New GM will make money, repay loans, CEO says

General Motors exited bankruptcy Friday, with new owners and a new commitment towards improving its communications with customers.

GM CEO Fritz Henderson said the automaker will pay back its loans from the U.S. government as quickly as possible.

"We recognize that we've been given a rare second chance at GM, and we are very grateful for that. And we appreciate the fact that we now have the tools to get the job done," Henderson said.

Most of GM's assets were transferred to a company controlled by the U.S. government. In bankruptcy, GM was able to dispose of billions in debt. Much of the work was done before the automaker entered bankruptcy court protection.

Henderson vowed to make more regular visits to customers, dealers, suppliers and employees in the U.S. and abroad. The company is launching a site in August called "Tell Fritz," where customers can send ideas and concerns to the CEO. Now free of its crushing debt load and uncompetitive labor contracts, Henderson says executives will again have time to learn from customers again.

"You can always learn," he said. "If you don't learn, you're arrogant."

GM had a reputation for being arrogant. The automaker for decades was the largest automaker in the world, losing that title last year to Toyota. Sometimes, Henderson said, its size meant the automaker couldn't move fast enough and make decisions quickly enough.

Now, with just four brands to sell and no more major structural issues to address, the automaker is poised to start moving faster.

"Bigness itself is not a weapon. Unless you harness it, it just means you're big," says Henderson.

The automaker now has a daunting task: Reinventing itself from the inside out to first behave like a smaller company, and secondly have consumers believe the automaker has changed.

GM is moving long-time auto industry veteran Bob Lutz to a new global communications role, where he will work on changing the company's image, internally and externally. Lutz was responsible for overhauling GM's product development process, improving interior quality and exterior styling.

And he's know for cutting through corporate feel-good messaging and telling it like it is. In GM's headquarters, there is a wall of executive and employee photos, with quotes about business philosophies or how much each person admires GM.

Lutz's quote says: "We can all love one another, but what good is that if the amorous lemmings are all running off the same cliff together?"

In addition to talking more directly to consumers — Henderson says he'll participate in online chats and Twitter conversations more regularly — GM will allow some consumers in California to buy cars directly from eBay. Customers will be able to bid on cars, or use the "Buy It Now" option.

"In all cases, our goal is to make the shopping and buying process as easy as possible for GM customers — on their time and their terms," Henderson says.

Henderson told a news conference that GM completed its 40-day stay under court supervision far faster than anyone thought it could. He said it would repay about $50 billion in government loans ahead of a 2015 deadline.

But the company emerges amid the worst sales slump in a quarter-century.

  • 1
  • |
  • 2
Join the Discussion
blog comments powered by Disqus
You Might Also Like...