General Motors Renaissance Center, Detroit, Michigan
Fritz Henderson, GM president and CEO, says this will be the company's one chance at survival. “We are going to do it once and do it right,” he said in a press conference while confirming that new products like the 2011 Chevrolet Cruze, 2011 Chevrolet Volt and 2011 Chevrolet Spark still on track. GM also has launched GMReinvention.com, a new Web site to keep consumers updated on the company's massive restructuring.
The basics of Chapter 11 court proceedings are just the beginning. The first GM bankruptcy hearing 4 p.m. today in NYC, with Judge Robert Gerber presiding; the quick hearing keeps payroll, warranties and incentives rolling. GM has a deadline of July 10 to finalize restructuring under plan--dealer shutdowns and plant closings included. In the meantime, GM will be delisted from the Dow Jones Industrial Average along with Citigroup, to be replaced by Cisco and Travelers.No one involved in the massive restructuring will guarantee the outcome--and even Henderson admits every automotive turnaround requires products and finance to work. GM's chances of pulling both of those efforts off is dicey, says Al Ingrisani. The former assistant Labor secretary says the chances for successful GM reorganization while changing product lines are "zero to near zero...the only factor in their favor is unlimited checkbook from the government, until the political will runs out."
More GM Chapter 11 Coverage
Watch President Obama's remarks and the GM press conference at noon:
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