Jalopnik: new gm

STUDY: Each New GM Vehicle Costs Taxpayers $12,200

Matt Hardigree — Thu, 19 Nov 2009 10:30:00 EST

A study by the obviously pro-government National Taxpayers Union claims each new GM vehicle costs the average taxpayer $12,200. Their bizarre assumptions and our analysis below.

GM has been given $52.9 billion in TARP/Federal loans and financing arm GMAC has been given $12.5 billion of which approximately 8.6 billion can be considered GM money. If total car sales reach 10.5 million in 2009 and 12.5 million for 2010 and GM has roughly equal market share next year as it did in 2008 then GM will sell roughly 5.06 million over the next two years. Add and divide and you end up with about $12,200.

Rather than point out that this money protects jobs and keeps American industry from faring worse than it already is, we'll just make a list of all NTU's assumptions used to come up with the $12,200 per car figure plus our own analysis of how many of their assumptions are full of crap:

GM will sell 5.06 million cars in 2009/2010 combined.
(NTU's numbers on GM sales for 2010 are okay based on a SAAR of 10.5 million, the reality is they'll possibly do worse than the 2.31 million cars and instead do 2.25 million.)
GMAC will loan no money back to finance a car to anyone who is also a taxpayer
(They will)
GM will have the same market share in 2010 it had in 2008
(Almost certainly not. It'll probably be worse)
Total vehicle sales will reach 10.5 million in 2009
(More like 10.7 million as of late October)
Total vehicle sales will reach 12.5 million in 2010
(Maybe.)
GM will not pay the $6.7 billion back
(GM's already said it plans to start paying back the loans at the end of this year and even GM's not that PR-illiterate. We think.)
GM will never pay any loan back
(See above.)
GMAC will never pay any loan back
(GMAC has an unfair advantage according to the NTU study itself, therefore we assume it'll remain in business long enough to pay some portion of the loan back.)
GM will not sell any cars after 2010
(OK, here's the real silly part of the study. We all know GM will more than likely still sell cars after 2010, even if they're cars we wish they wouldn't sell.)

So, to quote Pete Sepp of the NTU, "Every time someone in your neighborhood drives home in a shiny new Chevy Silverado, remember that it cost American taxpayers more than $12,200."*

*assuming everything above.

Study: Every GM Vehicle Sold Costs Taxpayers $12,200(Alexandria, VA) – The American taxpayer has put up $12,200 for every General Motors vehicle sold through the beginning of 2011, and $7,600 for every Chrysler vehicle sold as well, according to a new report issued by the 362,000-member National Taxpayers Union (NTU).
The report, The Auto Bailout – A Taxpayer Quagmire, authored by NTU Adjunct Scholar Thomas D. Hopkins, Professor of Economics at the University of Rochester, does the math on what the government bailout of the auto industry – including General Motors, Chrysler, and GMAC – actually means to American taxpayers, including how much each taxpayer has contributed to the auto industry since December 2008 and how much each vehicle is costing us.
"Every time someone in your neighborhood drives home in a shiny new Chevy Silverado, remember that it cost American taxpayers more than $12,000," said Pete Sepp, NTU Vice President for Policy and Communications. "I wonder if all those Americans without work right now could think of any better ways to spend that money."
The study found that the average American taxpaying family has invested roughly $800 in the auto bailouts so far. Moreover, the study found, the government support poured into General Motors, Chrysler, and GMAC – the financing subsidiary that supports sales at both – now stands at a towering $78.9 billion. Given that figure, and an estimate of how many vehicles GM and Chrysler will sell through the end of 2010, the study finds that each vehicle one of the bailed-out companies sells costs taxpayers $10,700.
Finally, breaking down the costs by company, the study reports that every Chrysler vehicle sold costs taxpayers $7,600, and every GM vehicle sold costs taxpayers $12,200.
The research is based upon a November study released by the Government Accountability Office (GAO), entitled Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM, " a follow-up report on the "Troubled Asset Relief Program," as well as statements and reports released from the U.S. Treasury.
Additional Findings Include:
• GMAC receives government guarantees not available to most private firms. Coincidentally, these are the same private firms that are forced to compete with GMAC taxpayer-assisted bank, Ally Bank. These guarantees save GMAC about $500 million annually in interest costs. During the first ten months of 2009, GM and Chrysler sales fell further than other major auto producers, down 33.4 percent and 38.9 percent, respectively.  While the prospect of repayment of GM and Chrysler loans might be expected, after bankruptcy the vast majority of the bailout funds are no longer legal obligations of the newly-structured GM and Chrysler. If Americans are to believe public officials' claims that the government will eventually reprivatize the auto industry, the necessity of a thoughtful exit plan is essential. However, at this time no such plan exists, making it likely that the Treasury will not recover its investment.
"[T]he bailout has created moral hazard problems, inadvertently handicapping the progress of stronger, non-subsidized producers," Professor Hopkins concluded. "The problems extend beyond just the auto industry, as favored status for one financial company and its bank necessarily complicates prospects for non-subsidized rivals. The time has come to stop such bailouts, and in an orderly way, to seek at least some recovery for taxpayers."
Note: To view the complete issue brief, The Auto Bailout: A Taxpayer Quagmire, click here.

