New GM on its Way
NEW YORK - The "New GM," to be headquartered in Detroit and led by Fritz Henderson as president and CEO and Edward Whitacre, Jr. as chairman of the board of directors, is making its way to fruition with the recently approved sale of substantially all of General Motors Corporation's assets to NGMCO, Inc., an entity funded by the U.S. Department of the Treasury.
"This has been an especially challenging period, and we've had to make very difficult decisions to address some of the issues that have plagued our business for decades. Now it's our responsibility to fix this business and place the company on a clear path to success without delay," said Henderson in a July 6 statement released by GM. Henderson replaced former CEO Rick Wagoner in March.
Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York approved the sale July 5 with a four-day stay before closing can occur.
Based on this timeframe, the sale is expected to close by July 9.
Both NGMCO, Inc. and the current GM will change their names upon the closing of the sale. NGMCO will change its name to General Motors Company and continue to operate under GM's historic corporate and sub brands, while the current GM will be called Motors Liquidation Company.
GM subsidiaries outside the United States will be acquired by the new company and are expected to continue to operate without interruption. In addition, current GM employees will be offered positions by the new company.
According to the automaker, the new GM's common stock will be owned by:
- U.S. Department of the Treasury: 60.8 percent.
- UAW Retiree Medical Benefits Trust: 17.5 percent.
- Canada and Ontario governments: 11.7 percent.
- "Old" GM: 10 percent.
In a statement released after the company's June 1 bankruptcy filing, GM General Manager of Fleet and Commercial Operations Jim Campbell assured fleet and commercial customers General Motors would stay strongly committed to them.
Additional up-to-date information, answers to Frequently Asked Questions, and other communication on GM's future can be found at www.gmfleet.com/newgm.