• General Motors (GM) is a multinational automotive corporation based in the United States. On June 1, 2009, GM filed for bankruptcy under Chapter 11.

  On July 10, 2009 GM and the government signed the official paperwork to end the 40 days of Chapter 11 bankruptcy protection.http://www.bizjournals.com/jacksonville/stories/2009/07/06/daily43.html

• Fast Facts

  1. Stock symbol: GM (NYSE)
  2. Annual revenue (2007): $181 billionYahoo! Finance: GM Income Statement
  3. Founder: William C. Durant
  4. Established: 1908
  5. Industry: Automotive manufacturing and distribution
  6. Phone: 313-556-5000
  7. Fax: 313-556-5108
  8. HQ: Detroit, Michigan
  9. CEO Fritz Henderson
  10. CEO Rick Wagoner forced into resignation on March 29, 2009
  11. CFO: Ray Young
  12. Staff (as of 2007): 284,000
  13. Brands once included Chevrolet, Cadillac, Hummer, Saturn and Saab
  14. Was one of the largest automakers worldwide and operated in 33 countriesGM.com: About GM
  15. Filed for bankruptcy in New York on June 1, 2009CNN: General Motors bankruptcy... (June 1, 2009)
  16. Sold Hummer to China on June 2, 2009 http://www.marketwatch.com/story/gm-sell...

• Hummer China

  On June 2, 2009, GM sold its Hummer brand to China's Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. The SUV's sales had severely declined due to environmental concerns and high gas prices.Market Watch: GM sells Hummer to Chinese machine maker--report

  Sichuan Tengzhong Heavy Industrial Machinery, general manager, Yang Yi, suggested that the company has no plans to export Hummer's equipment and technology out of the US and the truck brand offerings will remain a North American product.

• Bankruptcy

  In May 2009, GM confirmed plans to sell or close four of their brands; Saturn, Hummer, Saab and Pontiac.CNN: GM Notifies 1,100 Dealers They're Out (May 15, 2009) General Motors also notified 1,100 of its 6,000 dealerships that their contracts with GM will be terminated. The notifications marks the first step to cut 40% of GM's retail network, reducing U.S. dealers from 6,200 to 3,600 by the end of 2010.Bloomberg: Shutdowns for 1,100 U.S. Dealers (May 15, 2009)

  On May 27, 2009, the GM corporation offered bondholders company stock in exchange for bond debt. The offer (10% of company stock for $24 billion of unsecured debt) comes as executives at the embattle car-giant tried to make restructures ordered by the federal government. However, bondholders rejected the offer, which could lead the company into bankruptcy.Forbes: GM says bondholder offer fails; bankruptcy likely (May 27, 2009)

  April 13, 2009: The U.S. Treasury Department has directed GM to file for bankruptcy by June 1, 2009. The bankruptcy filing will commence if the company is unable to reach an agreement with the bondholders to exchange $28 million of debt into equity as well as with the United Automobile Workers.The New York Times: 'Surgical' Bankruptcy Possible for G.M. (April 13, 2009)

  On June 1, 2009, GM filed for bankruptcy under Chapter 11. The move will divide ownership of the company into many parts, with the U.S. government taking the largest share, followed by the United Auto Workers and the Canadian government. The bankruptcy plan will also include the shutdown of several plants, layoff of over 20,000 workers, cuts in retirees' health benefits and the loss of the companies place on the Dow Jones Industrial Average.CNN: General Motors bankruptcy... (June 1, 2009)

• Hope Fades

  On May 11, 2009, GM CEO Fritz Henderson announced that he was hoping to avoid Chapter 11 Bankruptcy, but he was unsure if the company will be able to complete the restructuring before the government imposed deadline. GM stock shares fell to $1.45, after the announcement.FOX News: GM CEO Signals Bankruptcy(May 11, 2009)

• 1st Q 2009 Report

  General Motors released its first quarter earnings report on May 7, 2009. According to the report, GM lost $6 billion in its first quarter compared to 2008's first quarter and has experienced a 21 percent drop in sales.Fox Business: GM Loses $6 Billion in First Quarter (May 7, 2009)

• Help From Fiat?

