On July 11, 2009 GM emerged from bankruptcy as a new company called General Motors Company. The old GM sold its best assets to the new company which will be primarily owned by the American and Canadian governments which collectively will hold 72.5%. The Voluntary Employee Beneficiary Association, a union health care trust, will hold 17.5% with the remaining 10% held by the old GM.
The old GM will remain in bankruptcy and its factories, brands, and other operations will eventually be liquidated. The old GM will now be called Motors Liquidation Company. Shares in the old GM will likely be worthless and it is contemplated that the Treasury Department will eventually make a public offering for the new GM stock sometime in 2010.
The new GM will retain the GMC, Chevrolet, Buick, and Cadillac brands. It will no longer offer the Saturn, Pontiac, Hummer and Saab brands. Nevertheless, GM’s remaining dealers will continue to honor warranties for those vehicles. The new GM is planning on closing approximately 1,100 over 6,000 dealerships and eventually hopes to pare down to 3,600 dealers by the close of 2010. Additionally, GM’s present 47 plants, manufacturing engines, transmissions, and stamping and assembly plants will be reduced to only 34. And the number of employees will likewise be reduced from the present 91,000 at the end of 2008 to only 64,000 by the end of 2009. GM is also expected to reduce American executives by 35%, and overall administrative white-collar employees by 20% by the end of this year.