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Motors Liquidation Company
GMC

New General Motors Company

On Friday, on July, 10th, procedure of bankruptcy of concern General Motors has come to the end. The Company management and administration of the US president of Barack Obama managed to "turn" this process rapidly — legal investigation GM lasted only 40 days while Chrysler — one more autocompany, not managed to go through present crisis, 42 days for this purpose were required.

Thus, during the largest for all history of the USA of bankruptcy the old and slow giant who with 1931 till 2007 was the largest motor-car manufacturer in the world, has given way new, "mobile and flexible" General Motors Company. At least, so represents results of proceeding the official press release published on a site old General Motors. The companies which already actually does not exist.

But at a management "new GM", and also at representatives of administration of the US president of Barack Obama who supervised over autoconcern re-structuring, yet it is a lot of occasions to pleasure. To survive, the company had to leave afloat only four marks from eight — Chevrolet, Cadillac, Buick and GMC. The others will be sold or liquidated, in due course. And such measures, in turn, demand to reduce number of North American factories GM with 47 to 34 pieces and to close 40 percent of the dealer centres in territory of the USA.

Naturally, at such serious curtailment of production has not managed and without "human losses". So, till the end of 2009 of work third of personnel serving enterprises GM in the USA will lose almost — from 91 thousand workers will be dismissed 27 thousand persons. And it only those who worked directly on General Motors. And if to consider personnel reductions at the enterprises of accessory manufacturers the figure of the future dismissals in automobile branch of the USA can grow several times.

Chevrolet Camaro

Besides, General Motors Company it is necessary to go and on scale reduction of a management. From 1300 managers and top-managers in the near future will write the letter of resignation or leaving on pension more than 400 persons. Till this moment to such radical measures in relation to the supervising personnel in GM did not resort yet.

The chief executive of company Fritz Henderson appointed to this post shortly before bankruptcy, will keep the place and in the new company. However now Fritz Henderson will supervise not private, and is faster the state corporation — the share of Exchequer of the USA in the new company makes 60 percent. The administration of the president has actually nationalised GM when it became clear, that the company independently solve the problems cannot.

In exchange the state "has forgiven" 10,6 billion dollars of debts from given out in the beginning of year as grants of 19,4 billion dollars, and has gratuitously given 30,1 billion dollars more for financing of procedure of bankruptcy and renewal of work after end of all formalities.

Besides, GM it was necessary to pay off with "nature", that is the actives, and with other large creditors. Almost 18 percent General Motors Company were received by the trade-union fund guaranteeing social security to workers and pensioners GM before which at the company to bankruptcy the debts in 20 billion dollars have accumulated.

Buick LaCrosse

About 12 percent of actives has got to Canadians who for the last half a year have rendered to autoconcern the financial help at a rate of 9,5 billion dollars.

The remained 10 percent of actives remain on hand "old GM" which, by the way, so any more is not called. New name General Motors now — Motors Liquidation Company, and the new company, during re-structuring, managed by right of succession the most part of debts, including 16 factories stopped to bankruptcy.

Motors Liquidation Company: Optimization of the Sales

Naturally, Motors Liquidation Company long will not exist. For liquidation it is allocated 1,75 billion dollars and in some years the structure will disappear — after will pay off on debts. And here General Motors Company it is necessary to come back to a world car market and to work in conditions which have put on a survival side all North American car industry — because of the growing prices for oil and financial crisis for today of sale of the American manufacturers in the house market have fallen to indicators of the beginning of 80th years of the last century.

Despite forthcoming difficulties, in General Motors Corporation in the future look with optimism. At least, in words. So, the 77-year-old ex-head of department of design GM, come back to the company right after end of procedure of bankruptcy to the place of the vice-president "new GM", considers, that the new proprietor, in the near future, has every chance to become the leader of the automobile market not only in America, but also all over the world:

"Now the main reason for purchase of cars GM consists not that they are made in America, at factories GM, or that we have finished bankruptcy procedure. The main thing - for last five years we have completely updated our lineup, and I can tell, that now we make probably best cars and pickups for all history General Motors".

GMC Terrain

However many North American experts do not believe, that existing lineup GM is competitive and can bring in the income. "Bankruptcy has not changed cars which are sold by dealers General Motors, and after all at the expense of them the company earns money", — the president of consulting firm Maryann Keller and Associates Merian Keller has declared in interview to agency Bloomberg.

However, Keller was mistaken in the formulation — does not earn, and loses. After all only for last five years - those about which the ex-head of department of design GM spoke, the North American motorcar giant has lost about 88 billion dollars.

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Motors Liquidation Company + Obama