  On May 3, 2009, Italian automaker FIAT announced that it was in talks to purchase General Motors' European operations, which includes Vauxhall Motors (England), Saab (Sweden) and Opel (Germany).Washington Post: Fiat eyes new company with GM Europe, Chrysler (May 3, 2009)

• Reorganization Plan

  General Motors announced its "faster, deeper" reorganization plan on April 27, 2009. General Motors announced that they are discontinuing the Pontiac brand. In addition, GM will cut 23,000 jobs by 2011 and will cut 40% of their dealer network in an effort to avoid bankruptcy.CNNMoney: GM goes for broke (April 27, 2009)

• Idling Factories

  According to the Detroit Free Press, General Motors will close most of its factories for up to nine weeks beginning in mid-May 2009. Over the past year, General Motors has increasingly been forced to rely on extended and rolling shutdowns at facilities to curb expenses and reduce inventory.Detroit Free Press: GM shutdown could begin next month (April 23, 2009)

• Debt Payment

  General Motors Chief Financial Officer Ray Young told The Wall Street Journal on April 22, 2009 that GM plans to miss their $1 billion debt payment, due on June 1. GM, who is attempting to reduce their debt through government-supervised restructuring, hopes to have their debt restructured by June 1, or they will be forced to declare bankruptcy. Either way, the ailing automotive manufacturer has said they have no intention of making the $1 billion debt payment.Reuters: GM says likely to miss debt payment deadline (April 22, 2009)

• Job Cuts

  GM announced on April 20, 2009 that 1,600 white-collar workers will be cut in the next few days. In March 2009, GM began cutting over 3,000 salaried jobs which was part of the 47,000 cuts that would happen before the end of 2009. Detroit claims they will be hit the hardest and will be close to the goal of 3,400 cuts after this last cut of 1,600.DetroitNews: GM: 1,600 will lose jobs in next few days (April 20, 2009)

• Rick Wagoner Resignation

  GM released a statement on March 29, 2009, announcing that CEO Rick Wagoner was resigning and Fritz Henderson would take his place. The resignation was at the request of the Obama administration.Freep.com: Statements from Wagoner, GM Board (March 29, 2009) The following day, President Obama said the government has "no intention" of running GM but required a "better business plan" before lending additional funds.FOXNews.com: Obama Says He Has 'No Intention' of Running General Motors (March 30, 2009)

• Financial Troubles

  In 2008, sales of General Motors' vehicles fell nearly 11%. According to figures released by GM on January 21, 2009, global sales in 2008 dropped to 8.36 million vehicles. Toyota reported 2008 sales of 8.97 million—giving the Japanese automaker the title of world's largest automaker for the first time. GM held the title for nearly 80 years.CNNMoney.com: GM loses sales title to Toyota (January 21, 2009)

  On December 24, 2008, the Federal Reserve approved the request of the financial arm of GM, GMAC, to become a bank holding company. The move would allow General Motors to use the funds available in the TARP (Troubled Asset Relief Program), the $700 billion fund that has been set aside for the purpose of bailing out the financial markets.Detroit Free Press: Fed's bank ruling buoys GMAC, GM (December 25, 2008)

  The company received a federal loan of $13.4 billion from the government in December 2008.

  On February 26, 2009, GM posted a $9.6 billion net loss for the fourth quarter of 2008, bringing the total loss for 2008 to $30.9 billion.Bloomberg.com: GM Posts $9.6 Billion Loss as Wagoner Seeks New Aid (February 26, 2009)

• Retirement Buyout Program

  On February 3, 2009, GM released information from its viability report, as required by congress in exchange for TARP funds. Part of their plan to reduce expenses focused on offering early retirement to workers who were qualified. The retirement buyout program would offer up to $50,000 in cash and $25,000 in a car voucher to participants.WashingtonPost.com: GM, Chrysler Look to Cut Workforce (February 3, 2009)

  On February 10, 2009, GM announced plans to cut 10,000 salaried jobs worldwide as part of a massive restructuring plan in exchange for for bailout funds.CNNMoney.com: GM cutting 10,000 jobs (February 10, 2009) Two days later, GM officials confirmed that the company would offer all of its 62,000 hourly workers voluntary buyouts or early retirement package.The Montreal Gazette: GM offers buyouts to all 62,000 hourly workers

• Key Dates

  • September 16, 1908: Founded by William C. Durant in Flint, Michigan, as a holding company for Buick
  • 1909: Durant acquires numerous auto companies, including Cadillac and Oldsmobile
  • 1910: Durant loses control of company due to large debts
  • 1961: Does away with clear performance distinctions between its different brand names
  • 2001: Starts the Keep America Rolling campaign in the wake of the 9/11 terrorist attacks, kickstarting other manufacturers to boost sales
  • December 31, 2007: Operates over 8,000 dealerships in North America, and over 14,000 worldwide
  • December 12, 2008: GM announced that it would cut North American production by 250,000 new units, a 60% drop from the previous yearReuters: GM slashes production in North America (December 12, 2008)
  • December 18, 2008: GM and Chrysler receives $13.4 billion in federal loans from TARP
  • March 29, 2009: CEO Rick Wagoner forced to resign
  • June 1, 2009: GM files for Chapter 11 bankruptcy
  • June 2, 2009: Hummer sold to China's Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd

