Fritz Henderson, GM's new CEO, all but guarantees success in his first press conferen

Sanouk · 03-31-2009, 03:05 PM

After the ouster of Rick Wagoner from General Motors' top spot on Sunday, the world has been waiting to see what direction GM will head under its new leadership, Fritz Henderson, the company's COO. Today Henderson held his first press conference as CEO, and took a very clear stance on what will be done at GM over the next 60 days and beyond.

Henderson laid out a clear four-part approach to putting GM back on its feet, starting with a need for a clear business plan that improves profitability and cash flow - though what that looks like will have to wait until GM releases its new plan in the coming weeks.

The second prong of the return to viability will be a clean balance sheet, which means a huge reduction in debt, or as Henderson put it the "balance sheet needs to be significantly de-levered." How, exactly, those debts will be cut is still unknown, however.

Thirdly, a "deeper" restructuring that what GM has already done, in terms of models, brands and labor, will have to be done. Henderson repeatedly referred to the actions of the past year or so as a "good down payment" on what needs to be done over the next 60 days. Expect cuts across the board.

Finally, GM will have to find some way to make its products more competitive, and to generate revenue across its entire model line. Gone are the days of relying on a handful of products to support the rest.

On the issue of bankruptcy, Henderson was brutally frank, but at the same time optimistic about GM's chances to avoid a court-guided restructuring.

"We will do what it takes to be sure GM is successful in the future and that we can win," said Henderson, but went on to say, "If we are not successful doing it out of court, we will do it in court...By no later than June 1 if we are not able to accomplish this outside of bankruptcy, we will be in bankruptcy."

Bankruptcy could in fact come even sooner that June 1, however, if GM management sees that they won't be able to pull the company out of its hole in time for the June 1 deadline. "If we're not able to accomplish what we need to do ... to have a viable business, we'll move faster...More time isn't going to help the process," said Henderson.

Decisions on Saturn and Hummer expected today are still forthcoming, though Henderson did say Hummer is within a few weeks of coming to a decision on whether it will sell or not. Saturn will continue through 2011 - the end of its current product life cycle, but what the plan will be after that is still under wraps.

Hylton · 03-31-2009, 03:14 PM

We'll just have to see what new proposals come forward.

http://www.cnbc.com/id/15840232?video=1078720591&play=1

TheCaptain · 03-31-2009, 03:18 PM

Hmmm... sounds good. So far...

*GTAHVIT* · 03-31-2009, 03:31 PM

He should get the chance to sink or swim. That's the right thing to do.

kanys · 03-31-2009, 05:05 PM

Quote:

Originally Posted by gtahvit

He should get the chance to sink or swim. That's the right thing to do.

He better show what he can do fast, or get outta there. I know it will be difficult for him but hey he isn't the new CEO of GM for nothing lol.

DeathChill · 03-31-2009, 08:39 PM

See, this is the kind of action GM needs right now!

Vash · 03-31-2009, 09:03 PM

He seems to be hinting at a structured bankruptcy.

Vash · 03-31-2009, 09:22 PM

Breaking News..

Obama has decided bankruptcy best for GM: report

http://www.reuters.com/article/topNe...53003A20090401

Zabo · 03-31-2009, 09:45 PM

Well..that was anti-climactic in a good way. A REALLY Good way. Chevy and Caddy essentially get pumped in and out while the others linger while other viability issues get ironed out.

Odd and kinda hard to wrap your head around..but it works.. I guess.

OverAnxious · 03-31-2009, 10:05 PM

Quote:

Fritz Henderson, GM's new CEO, all but guarantees success in his first press conferen

Did they watch the same press conference I did?

MerF · 03-31-2009, 11:16 PM

I'm in Mexico on a business trip and saw this ticker roll by on CNN en espanol and about pooped myself.

I couldn't get on the site to see how we were reacting, though after searching the posts that were left I pretty much predicted the reactions...of those that were left.

I wish Fritz the best of luck (he does have a pretty cool name, huh?), and hope Rick does well....

...and I'm trying my best to not "lose faith" in my patriotism. That's not a crack at anyone in particular, just the system as a whole.

AZCamaroFan · 03-31-2009, 11:19 PM

I'm beginning to think They should have done the bankruptcy to begin with , and kept the politicians out of it.

*Mr. Wyndham* · 04-01-2009, 12:53 PM

Quote:

Originally Posted by azfan

I'm beginning to think They should have done the bankruptcy to begin with , and kept the politicians out of it.

Whatever happens, I'm glad its the presidency that's dealing with them, and not Congress. It'd take forever and a day for them to decide on anything.

It's good to hear somebody say...something. I still don't like the idea of bankruptcy...but if they feel comfortable with it...if they feel there's 'guarantee' of sorts that the whole company won't die off....fine. I don't know about you all, but I'll be hanging on to my hat once they start the proceedings.

