This Week’s Loser: General Motors
Can’t GM keep an exec? The General has lost how many people in the past three weeks? CEO Fritz Henderson bailed right out of nowhere. Then came word Chevy head Brent Dewar flew the coop. Right after the Dewar break came the shock that the Buick-GMC chief, Michael Richards, jumped ship after nine days on the job.
We contend Buick-GMC is a doomed asset, but Richards’s departure is shocking even for us cynics. GM isn’t finding any love in Europe either, with Swede authorities demanding GM sell off Saab before the new year. German treasury and trade officials–as well as the labor force–are equally hostile to the General maintaining ownership of Opel. No rest at home, no rest abroad.
Shame no one wants to live in Detroit.
GM Takes Another Blow in Earnings; Sales Bonanza to be Announced
General Motors reports it lost approximately $1,500,000,000 in the third fiscal quarter of 2009.
CEO Fritz Henderson remained positive with the announcement, saying “today’s results provide evidence of the solid foundation we’re building for the new GM.” Total revenue was up from the preceding quarter and Henderson also announced the company was ready to begin paying back taxpayer loans.
The dour financial news was met by word GM’s remaining US properties would be having a cross-brand sales event during the week. How shoppers will respond to the bleak forecast remains to be seen.
GM Out of Bankruptcy, Lutz Stays, and a New Logo?
GM will announce later today that it’s emerged from Chapter 11 bankruptcy after just forty days. That’s a big feat and important step in a full recovery. There will still be further cuts from company: four thousand employees will be dropped and sixteen plants will be idled or closed. GM will run on just four brands here in North America: Chevrolet, GMC, Buick, and Cadillac. The company will also have to contend with poor car sales across the board and rising unemployment throughout the country.
In other news, Vice-Chair Bob Lutz will hold off on retirement and remain with the company for an unclear amount of time. This coincides with a report that GM may change its logo to something greener.
I’m not sure how valid that logo story is, but it’s good to hear Lutz is staying on board for little longer.
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