• Related Mahalo Pages

  GM Dealership Closing List | Cadillac | Chevrolet | GMC | Pontiac | Saab | Saturn (car) | Ford | Cars | Hybrid Cars | Luxury Cars | Buick | Hummer | Rick Wagoner | Oldsmobile | GM Ford Losses | 2011 Chevrolet Volt | Tiger Woods | Car Czar | TARP | William Morris Agency | Automaker Bailout | Segway PUMA | BYD Electric Cars | FIAT Enivironmentally Friendly | New Camaro | Penske Saturn | Bob Lutz | Silverado | Sichuan Tengzhong Heavy Industrial Machinery Company | Henderson

• GM Board Members

  • Edward Whiteacre (Chair)
  • Kent Kresa
  • Philip Laskawy
  • Kathryn Marinello
  • Erroll Davis Jr.
  • E. Neville Isell
  • Frintz Henderson (CEO)

• OnStar to go to China

  5.6 million people in North America have subscribed to OnStar. Now, OnStar seeks to move to China. China has sold 12.6 million cars in 2009 and GM is one of China's biggest brands. OnStar will appear in Cadillacs, first, then Buicks, and then Chevorolet models.

• Hummer Sale

  Sichuan Tengzhong Heavy Industrial Machinery Co bought Hummer for $150 million. GM will continue to manufacturing the vehicles until 2012. Tengzhong hopes to create more fuel efficient Hummer and is working on a diesel powered vehicle to be sold outside of North America. The deal is awaiting the Chinese Government blessing.

• Bob Lutz Blog

  Bob Lutz has been writing on the GM FastLane Blog since 2004. Lutz uses the blog to communicate and engage people interactively through emails. Social media marketing is becoming a useful tool allowing Lutz too have "his own voice". Critics are more careful about what they write because Lutz can rebuttal them immediately on his blog.

• GM Commerical Trucks and Fleet

  1. Sales of GM commercial Truck and Fleet accounted for 1.3 to 1.5 billion vehicles during the last five years.

  2. Sales range between 260.000 to 300.000 vehicles a year.

  3. But the GM truck sales during the second quarter of 2009, saw a 31% drop in the month of June.

• Bob Lutz - MBA - Marketing Experience

  1. Masters in Business Administration, MBA in marketing from University of California. 2. Thesis was on how people respond to visual stimuli and how it influences their actions. 3. Head of Sales and Marketing at BMW

• Bob Lutz takes charge of Marketing

  1. Mark LaNeve, Vice President of North American Sale departured GM. 2. Global sales are performing ahead of GM's expectations, increasing form 11.6% to 11.9% of market share, down from 12.4% in 2008. 3. In July 2009, Henderson took sales and marketing from LaNeve and gave it too Bob Lutz. Lutz has been given the marketing job and the marketing dollars. Lutz will create the new image for GM and build the future image.

• Millions of sq ft of unwant factory space

  1. Motors Liquidation is working to liquidate unwanted GM assets.

  2. Motors Liquidation is trying to sale the Pontiac assembly plant in Michigan. The assembly plant is 3.4 million sq ft, very big for modern car makers. Part of the plant may be used by Tesla Motors to make cars.

  3. China's Sichuan Tengzhong Heavy Industrial Machinery Co is looking to expand its Hummer production and looking at factory space.

  4. Shreveport Assembly - 4.5 mil sq ft, Indianapolis - 2.1 mil sq ft, Willow Run - 4 mil sq ft, Strasbourg - 3 mil sq ft. Unwanted 200 properties and 5,000 robots.

• GM will end eBay Experiment

  GM is ending it seven week experiment to sale new cars on eBay. The campaign didn’t help to sale more new cars. The tradition of haggling in person for price made an odd fit for the internet. GM stated they did not think it was the right time to sale new cars through eBay. However, over 1.5 million customers visited the eBay GM section and generated 15,000 customer leads.

• Penske talks break down - Saturn sold

  Roger Penske was planning to buy General Motor's Saturn division.

  The Penske Automotive operates the nation's No. 2 auto dealer chain.

  GM announced it will shutdown the Saturn brand. 350 dealers will be phased out.

  Blame GM's board for not approving Penske's plan to manufacturer Saturn with another manufacturer.

  
  

• GM Q&A

  Which GM vehicles will be considered 'Environmentally friendly'?

  How much money is the New GM's pension fund, underfunded?

  GM Inside News

  What percentage of the New GM company does the government own?

  Does China continue to be a bright spot for General Motors?

  What are GM key services and product offerings?

  What can GM learn from IBM

  How will Bob Lutz increase Cadillac's marketing visibility and position?

  What is the Cadillac CTS-V challenge?

  Find a stock production sedan that can outperform the GM CTS-V on the track?

  GM’s Bob Lutz Takes Jalopnik to School

• GM projecting profits in 2010/11

  GM CEO Fritz Henderson expects profit in North America in 2010/11 through: lower-cost workers, reduced health care costs and production capacity reductions.

  The removal of one-time charges and write-downs from GMs books will help launch GM into profitability. GM is expecting loses to shrink.

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