About the Author
Thomas D. Hopkins is Professor of Economics at Rochester Institute of Technology. He served as Dean of the College of Business 1998-2005 and as President, U.S. Business School in Prague, Czech Republic, an RIT MBA program where he taught 1992-98. He was the Arthur J. Gosnell Professor of Economics in RIT's College of Liberal Arts, 1988-98. Hopkins held senior management positions in two White House agencies during the Ford, Carter and Reagan Administrations; in 1979 President Carter appointed him a charter member of the federal government's Senior Executive Service. In the early 1980s, he served as Deputy Administrator, Office of Information & Regulatory Affairs, in the Office of Management & Budget. His research on business burdens of government regulation has been sponsored by the Organization for Economic Cooperation & Development (OECD) in Paris and the U.S. Small Business Administration (SBA) in Washington. He has testified on regulatory policy issues before committees of the U.S. Senate and House, and Canada's House of Commons. He co-authored a 2001 SBA report, "The Impact of Regulatory Costs on Small Firms," as well as National Research Council reports on marine transportation, the Exxon Valdez oil spill, and trucking/rail/barge transportation. He previously was on the faculty of American University, University of Maryland, and Bowdoin College.
Background
The Auto Bailout – A Taxpayer Quagmire is based on data obtained from the Government Accountability Office and Treasury reports on the Troubled Asset Relief Program. The study was sponsored by the National Taxpayers Union (NTU), a nonpartisan, nonprofit citizen organization founded in 1969 to work for lower taxes, smaller government, accountability from public officials, and economic freedom at all levels. For further information, visit www.ntu.org.

[NTU via Carscoop]

Photo Credit: Brendan Smialowski/Getty Images

"New" GM Drops Totally Useless Financial Results

Ray Wert — Mon, 16 Nov 2009 08:00:00 EST

The "New" GM released a quarterly "preliminary managerial result" this morning and despite being not in any way comparable with the pre-bankruptcy GM, they're certainly illustrative of the enema-like cleansing effect of bankruptcy.

That's because they went from an astounding $95 billion in debt pre-bankruptcy to $17 billion under the "New" GM. Here's the full press release. Items to note:

● GM Q3 earnings: EBIT loss before special items of $261 million and managerial net loss of $1.2 billion.'
● Cash reserves increased by $3.3 billion to $42.6 billion.
● GM posted revenue of $28 billion in the third quarter of 2009 (July 1-Sept. 30, 2009), which was up approximately $4.9 billion in Q2
● GM will burn $8.3 billion in cash this next quarter on debt repayments, Delphi and restructuring so expect the 4th quarter to look worse than this quarter.
● GM "anticipates modest growth, with total industry volumes estimated at 62 to 65 million." Expects US SAAR at a rose-colored 11-12 million units sold in 2010.
● GM spent $320 million for cull of 2,042 U.S. dealers.
● These aren't "real" financial results. All these numbers are not provided using GAAP principles. So, you know, if you're an accountant, prepare to vomit a little bit before you go any further.

