In the Money Section of the USA Today paper yesterday morning was a story titled “The pieces come together today for a smaller, leaner GM”. Supposedly, GM’s bankruptcy or debt cleansing is supposed to bring to light a new car company that is able to bring to market the kinds of cars that consumer want to buy. As I have talked about before, the automotive industry seems to have trouble producing cars that people want to buy (see my article on Tim Jackson speaking to RMAP); What is GM going to do to reinvent itself and answer the poignant questions of consumers and the press?
GM's new logo--in green?
According to CEO Fritz Henderson at the June 1 Chapter 11 filing, “Today marks the beginning of what will be a new company, a New GM, dedicated to building the very best cars and trucks, highly fuel-efficient, word-class quality, green technology development and truly outstanding design.” What makes the new GM different from the old GM? Let’s explore.
The idea behind the bankruptcy is that GM will remove debt that was a major obstacle in the company’s ability to stay in business. Basically, GM is being allowed to keep its best and most valuable assets and the less interesting or valuable assets are going to be left in bankruptcy court (closed plants and a golf course to name a few). Other differences are found in the board member line up and the vehicle offerings. The board is supposed to get seven new members to help refresh the mix for this reinvention exercise. As for the vehicle line up, it will consist of more fuel-efficient or electric vehicles like the Chevrolet Volt and Cruze and rely on fewer brands. The strategy: Slim and streamlined company, efficient and interesting cars and a continued focus on technology developments. The real question is why weren’t they doing this before?
Black Chevy Volt 2
Bottom line: GM is trying to reinvent itself, but the future is going to show whether the consumers really believe it. For now, small cars are the way of the future. Reminds some of the Chrysler K-car platform that saved Chrysler once upon a time.
Be sure to check out TheCarConnection.com's story: Did Obama Pick GM's New Small Car Plant? Also, check out the blogs, reviews and the photo gallery right here at AllSmallCars.com.
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