After a tumultuous couple of months clouding the popular car brand, General Motors is now ready to stand up once again, starting a new chapter with a new and supposedly better GM in the U.S. auto industry. Among the highlights of the new GM include leaner greener models and now 61% owned by the U.S. government.

The debts have been cleared and the business continues. But if GM is not careful in its strategic approach, they may end up falling short of attaining goals they have. Apparently, these are only some things they have to watch out for.

With a grueling economy and people choosing to shy away from new car purchases for now, GM has its work cut out for them. New marketing approaches and wiser cars for the conservative motorists have to be done if GM wants to make the new company fare better than the old one.

“It is the smaller, leaner, tougher, better cost-focused GM,” said George Magliano, an automotive analyst with the consulting firm IHS Global Insight. “But they still have to deal with the problems that they faced longer-term.”

(Source) Yahoo News

Tags: auto industry, car brand, car purchases, consulting firm, debts, economy, General Motors, global insight, GM, marketing approaches, models, motorists, new car, new chapter, new marketing

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Yesterday, we had posted that General Motors finally got approval for the transfer of assets to the “New” GM. And while many approved and disapproved that piece of news, GMAC issues a statement of their own regarding this development.

In conjunction with the closing of the sale, the contracts GM has with GMAC will be transferred to the new GM entity. GMAC is pleased to conduct its business operations with the new GM entity and to be part of the solution to stabilize and strengthen the U.S. auto industry.

Again this is bound draw some issues. What about the debts and liabilities? What fate does befall them? Technically, we have been talking about the assets or the so-called good sides of the deal. What about the other pieces of the GM puzzle that are totally clueless to date?

Well you can be assured that GM will be in the headlines once again from hereon. There are still some loose ends to cover.

(Source) Press

Tags: assets, auto industry, business operations, conjunction, contracts, court bankruptcy, debts, General Motors, GM, GMAC, headlines, liabilities, loose ends, puzzle, u s auto

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General Motors may finally find itself emerging from bankruptcy after reports stated that a bankruptcy judge has approved the sale of its bulk assets to the new company. But while that may seem good news, controversies are still in the air, particularly the debts and liabilities that GM had incurred which forced it to shut down.

U.S. Judge Robert Gerber said in his 95-page ruling that the sale was in the best interests of both GM and its creditors, whom he said would otherwise get nothing.

GM will leave bankruptcy court with significantly reduced debt and labor costs, as well as fewer dealerships and brands. But it’s still operating in an environment where fewer American are buying cars. That means that people injured by a defective GM product in connection with an incident that occurred before June 1 would have to seek compensation from the “old GM,” the collection of assets leftover from the sale, where they would be less likely to receive compensation.

GM’s government-backed plan for a quick exit from Chapter 11 hinges on the sale, which will allow the automaker to leave behind many of its costs and liabilities. The Treasury Department has vowed to cut off funding to GM if the sale doesn’t go through by July 10.

After one good news follows another issue for dispute. Depending on how you look at it, it all makes sense. But one thing that is for sure, the more bickering involved the harder it is to resolve the issues. Then again, no one wants to be left out in the cold with nothing to hold.

(Source) Press

Tags: assets, automaker, bankruptcy court, bankruptcy judge, buying cars, Chapter 11, controversies, creditors, debts, General Motors, GM, gm product, hinges, judge robert, liabilities, one thing, quick exit, robert gerber, treasury department

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For the new chief executive, steering the new Chrysler to help generate more profits for Fiat is the objective of this acquisition. Being given the controlling interest of Chrysler, the merger of both car companies are upbeat that they can get by the sagging fortunes that befell the U.S. car company.

Calling it a new season of capitalism, Marchionne is no stranger to business challenges. He was able to pull it off in 2004 when he took over Fiat and now, expectations are high that he will be able to pull it off again. Actually he has already started, assigning top Fiat managers in Detroit last week. This is seen as the preliminary moves to which a whole lot more is expected in the following months.

“Marchionne knows he has to race against time,” the Corriere della Sera newspaper of Milan explained. “He knows that when the debts are eliminated, the costs reduced to the levels of Japanese competitors with factories in the United States, then miracles of technology and marketing have to be performed to give back life to a company that in the last six months has almost halved its sales and which, even before the financial crisis, saw its share of the U.S. market fall from 15 percent to 10 percent.”

(Source) Washington Times

Tags: business challenges, capitalism, car companies, car company, debts, Fiat, financial crisis, helm, japanese competitors, marchionne, miracles, new man, race against time

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