GM may still avoid bankruptcy court
A General Motors Corp. bankruptcy is more probable than not, but there’s still a chance to restructure outside of court, Chief Executive Fritz Henderson said Monday.
"It’s more probable that we would need to accomplish our goals" through a bankruptcy court, Henderson said in a conference call to update reporters on GM’s restructuring plans.
Under a deadline imposed by the Obama administration, GM has until June 1 to drastically cut costs and reach agreements with bondholders and the United Auto Workers union. Late last month, the automaker announced it would ax its Pontiac brand by the end of 2010, accelerate and expand labor cuts, deepen its dealership reduction target, move up the date it plans to end Saturn production and idle one more plant than it originally announced.
In Monday’s call, Henderson said GM would start notifying dealers later this week about plans to cut about 2,600 U.S. dealers by the end of 2010, a 42 percent reduction from the 6,246 it had last year. Henderson said GM would help dealers who were part of that cut wind down their operations. The automaker hasn’t publicly released a list of the affected dealers.
"This is not, at least in our judgment, a one-month process," he said.
Other steps remain in GM’s progress toward restructuring instant faxless payday loans. Labor concessions is one of them. The automaker is still in talks with the UAW, Henderson said, but he offered few additional details. He sidestepped a question about whether GM would seek concessions similar to what Chrysler negotiated with its UAW workers last month. "We will focus on General Motors in those discussions," Henderson said.
Any such concessions would affect about 1,800 hourly workers at GM’s Wentzville plant, where full-size vans are made.
GM’s chief executive, who has been in charge for a month and a half, said it was premature to talk about plant closures because the UAW talks were ongoing.
Henderson also outlined the automaker’s progress on selling or shedding some of its brands. Henderson said:
— GM received three offers for Hummer and is negotiating with two parties. If a deal is to happen, it will be reached by the end of this month.
— GM is looking at options for its Saturn brand.
— Production of the Pontiac brand will wind down by the end of 2010.
Filed under: news by Fred