General Motors Announces the New Company's July 10-September 30 Preliminary Managerial Results

* Operating actions result in EBIT loss before special items of $261 million and managerial net loss of $1.2 billion
* Continued progress on structural cost reductions
* Healthier balance sheet with significantly lower debt
* $3.3 billion positive managerial operating cash flow favorably impacted by working capital; $42.6 billion third quarter liquidity position expected to decline materially in the fourth quarter
* Accelerated plan to repay U.S. and Canadian taxpayers; first $1.2 billion payment in December

DETROIT – General Motors Company (GM) released today preliminary non-GAAP managerial results1 for its first 83 days of operation, providing an initial look at its financial performance since it began operations as a new company on July 10, 2009.

"We have significantly more work to do, but today's results provide evidence of the solid foundation we're building for the new GM. With a healthier balance sheet and a competitive cost structure, our focus is on driving top line performance. We'll achieve that by winning customers over, one at a time, with vehicles that deliver performance and value," said GM President and CEO Fritz Henderson.

Revenue

GM posted revenue of $28.0 billion in the third quarter of 2009 (July 1-Sept. 30, 2009), which was up approximately $4.9 billion compared to the revenue recognized by General Motors Corporation, or "Old GM," in the second quarter of 2009.

The improvement was largely attributed to a higher global seasonally adjusted annual rate (SAAR) of 67.8 million units in the third quarter, compared to 62.7 million units in the second quarter of 2009, and GM's stabilizing global share. In China, Brazil, India and Russia (BRIC), GM had 13.0 percent of the combined market share in the third quarter, up 0.2 percentage points from the second quarter of 2009.

GM's global share was 11.9 percent in the third quarter, up 0.3 percentage points from the first half of the year for Old GM. GM's U.S. market share in the third quarter was 19.5 percent, flat in relation to Old GM's U.S. share for the first half of the year.

GM finished the third quarter with U.S. dealer inventories of approximately 424,000 vehicles; a reduction of approximately 158,000 units from the end of the second quarter.

Contributing to GM's sales in the U.S. was the strong retail performance of some of its newest vehicles, including the Chevrolet Camaro and GMC Terrain, as well as the Chevrolet Equinox, Buick LaCrosse and Cadillac SRX which are generating higher average transaction prices and higher residual values than previous model year vehicles.

In other markets around the world, strong consumer appeal for a number of GM's newest vehicles including the Holden and Chevrolet Cruze, Daewoo Matiz Creative, Opel/Vauxhall Astra and Chevrolet Agile are helping to reclaim global share. In fact, the Astra recently claimed its first major award by winning the prestigious Golden Steering Wheel award by the Auto Bild magazine and the Agile was just elected the 2010 Car of the Year by AutoEsporte magazine in Brazil.

The China market in particular is proving to be a strong contributor for the company's results. Maintaining a leading market share position in China, GM and its joint venture partners continue to see an upward trend, selling more than 478,000 vehicles in the third quarter of 2009, up from approximately 451,000 and 364,000 units in the second and first quarters, respectively.

Managerial Results

After the inclusion of special items, GM's managerial earnings before tax for the July 10-Sept. 30 period was a loss of $1.0 billion. GM recorded special items for the same period of $505 million, attributed primarily to dealer restructuring, attrition-related charges and Delphi.3 For the July 10-Sept. 30 period GM posted a managerial loss after-tax of $1.2 billion.

