New GM to exit bankruptcy leaner, meaner and 60 percent U.S. government owned

July 10, 1:16 AMRoad & Driver ExaminerRoman Mica

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                            New GM to energe from bankruptcy leaner and meaner              Photo: AP

It only took about 40 days for General Motors to go bankrupt and become the "New GM". However as the new company is just about to exit bankruptcy the sales numbers are as dismal as ever.

Sales of General Motor's products dropped a staggering 36 percent in June as the company was mired in bankruptcy proceeding which saw the sale of many of its brands except for the "core" brands like Chevrolet and Cadillac.

The New GM will be leaner, meaner and much smaller as the company plans to eliminate an additional 20 percent of its white collar jobs, or about 6000 additional cuts by the end of the year.

"I'm very much looking forward to the point where we're operating in the clean air and the name of the company not being associated with bankruptcy," GM sales chief Mark LaNeve said on Thursday.

According to Reuters:

"GM has burned through $40 billion over the past four years and posted losses of more than $80 billion.

The close of the court-approved sale would mark the completion of an unprecedented effort by the U.S. administration to save GM and Chrysler from liquidation by slashing debt, labor costs and dealerships.

The White House has also disbursed almost $80 billion to shore up the auto industry, including $5 billion in support for auto parts suppliers."