- Title: USA: A second life for GM as the company emerges from bankruptcy
- Date: 11th July 2009
- Summary: NEW YORK CITY, NEW YORK, UNITED STATES (JULY 10, 2009) (REUTERS) (SOUNDBITE) BILL HOLSTEIN, AUTHOR, "WHY GM MATTERS" (ENGLISH) SAYING: "If the American people themselves start buying cars from General Motors then it's a happy ending, but if the American people say: we don't believe in the new GM; we don't want to reward them for what they've gone through - then all bets
- Embargoed: 26th July 2009 13:00
- Keywords:
- Location: Usa
- Country: USA
- Topics: Industry
- Reuters ID: LVA7SLGNXPDAPCJ2009O2BEYT7E8
- Story Text: Fritz Henderson, the head of the new General Motors, wasted no time laying out his strategy on Friday (July 10) for a revival after the ailing carmaker emerged from bankruptcy.
It took only 40 days - under the watchful eye of the White House - but it comes after years of losses and tens of billions in bailouts from the US taxpayer.
Henderson said the new GM - shed of troubled assets - will have fewer brands, fewer dealers, and a focus on three things - customers, cars and culture.
"First customers and I place them first because they need to simply be our top priority, our only priority in many ways, at the new GM. We need to make the customer the center of everything. And we are going to be obsessed with this because if we don't get this right nothing else is going to work."
But getting cars out of the showroom in the middle of a deep recession will be no easy feat.. Rising unemployment contributed to a 36 percent drop in GM sales last month - part of an industrywide slump .
GM says it will focus on greener technology and it has wiped away a whole layer of management in a bid to better respond to changing tastes.
But one key figure is staying, Bob Lutz, long seen as the driving force behind GM's past product success.
Bill Holstein, author of "Why GM Matters" was a skeptic but now says he's a bit more optimistic.
"The pain could be over for General Motors, the people who survive, that now it can go about winning market share, making money, driving a stock price higher, as opposed to years and years of losing and being on the receiving end of competitive pressure from Toyota and others. This could be a very defining moment."
But there still are a number of potential potholes. Analysts warn there could be too-much interference from the government's 60 percent stake.
And while GM is trying to re-brand itself - it still has not unveiled a blockbuster hit - and analysts say that will determine whether the new GM shifts into high gear. - Copyright Holder: REUTERS
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