GM managerial earnings before interest and taxes (EBIT) before special items for the July 10-Sept. 30 period was a loss of $261 million, with GM North America reporting a loss of $651 million and GM International Operations reporting a profit of $238 million. Managerial earnings before interest, taxes, depreciation and amortization (EBITDA) was $1.5 billion before special items.

Total structural cost for the company has been significantly reduced by the resizing and delayering of the company including salaried and hourly headcount reductions, engineering savings and volume related savings. GM structural cost for the period July 10-Sept. 30, 2009 was $9.1 billion. Structural cost for Old GM for the period Jan. 1-July 9, 2009 was $22.0 billion. For the 9-month period ending September 30, 2008, Old GM had structural cost of $37.8 billion.

While financial statements between Old GM and GM are not comparable, the above structural costs breakdowns for the two companies are provided for perspective.

Balance Sheet and Cash

For the period July 10-Sept. 30, GM had positive managerial operating cash flow before special items of $3.3 billion, reflecting the favorable working capital impact from production start up, timing of supplier payments and lower capital spending. The favorable working capital impact is not expected to repeat itself in the fourth quarter (see the "Looking Ahead" section below). For the period July 1-July 9, Old GM had negative operating cash flow of $3.6 billion, reflecting extremely low production in North America.

As of September 30, 2009, cash and marketable securities totaled $42.6 billion. Included in this amount was $17.4 billion held in escrowed funds from the United States Treasury (UST) and Export Development Canada (EDC), with $8.1 billion of this amount allocable for future repayments of the UST and EDC loans, $2.8 billion for the recently completed Delphi settlement and $900 million for healthcare in Canada, leaving a remaining escrow cash balance of $5.6 billion.

In light of improving global economic conditions, stabilizing industry sales and its healthier cash position, GM announced today that it plans to accelerate repayment of its outstanding $6.7 billion in UST loans as well as the C$1.5 billion (US$1.4 billion) in EDC loans ahead of the scheduled maturity date of July 2015.

GM plans to repay the United States, Canadian and Ontario government loans in quarterly installments from escrowed funds, beginning next month with an initial $1.2 billion payment to be made in December ($1.0 billion to the UST and $192 million to the EDC), followed by quarterly payments. Any escrowed funds available as of June 30, 2010 would be used to repay the UST and EDC loans unless the escrowed funds were extended one year by the UST. Any balance of funds would be released to GM after the repayment of the UST and EDC loans.

In addition, the company has begun to repay the German government loans which were extended to support Opel, and had a balance of €900 million (~US$1.3 billion) as of September 30, 2009. Opel has already repaid €500 million (~US$0.7 billion) of that in November, and will repay the remaining €400 million (~US$0.6 billion) balance by the end of the month. The cash balance in Europe as of September 30, 2009 was US$2.9 billion.

GM's total debt as of September 30, 2009 was $17 billion, including $6.7 billion in U.S. government loans, $1.4 billion in Canadian government loans, $1.3 billion in German government loans and $7.6 billion in other debt globally. The $17 billion debt level does not include the UAW or CAW VEBA notes or preferred stock, which are $2.5 billion, $0.7 billion and $9 billion, respectively.

While GM has reached settlements for the UAW and CAW VEBAs, the debt associated with the agreements will not be recognized until all preconditions are met and they become effective, which will be December 31, 2009 or later. Prior to the start of the new GM, total debt of Old GM was $94.7 billion as of July 9, 2009.

Looking Ahead

Globally, GM expects total vehicle industry volume to moderate in the fourth quarter of 2009, with an estimated SAAR to be approximately 65.4 million units, down from 67.8 million units in the third quarter. Following the expiration of the successful ‘Cash for Clunkers' stimulus program in the U.S. which contributed to GM's strong sales in the third quarter, the company anticipates the U.S. industry total vehicle SAAR volume in the fourth quarter will be approximately 10.7 million units, compared to 11.7 million units in the third quarter.

