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GM has turned to the new company

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On July, 10th procedure of bankruptcy of company General Motors is finished in record term — 40 days. To end of transaction GM suppliers of accessories and some groups of private persons which because of infringement of their interests have opposed transformations of the company to the new could place. On Thursday has expired term of giving of appeals, and in same put court on affairs of bankruptcies in New York has rejected last claims of opponents of the plan of change of structure GM. The decision of judge Robert Gerber which has allowed GM to sell the profitable actives of the "new" company has automatically come into force.

The plan

On end of bankruptcy the government of the USA promises to give the companies the demand line of credit on $30 billion in addition to earlier given out credits for $15,4 billion. Under the plan, the government of the USA will receive 60 % in updated GM, trade union of workers of motor industry — 17,5% and the government of Canada and the Canadian province of Ontario — 11,7%.

GM plans to dismiss 20 thousand persons, to close 14 factories in the USA, thereby having reduced their number to 33 pieces, and also to get rid of the least profitable marks of cars. Besides, Fritz Henderson has informed today on dismissal 4000 more "white collars" the companies, including 450 of management structure. For the present in the USA on GM 88 000 persons, and worldwide — 232 000 persons work.

It is expected also, that Henderson will tell today about plans of change of administrative structure which should become more "mobile" in acceptance of the important decisions and help concern to become again profitable. Only in the first quarter of this year losses GM have grown almost twice to $6 billion in comparison by losses in 3,3 billion in the first quarter of last year. Thus, incomes for the same period were cut also almost by half: about $42,4 billion to $22,4 billion. For last four years the company has lost more than $80 billion. GM assures, that in new quality can start to earn money even if the market of the USA remains in depression, and volume — at level of 10-10,5 million sold cars.

New image

However, only serious reduction of expenses for GM will be insufficiently, experts Reuters consider. It is necessary, that the company has started to make the cars, which people will want to buy. GM last year has already lost a rank of the world's largest motor-car manufacturer which kept within 77 years. A superiority palm tree has intercepted Japanese Toyota which has sold all over the world almost 9 million cars against 8,4 million the cars sold by corporation GM.

Experts Reuters consider, that future success GM in many respects depends on, whether can convince concern consumers, that new GM can make cars equal or even better the Japanese. To show the beginning of a new epoch for GM, the company has replaced corporate colours: with dark blue on the green. If board GM agrees with such the offer, it will be so radical change of symbolics of the company first for the last half a century.

By the plan, GM should not only create more economic cars, but also reduce purely automobile marks, models and dealers. New GM will reduce the debts and social obligations to $48 billion, will reduce a dealer network by 40 %, and also to get rid of such American brands, as Saab, Saturn and Hummer.

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