GM Ends Bankruptcy

Washington, D.C. (VOA) July 10, 2009 - The U.S. auto giant General Motors emerged from bankruptcy Friday, and GM officials announced extensive changes designed to win back consumers and restore the luster of what has long been one of the country's most prestigious corporations.

After 40 days of bankruptcy, Chief Executive Fritz Henderson told a news conference in Detroit, Michigan, that a new, leaner and more competitive General Motors is now emerging, with the help of $50 billion in U.S. government loans.

"This is an exciting day for General Motors," he said. "Today marks the beginning of a new company - our company - one that will allow every single employee, including me, to return to the business of designing, building and selling great cars and trucks and serving our customers."

GM was able to move out of bankruptcy more quickly than many analysts had predicted.

In an effort to remake the company, GM officials announced some big changes including a 35 percent cut in its executive work force and the dropping of some car and truck brands that had long been staples in automotive showrooms including Saab, Saturn, Opel, Pontiac and Hummer.

GM chief Henderson says the focus of the new General Motors will be giving consumers products that they will want to buy, including more efficient hybrid fuel vehicles, and a re-emphasis on core brands like Chevrolet and Cadillac.

"At the new GM, we need to make the customer the center of everything, and we are going to be obsessed with this, because if we don't get this right, nothing else is going to work. It's that simple," he said.

Henderson says that among the innovations GM will experiment with is a partnership with eBay, the U.S. auction and commerce Internet site, so that customers can buy their cars on-line.

Read more...