Here is a copy of the "GM Retiree eNews" I received earlier today. Scroll down to the very last Q & A for more information about their pilot/test program with Ebay.
GM Retiree eNews
July 10, 2008
What’s Happening Now
The New General Motors Company Launches Today
GM President and CEO Fritz Henderson told employees that today [[July 10) marks “a new beginning” for General Motors that will focus on customers, car and culture.
Created from the old GM’s strongest operations in an asset sale approved by the bankruptcy court on July 5, the new GM will “have a fresh start with a new corporate structure, a stronger balance sheet, and a renewed commitment to make the customer the center of everything we do at GM,” he said.
Henderson made several announcements related to flattening the organization and speeding decision making:
- The Automotive Strategy Board and Automotive Product boards will be replaced by a smaller Executive Committee that will meet more frequently to focus on business results and products, brands and customers.
- The matrix structure is being eliminated to simplify the organization and establish clear accountability for performance.
- The GM North America President position and the GM North American Strategy Board will be eliminated. Global functional leaders will have responsibility for running their part of the business in North America.
- The regional president positions and the regional strategy boards are being eliminated, removing a layer of management.
- Edward E. Whitacre, Jr. will serve as chairman of the GM board with a number of new directors. Henderson will continue as president and chief executive officer and will also take responsibility for GM’s operations in North America.
- Nick Reilly is named executive vice president of GM International Operations [[GMIO). GMIO will be headquartered in Shanghai, China.
- Bob Lutz has agreed not to retire, and instead will join the new GM as vice chairman responsible for all creative elements of products and customer relationships. Lutz and Tom Stephens, vice chairman, product development, will work together as a team, partnering with Ed Welburn, vice president of design, to guide all creative aspects of design. GM’s brands, marketing, advertising, and communications will report to Lutz for consistent messaging and results.
Additional details of the new structure and leadership moves will be communicated later this month, said Henderson. “These and other actions will simplify our organizational structure and reduce the level of bureaucracy that, in the past, has prevented GM from moving faster.”
Henderson concluded by thanking employees for their commitment: “We recognize that we’ve been given a rare second chance at GM, and we are very grateful for that,” he said. “We are deeply appreciative for the support we have received during this historic transformation, and we will work hard to repay this trust by building a successful new General Motors.”
Answer Me Now
Q.
What is the official name of General Motors, since it is no longer General Motors Corporation?
A.
The sale that was approved on Sunday night means that most of General Motors Corporation’s assets will be sold to NGMCO, Inc., which is an entity funded by the U.S. Department of the Treasury. Once the sale closes, NGMCO, Inc. will change its name to General Motors Company and will continue to operate using GM’s historic corporate and sub brands. After the sale closes, the remaining assets under the current General Motors Corporation will change its name to Motors Liquidation Company.
General Motors Corporation will become General Motors Company, marking an new chapter in the company’s history.
Q.
Who owns General Motors Company?
A.
The General Motors Company’s common stock will initially 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
- Motors Liquidation Company: 10 percent
Q.
What facilities were not acquired by General Motors Company?
A.
GMVM - Wilmington Assembly
Stamping - Indianapolis
GMPT - Flint North
GMPT - Livonia
GMVM - Pontiac Assembly
Stamping - Pontiac North Campus 1
Stamping - Grand Rapids
GMPT - Willow Run
GMPT - Massena
Stamping - Mansfield
GMVM - Moraine Assembly2
GMPT - Parma Complex3
Stamping - Pittsburgh
GMPT - Fredericksburg
GMVM - Shreveport Assembly
Stamping- Shreveport
Q.
Are we changing our logo?
A.
Currently, we have no plans to change our logo and talking about the pros and cons of a logo change hasn’t been the top priority with all that is happening in our company right now. At some point in time, it might be appropriate to look at how we might refresh or enhance our logo. Cost would certainly be a component of that discussion.
Q.
How will the U.S. Government be repaid and by when?
A.
Under the terms of the financing with the U.S. Treasury and Canadian Governments, GM is required to repay the $6.7B in debt it owes the U.S. Government and $1.3B in debt it owes the Canadian Governments by 2015, but our goal is to repay them much sooner. The U.S. and Canadian Governments are likely to also recoup a portion of their investment upon monetization of their equity ownership positions.
Q.
What is the auction testing that is going on in California that was discussed by Fritz today?
A.
This is a pilot/test program that builds on the successful relationship our dealers have had with ebay promoting GM Certified Used vehicles. It is an innovative partnership between ebay, GM and its dealers to offer consumers a new way to shop and purchase vehicles. GM will not sell directly to customers. All purchases will still be conducted through our existing dealer network. This test will be launched in California only and we will evaluate the effectiveness and consumer acceptance of the program before looking at further opportunities.
