This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8144434.stm
The article has changed 18 times. There is an RSS feed of changes available.
Version 7 | Version 8 |
---|---|
Leaner GM emerges from bankruptcy | |
(about 1 hour 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. |
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. |
NEW GM'S BRANDS ChevroletGMCCadillacBuick What the changes mean for GM | NEW GM'S BRANDS ChevroletGMCCadillacBuick What the changes mean for GM |
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. |
Longer-term problems | |
Industry analysts interpreted the short timeframe of the bankruptcy as a good sign. | |
"It is the smaller, leaner, tougher, better cost-focused GM," said George Magliano, an automotive analyst with consulting firm IHS Global Insight. | |
I'm still cautiously optimistic - they still need to put a product out there that everyone is excited about purchasing Pete Hastings, analyst at Morgan Keegan | |
"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. | |
"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 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. | |
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. |
Loan repayment | |
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. |
BRANDS TO GO Pontiac*Saturn#Saab#Hummer#Opel#Vauxhall# *= to be discontinued/# = to be sold | BRANDS TO GO Pontiac*Saturn#Saab#Hummer#Opel#Vauxhall# *= to be discontinued/# = to be sold |
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%. |