The new GM will be majority owned by the US government with a 60.8 percent stake. The Canadian government will also own an 11.7 percent share of the new company. The US Treasury will have committed some 50 billion dollars to GM by year's end. The remaining share of the now private company will be held by the UAW (17.5 percent) and bondholders who previously held GM debt will get 10 percent of the new GM.
Central to the new GM manifesto is an openness to customer input, a new buying structure that allows eBay-like purchasing, including 'but it now' pricing, and a focus on continuing to turn out new products that are their own best argument for buying GM.
"Customers will be able to bid on actual vehicles just like they do in an eBay auction, including the option of choosing a predetermined 'buy it now' price," Henderson said of the as-yet-unannounced plan to partner with eBay for sales.
GM's transformation into its newer, lighter self isn't yet complete, however. Downsizing will continue through 2011 at least, with a reduction of 13 plants to just 34 in operation by the end of 2010, and a cut in U.S. jobs from the 91,000 GM had at the end of 2008 to around 64,000 by the end of 2009.
Since the US government now owns GM, Congress can act to exert control, and a majority of House members have voted for a bill that blocks the closing of GM and Chrysler dealerships in order to help save jobs. But GM needs to close the 1,300 dealerships it had planned to in order to trim its operations and become a viable company once again.
Opening more communications channels, including direct employee interaction with customers, is also a core element of GM's plan to help bridge the 'perception gap' between its products and what people think when they hear the GM name. Fritz Henderson will lead the charge, launching his own blog and ramping up use of social media tools like Twitter.
"In August, we'll begin regular visits with customers, dealers, suppliers, employees and others - in the U.S. and abroad - who impact our relationships with customers. We'll be listening to their ideas, and acting on the ones that will improve our ability to serve our customers better," said Henderson. "And of course, other executives and I will continue to reach out to customers through our ongoing web and Twitter chats."
The President of GM North America, Troy Clarke, said, "This is a new General Motors, which is going to be focused on fewer brands, fewer entries...We'll ask for people to please give us that one look. Give us that one consideration and we won't disappoint you."
It's still long way to go for the new GM to really recover from bankruptcy and rebuilt reputation. What's your point?
