bust | RECENT ROAD TO GM BANKRUPTCY Feb 2008: GM posts $38.7bn loss for 2007 and plans to cut 74,000 union jobsSept 2008: GM has 100th anniversaryDec 2008: US state offers $13.3bn in loans to GM and Chrysler; Canada offers $3.3bnFeb 2009:GM posts $31bn loss for 2008March 2009: The White House requests a new viability plan from GM and calls for boss Rick Wagoner to resignMay 2009: Reaches deals with US and Canadian unions. GM bondholders approve restructuringJune 2009: GM files for bankruptcyJuly 2009: GM emerges from bankruptcy GM's journey from boom to bust |
| GM said it planned to repay its government loans before the current 2015 deadline. | GM said it planned to repay its government loans before the current 2015 deadline. |
| The firm is getting $60bn (£37.3bn) in financing from the US Treasury, which gives the US government a 61% share in the new GM, while the United Auto Workers union will have 17.5%. | The firm is getting $60bn (£37.3bn) in financing from the US Treasury, which gives the US government a 61% share in the new GM, while the United Auto Workers union will have 17.5%. |
| Canada's government will have a 12% share and GM bondholders will own about 10% in the new company. | Canada's government will have a 12% share and GM bondholders will own about 10% in the new company. |
| GM said it hoped to float the company on the stock exchange again "as soon as practical". | GM said it hoped to float the company on the stock exchange again "as soon as practical". |
| The US government has said it does not want to be involved in the day-to-day running of the carmaker. | The US government has said it does not want to be involved in the day-to-day running of the carmaker. |
| The company also said it was exploring a partnership with online auction site eBay to make it easier for customers to buy its cars. | The company also said it was exploring a partnership with online auction site eBay to make it easier for customers to buy its cars. |
| Rocky road ahead | Rocky road ahead |
| GM filed for bankruptcy protection on 1 June, saying it would be forced to liquidate if the plan was not approved. | GM filed for bankruptcy protection on 1 June, saying it would be forced to liquidate if the plan was not approved. |
| The plan was strongly supported by President Barack Obama and GM's 40-day bankruptcy ended two days earlier than that of its cross-town rival Chrysler. | The plan was strongly supported by President Barack Obama and GM's 40-day bankruptcy ended two days earlier than that of its cross-town rival Chrysler. |
| However, it is unlikely to be smooth sailing for the two carmakers. | However, it is unlikely to be smooth sailing for the two carmakers. |
| US car sales have been hit hard as the financial crisis has made it harder to get credit and made consumers reluctant to make big purchases. | US car sales have been hit hard as the financial crisis has made it harder to get credit and made consumers reluctant to make big purchases. |
| During the past six months, car sales in the US have fallen by more than 30%, while in Japan they have declined 20%. | During the past six months, car sales in the US have fallen by more than 30%, while in Japan they have declined 20%. |