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DETROIT, July 10 (Reuters) - A new General Motors GMGMQ.PK
emerged from bankruptcy on Friday, 40 days after it filed for
court protection, as a leaner automaker pledging to win back
consumers and pay back taxpayers.
The new GM, created from the old GM's strongest assets
including Chevrolet and Cadillac, has a healthier balance
sheet, lower labor costs, fewer brands and a significantly
reduced break-even point.
Details of how GM's operations have changed follow.
* BALANCE SHEET
The new GM has U.S. debt of about $11 billion, which
excludes preferred stock of $9 billion.
That represents a reduction of more than $40 billion in
obligations that consist mostly of unsecured debt and a
healthcare trust for union hourly retirees, known as VEBA.
* OWNERSHIP
The old GM was a publicly traded company.
The U.S. Treasury owns 60.8 percent of the new GM, the VEBA
healthcare trust has a 17.5 percent stake, and Canada and
Ontario governments 11.7 percent. The remaining 10 percent goes
to the old GM to pay off unsecured creditors.
GM Chief Executive Fritz Henderson said on Friday the
automaker plans to return as a publicly traded company next
year.
* EMPLOYEES
U.S. employment will decline to about 64,000 at the end of
2009, from about 91,000 at the end of 2008.
* BRANDS, DEALERS, PLANTS
The new GM is built on four core brands which account for
more than 80 percent of the automaker's sales: Chevrolet,
Cadillac, GMC and Buick.
Saab, Hummer and Saturn remain in the old company and are
in the process of being sold or wind down. Pontiac also is
being wound down.
GM expects to have 3,600 dealerships by the end of 2010,
down from nearly 6,000 dealerships as of May.
It also expects to reduce the number of U.S. facilities to
34 by the end of 2010, from 47 now.
* BREAK-EVEN POINT
The new GM is expected to break even with U.S. auto
industry annual sales of 10 million vehicles, from its current
break-even point of 16 million units. U.S. auto industry sales
are running at a 9.5 million annualized rate in 2009.
(Reporting by Soyoung Kim, editing by Matthew Lewis)
