General Motors stronger after bankruptcy says chairman

Southeast Asia News.Net
Saturday 14th November, 2009

General Motors, which was bankrupt a few months ago, is getting back into fighting shape says it new chairman.

Ed Whitacre was appointed to head the ailing automaker's board in April this year. He was formerly the chairman and CEO of AT&T, positions held for 17 of his 44 year tenure at the company.

After just six months in the chair at General Motorsm, Whitacre is confident about GM's future.

"This company has made remarkable strides since emerging from bankruptcy," he said in a speech delivered this week in Texas. "I can’t say for certain when we will achieve the goal of returning to the top of the industry, but I can say that we are much better positioned for success than I thought possible in July."

"Just consider these accomplishments so far," said Whitacre. "We have taken substantial steps toward getting this company back into fighting shape: slimmer, more efficient, more agile and more responsive —which sounds like a good description of a car you’d like to buy, doesn’t it?"

"We have revamped the board of directors, bringing in new people and fresh perspectives," the General Motors chairman said. "We have reduced executive level employees by one-third and restructured management so we can make faster, and I hope, better, decisions."

"We are cutting our brands in half in order to focus maximum energy and resources on the Buick, Cadillac, Chevrolet and GMC brands," said Whitacre in his speech at Texas Lutheran Univeristy. "As a result, we will optimize our dealership footprint down to 4,000 next year, from a high of 6,300 in 2008."

"And we have improved our cost structure and cleaned up our balance sheet," said the GM chief. "Our debt burden has been lowered, and our liquidity is much improved."

"So, we are getting into fighting shape. We are not there yet, but we are definitely on our way.
This is a critical first step back to sustained growth. But to be honest, these structural improvements are not why I’m optimistic about GM’s future," Whitacre said in his speech.

"I’m optimistic for reasons that are more basic to what it takes to win. That starts with the quality of the vehicles we are producing and ends with the commitment of our people to succeed," he said.

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