New General Motors Hopes to Profit in 2 Years

Henderson talked extensively about the need for GM to prove that it can change its culture and sell more cars.

"Business as usual is over at General Motors," he said.

Henderson announced GM will take steps to better address the needs of customers. He said the company needs to listen to the people who matter the most. The company will be launching a "Tell Fritz" Web site where people can send messages to the management team.

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GM plans to make money by emphasizing quality and revising its fleet so that it is more energy efficient. One car GM is excited about is the Chevy Volt, a rechargeable electric vehicle that is due out in late 2010. The company is also betting that consumers will again flock to GM showrooms if it can do a better job proving its vehicles are some of the best on the road.

Henderson said the company needs to expand in the U.S. and announced that GM will launch 10 new vehicles domestically. The objective is to create products that are not just competitive but best in class, he said.

But, he said, the success will come through an emphasis on fewer, better car models.

In addition to marketing and production goals, Henderson announced that the company will reduce its management ranks by 35 percent and salaried employees by 20 percent by the end of 2009. The position of president of General Motors North America has been eliminated, he said. Henderson will assume immediately assume responsibility for the auto makers North American operation.

In the hopes of improving sales in the U.S., Henderson announced that GM will soon launch 10 new vehicles. Going forward the objective is to create products that are not just competitive but are the best in class, he said.

Bob Lutz will become a vice chairman responsible for all creative elements of products, marketing and customer relationships, Henderson said. Lutz was scheduled to retire at the end of the year.