WORLD> America
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WORLD> America
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CEO vows better performance as GM exits bankruptcy
(Agencies)
Updated: 2009-07-11 05:59 Henderson, 50, said General Motors Corp. will streamline its bureaucratic management structure, cutting U.S. salaried employment by 20 percent, or 6,150 positions, by the end of 2009. The cuts include 450 executive jobs. Henderson, who was promoted to chief executive in March, will run the global company and oversee its North American operations. GM's former chief operating officer, Henderson was chosen when President Barack Obama said former CEO Rick Wagoner's restructuring plans didn't go far enough. Top executives at the new company will focus on business results, new vehicles, brands and consumers. Bob Lutz, a legendary industry executive, was "unretiring" to become a vice chairman responsible for creative elements of products, marketing and customer relationships, Henderson said. Lutz, 77, had previously planned to retire at the end of the year after more than four decades in the auto business. Nick Reilly, who has served as GM's Asia-Pacific president, will become executive vice president of GM's international operations based in Shanghai, China. The new company will focus on customers, cars and culture. "If we don't get this right, nothing else is going to work," Henderson said at GM's Downtown Detroit headquarters. "Business as usual is over at General Motors." The automaker is launching a "Tell Fritz" Web site to allow owners and the public to share their concerns with senior management, and Henderson plans to go out on the road every month. He said GM will partner with eBay in California to allow consumers to bid on vehicles just as they would in a typical eBay auction. They could also choose a "Buy it Now" option in an experiment to make car shopping easier. Dealers would still distribute the cars. "As a culture, General Motors needs to be prepared to experiment and adjust," he said. New Chairman Edward Whitacre Jr. said GM's trip through bankruptcy protection had been extremely challenging. "There have been a lot of long hours, there have been a shuttering of plants, there have been painful layoffs." Whitacre told reporters after the news conference he expected to have GM's new 13-member board in place in about three weeks. |