Looking ahead to 2010, GM anticipates modest growth, with total industry volumes estimated at 62 to 65 million units, with a modest recovery in the U.S. market where the outlook for the 2010 calendar year for total vehicles is estimated at 11-12 million units.

GM expects to have negative net cash flows in the fourth quarter of 2009 due to a number of factors including cash outflows relating to the Delphi settlement of $2.8 billion, the working capital impact of payment term adjustments of approximately $2 billion, payments for U.S., Canada, Ontario and Germany government loans of approximately $2.5 billion and continuing restructuring cash costs of approximately $1 billion. As a result, global cash balances at the end of 2009 are expected to be materially lower than third quarter levels of $42.6 billion.

# # #

GM To Begin Paying $6.7 Billion In Loans Ahead Of Schedule

Ray Wert — Sun, 15 Nov 2009 23:31:40 EST

The "New" GM will try to play the Lee Iacocca PR card by repaying $6.7 billion — of a total of $50 billion in government loans — ahead of the scheduled repayment date of July, 2015.

Keep in mind that although a move like this would suggest GM's now a fiscally stronger company, it's not expected to show a profit when financial results are reported on Monday.

In its last quarterly earnings report, in May, the company said its had lost $6 billion and had used $10.2 billion more in cash than it generated from operations. One would assume they'll have to show numbers a bit better than that. We guess we'll have to wait and see whether this early repayment is a financial victory or a pyrrhic one.

Ed Whitacre: GM Chairman, Shameless Self-Promoter

Matt Hardigree — Tue, 10 Nov 2009 16:40:00 EST

GM's new chairman Ed Whitacre first made a splash pointlessly starring in a new GM commercial. Now GM's been forced to send out a release about an unimportant speech the Chief Self-Promotional Officer's giving at Texas Lutheran University.

How do we know it's not an important speech? It's at Texas Lutheran University way out in Seguine, Texas. I'm Lutheran and I live in Texas, and I forget Texas Lutheran University exists sometimes. Though to be fair to Chairman Whitacre, it's quite possible he's just shamelessly promoting his wife, who is a regent at TLU.

Buy hey, it'll be streamed live right here at 8:30 PM (EST) tonight and maybe, just maybe, he'll break some news. Go ahead, Ed, I dare you. Make alerting the world to your completely random and almost certainly unimportant speech somehow necessary.

GM Press Release

General Motors Chairman Ed Whitacre will speak to students and faculty of Texas Lutheran University tonight at 8:30 p.m. ET.Whitacre, who taught business policy at Texas Lutheran University in 2007 following his retirement from AT&T, will talk about the automobile industry and the global economy.
Texas Lutheran University will broadcast the lecture via live webcast. To view the lecture live, visit: http://www.stretchinternet.com/flash/player/tluadmin.html
Please note: the speech will only be available live. A replay will not be immediately available following the speech.

Photo Credit: Jamie Rose/Getty Images

GM Planning to Hold an I.P.O. Next July

Ray Wert — Mon, 10 Aug 2009 08:30:00 EDT

GM plans an IPO next July. The "New GM," not the old one. [NYT]

Bob Lutz on CNBC

Ray Wert — Fri, 10 Jul 2009 14:30:00 EDT

GM's newly-re-employed "Maximum" Bob Lutz will be on CNBC at 4 PM EST. Watch it.

GM Partners With EBay To Auction New Cars

Ray Wert — Fri, 10 Jul 2009 09:30:00 EDT

We always hear complaints about the new car buying process being antiquated and "old n' busted." GM's apparently seeking to change that as it emerges from bankruptcy by partnering with eBay for new car auctions.

