The new General Motors Company began operations today, leaving the bankrupt general Motors behind. The New GM boasts of a new corporate structure, a stronger balance sheet, and a renewed commitment to make the customer the center of everything the new GM does.

"Today marks a new beginning for General Motors, one that will allow every employee, including me, to get back to the business of designing, building and selling great cars and trucks and serving the needs of our customers," Fritz Henderson, president and CEO, said in a press release.

"We are deeply appreciative for the support we have received during this historic transformation, and we will work hard to repay this trust by building a successful new General Motors," he added.

The new General Motors was created from the old GM's strongest operations after an asset sale approved by the bankruptcy court on 5 July.

It has four core brands in the US and the largest network in the country, the release said.
 
The new GM will focus on a fresh lineup of Chevrolet, Cadillac, Buick and GMC cars, trucks and crossovers, each with leading-edge designs and technologies that matter to both consumers and the environment, the release said.

The new GM also boasts of a "competitive cost structure, a cleaner balance sheet, and a stronger liquidity position that will enable it to invest in new products, key technologies, and its future."

"One thing we have learned from the last 100 days is that GM can move quickly and decisively," said Henderson. "Today, we take the intensity, decisiveness and speed of the past several months and transfer it from the triage of the bankruptcy process to the creation and operation of a new General Motors," he added.

Henderson said the new GM is fully equipped to responding to consumer and market trends. "Our goal is to build more of the cars, trucks, and crossovers that customers want, and to get them to market faster than ever before," he said.

The new General Motors launches with a clear and simple vision - to design, build and sell the best vehicles in the world.

"A successful auto company needs to focus on both the cost and the revenue sides of the business," said Henderson. "Success on the revenue side means building the stylish, high-quality, fuel-efficient vehicles that customers want - and getting them to market fast."

Despite the recent downturn, GM continued to roll out of strong new products like the Chevy Camaro, Chevy Equinox, Cadillac SRX, and Buick LaCrosse. Later this year, GM has planned the Cadillac CTS Sport Wagon and GMC Terrain debut, followed next year by the Chevy Volt, Chevy Cruze and Cadillac CTS Coupe.

Just last month, GM announced its intention to build a new small car at a plant in Orion Township, Michigan, which will add to GM's growing portfolio of fuel-efficient cars and restore approximately 1,400 jobs.

GM also has moved aggressively to develop a full range of energy-saving technologies, including advanced internal combustion engines, biofuels, fuel cells, and hybrids.

The company is also a leader in the development of extended-range electric vehicles, with its first model, the Chevy Volt, currently undergoing road testing and scheduled to launch in 2010.

The new GM is also taking steps to make advanced battery development a core competency, and expects to make additional announcements on this matter late this summer.

As part of its reinvention, the new GM has also focused its resources on four core brands and a stronger, more effective dealer network.

General Motors' core brands - Chevrolet, Cadillac, Buick and GMC - will have a total of just 34 US nameplates by 2010. This emphasis on fewer, better entries will enable the new GM to put more resources into each nameplate, resulting in better products and stronger marketing.

The company also accelerated its dealer consolidation efforts, with the goal of reducing the number of GM dealers in the US from 6,000 this spring to approximately 3,600 by the end of next year.

General Motors Company is now primarily owned by the governments of the United States, Canada and Ontario, and by a trust fund providing medical benefits to UAW retirees.

US Treasury now owns 60.8 per cent of GM's common stock, UAW Retiree Medical Benefits Trust 17.5 per cent, Canada and Ontario governments 11.7 per cent and the old GM still owns 10 per cent in the new GM.

By the end of 2010, the new GM will operate 34 assembly, powertrain, and stamping plants in the US, down from 47 in 2008, and capacity utilisation is expected to reach 100 per cent during 2011. Overall US employment will decline from about 91,000 at the end of 2008 to about 64,000 at the end of this year, creating a company sized to respond quickly to changes in the market, while still retaining the global scope necessary to develop world-class products and technologies.

The new GM will have US debt of approximately $11 billion, which excludes preferred stock of $9 billion. Total obligations have been reduced by more than $40 billion.

The General Motors also is looking to change the culture of the company, adding an intensified focus on the customer.

Edward E. Whitacre Jr, who oversaw the creation of the new AT&T, will serve as chairman of a GM board with a number of new directors. Henderson will continue as president and chief executive officer, working closely with Whitacre. He also will take responsibility for GM's operations in North America, eliminating the GM North America president position.

Bob Lutz has agreed to join the new GM as vice chairman responsible for all creative elements of products and customer relationships. Lutz and Tom Stephens, vice chairman, product development, will work together as a team, partnering with Ed Welburn, vice president of design, to guide all creative aspects of design. GM's brands, marketing, advertising, and communications will report to Lutz for consistent messaging and results. He will report to Henderson, and be part of the newly formed executive committee.

Nick Reilly will be named executive vice president of GM International Operations (GMIO), which will be based in Shanghai.

GM is also removing layers of management - reducing the number of US executives by 35 per cent and overall US salaried employment by 20 per cent by the end of this year.