On Friday, the new General Motors (GM) began operations with a new corporate structure, and is now primarily owned by the governments of the U.S., Canada and Ontario, along with the UAW Retiree Medical Benefits Trust. The result of an asset sale approved by the bankruptcy court on July 5, the new GM will narrow its focus to four core brands (Chevrolet, Cadillac, Buick and GMC). Also, the number of U.S. dealerships will be reduced, from around 6,000 to approximately 3,600 by the end of next year. According to the GM press release announcing these developments, however, GM will still have the largest dealer network in the U.S. As a part of its restructuring, GM plans to reduce the number of U.S. executives by 35% and overall U.S. salaried employment by 20% by the end of the year. GM says that “additional details of the new structure and leadership moves will be communicated later this month.”
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New General Motors emerges from bankruptcy
- Alston & Bird LLP
- Sarah Whitlock
- USA
- July 12 2009
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Jennifer Miller
Senior Legal Counsel, Bankwest Business
Bank of Western Australia Ltd