GM Emerges from Bankruptcy, HUMMER Assets Held by New GM

Fri, Jul 10, 2009

Hummer News

Motors Liquidation LogoGeneral Motors emerged from bankruptcy Friday morning, namely by separating itself into two companies. The ‘new GM’ is currently being called Vehicle Acquisition Company, but will later turn into General Motors Company and include four core brands: Cadillac, Buick, Chevy, and GMC. In addition to the core brands, the new GM will also hold the assets to HUMMER, Saab, and Saturn until their fate is determined. The old GM is dubbed Motors Liquidation Company, and still holds much of the debt and some of the assets GM didn’t want as part of a new company.

As far as the consumer is concerned, this transition is little more than a name change, and should have no effect on the sale of HUMMER to Tengzhong.

The Government will have a controlling 61% stake in the new GM, with the UAW, Canadian Government, and bond holders of the old GM (now Motors Liquidation) claiming the rest.

GM also announced some management restructuring. Bob Lutz will not retire as planned, and will stay on as “vice chairman responsible for all creative elements of products and customer relationships.” Mark LaNeve, who was previously in charge of sales, service, and marketing will now concentrate solely on sales and report directly to GM CEO Fritz Henderson. GM also announced the discontinuation of the North American planning board to help unify its global initiatives.

While all this is happening stateside, it is presumed that discussions are ongoing between Tengzhong and the Chinese government regarding their acquisition of the HUMMER brand from the new GM.

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