Who knows...maybe a General Motors consisting of Chevy + Caddy can lay the smack down on the the imports by themselves -- I'd like to think so...

They've got subcompact, compact, small, midsized, and large cars. Coupes, convertibles (maybe), and hatches...a small, and large crossovers, a couple SUVs, a couple trucks, and a supercar to boot. Caddy is the luxury mirror of all that...like Lexus, or Lincoln. That's a more comprehensive lineup than most brands. Plus, with fewer vehicles and brands - they can focus on these two core brands. If this is executed perfectly, they should do well by themselves.

2010 will bring a new General Motors, one way or the other.....

Hylton · 04-01-2009, 12:57 PM

Quote:

Originally Posted by Dragoneye

Who knows...maybe a General Motors consisting of Chevy + Caddy can lay the smack down on the the imports by themselves -- I'd like to think so...

They've got subcompact, compact, small, midsized, and large cars. Coupes, convertibles (maybe), and hatches...a small, and large crossovers, a couple SUVs, a couple trucks, and a supercar to boot. Caddy is the luxury mirror of all that...like Lexus, or Lincoln. That's a more comprehensive lineup than most brands. Plus, with fewer vehicles and brands - they can focus on these two core brands. If this is executed perfectly, they should do well by themselves.

2010 will bring a new General Motors, one way or the other.....

Without getting into the franchise crap, absolutely they can! I would also add Buick and perhaps GMC but only if it is the only division selling trucks. Otherwise buh-bye GMC. JMO.....

03-31-2009, 03:05 PM	#1
Sanouk Drives: all US Join Date: Mar 2008 Location: Belgium Posts: 47	Fritz Henderson, GM's new CEO, all but guarantees success in his first press conferen After the ouster of Rick Wagoner from General Motors' top spot on Sunday, the world has been waiting to see what direction GM will head under its new leadership, Fritz Henderson, the company's COO. Today Henderson held his first press conference as CEO, and took a very clear stance on what will be done at GM over the next 60 days and beyond. Henderson laid out a clear four-part approach to putting GM back on its feet, starting with a need for a clear business plan that improves profitability and cash flow - though what that looks like will have to wait until GM releases its new plan in the coming weeks. The second prong of the return to viability will be a clean balance sheet, which means a huge reduction in debt, or as Henderson put it the "balance sheet needs to be significantly de-levered." How, exactly, those debts will be cut is still unknown, however. Thirdly, a "deeper" restructuring that what GM has already done, in terms of models, brands and labor, will have to be done. Henderson repeatedly referred to the actions of the past year or so as a "good down payment" on what needs to be done over the next 60 days. Expect cuts across the board. Finally, GM will have to find some way to make its products more competitive, and to generate revenue across its entire model line. Gone are the days of relying on a handful of products to support the rest. On the issue of bankruptcy, Henderson was brutally frank, but at the same time optimistic about GM's chances to avoid a court-guided restructuring. "We will do what it takes to be sure GM is successful in the future and that we can win," said Henderson, but went on to say, "If we are not successful doing it out of court, we will do it in court...By no later than June 1 if we are not able to accomplish this outside of bankruptcy, we will be in bankruptcy." Bankruptcy could in fact come even sooner that June 1, however, if GM management sees that they won't be able to pull the company out of its hole in time for the June 1 deadline. "If we're not able to accomplish what we need to do ... to have a viable business, we'll move faster...More time isn't going to help the process," said Henderson. Decisions on Saturn and Hummer expected today are still forthcoming, though Henderson did say Hummer is within a few weeks of coming to a decision on whether it will sell or not. Saturn will continue through 2011 - the end of its current product life cycle, but what the plan will be after that is still under wraps. __________________

03-31-2009, 03:14 PM	#2
Hylton Drives: fanboys and ass kissers crazy. Join Date: May 2008 Location: Ottawa, Ontario Posts: 7,275	We'll just have to see what new proposals come forward. http://www.cnbc.com/id/15840232?video=1078720591&play=1 __________________ "BBOMG - More than just a car show.... It's an experience!"

03-31-2009, 03:18 PM	#3
TheCaptain N7 Spectre Drives: 14 ATS Performance 3.6L AWD Join Date: Jul 2008 Location: Moosomin, Saskatchewan, Canada Posts: 2,732 View My Garage	Hmmm... sounds good. So far... __________________

03-31-2009, 03:31 PM	#4
GTAHVIT Blessed Drives: 2013 Sonic RS MT Join Date: Dec 2007 Location: Saint Augustine FL Posts: 28,441 View My Garage	He should get the chance to sink or swim. That's the right thing to do. __________________ Click image to see build thread. PQ - "the love of cars. It's a boys first step toward manhood and a mans last hold on boyhood." Fbodfather - "We do not want to use the Z28 moniker on a car that does not deserve this hallowed name." The_Blur - "Let's not confuse competitors with equals."

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