Although the salient details are slim as of now, here's what we know from today's press release announcing the "New GM", aka the "General Motors Company.":

"We're also working on new ways to make car buying more convenient for our customers, including an innovative new partnership with eBay in California to revolutionize how people buy vehicles online," Henderson said. "Customers will be able to bid on actual vehicles just like they do in an eBay auction, including the option of choosing a predetermined 'buy it now' price. We'll be testing this and other ideas with our dealers over the next few weeks, and hope to expand and build upon them in the coming months. 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. Stay tuned."

We're told by GM CEO Fritz Henderson that it's "just an experiment." But they are "really excited about it."

So no idea yet as to whether it'd be for all vehicles, whether it would be for just a select few vehicles. The biggest hurdle such an idea faces is the dealer network. More than likely the line in the press release of "testing this and other ideas with our dealers over the next few weeks" indicates it'll more than likely be the dealers who'll be providing these services as opposed to direct-from-manufacturer sales. Either way, as long as the consumer experience is eBay-like, it won't matter to them as they'll perceive it to be direct-from-manufacturer — which is often how they perceive the experience now.

New "General Motors Company" Logo May Go Green?

Ray Wert — Fri, 10 Jul 2009 09:00:00 EDT

The image associated with this post is best viewed using a browser.According to the AP, the logo for the "New GM" (now called "General Motors Company") may change from blue to green to show ~~Congress and the President~~ consumers it's greener and focused on fuel efficiency. UPDATE: It's not gonna happen.

UPDATE: Our sources now tell us this is probably not gonna happen. Sorry folks, no green-washing today!

The AP continues:

"Ed Welburn, GM's vice president of design, is leading a group that is studying name and logo changes, but no recommendation has been made, according to one of the people. Changing the background of the familiar square blue-and-white GM logo has been discussed, said the people, who requested anonymity because no decision has been reached."

(Hat tip to tiberiuswise!) [AP via AOL Autos]

Image Credit: Adam Morath, AOL Autos

GM CEO Bankruptcy Update Press Conference At 9 AM

Ray Wert — Fri, 10 Jul 2009 08:35:00 EDT

GM CEO Fritz Henderson's press conference starts at 9 AM here. We'll be twittering here.

GM’s Bob Lutz Reverses Retirement Decision, May Lead Global Marketing

Ray Wert — Thu, 09 Jul 2009 20:45:38 EDT

The image associated with this post is best viewed using a browser.According to Automotive News, GM's once-outgoing product czar's decided to stay on with the "New GM" as head of a newly-consolidated marketing and communications empire. Apparently, his Letterman interview was just that good.

We called GM PR staff for a comment and got nothing. GM spokesman and chief communicator Steve Harris also declined to comment. Bear in mind this report comes after the The Wall Street Journal reported earlier Lutz would stay, but didn't identify his role.

Lutz said in February he would leave the company for good at the end of the year. He has been replaced by Tom Stephens as vice chairman of global product development while remaining vice chairman and senior adviser. Guess he'll get to keep that job. [via Automotive News]

Federal Judge Approves Sale Of Good Parts To Newer Model GM

Ray Wert — Mon, 06 Jul 2009 02:00:00 EDT

A federal judge approved GM's plan late Sunday to sell its best assets to a new, government-backed company — "New GM" — a crucial step in completing the automaker's trip through bankruptcy court and, you know, not liquidating. [NYT]

"New GM" Sale Approval To Come Today

Ray Wert — Tue, 30 Jun 2009 09:00:00 EDT

"New GM" sale may be approved in bankruptcy court today. Follow along on Twitter here.

GM To Lay Off 4,000 White Collar Workers By October 1st

The Auto Insider — Wed, 24 Jun 2009 14:30:00 EDT

As part of an already-announced move designed to slim down U.S. non-union employees 15% to 23,500, GM plans to eliminate 4,000 U.S. salaried employees via buyouts and retirement incentives by October 1st. [Bloomberg]

Future Buick Enclave Spied In CBS News Spot?

The Auto Insider — Wed, 10 Jun 2009 08:30:00 EDT

While watching a CBS News segment on the future of GM, we noticed something lurking in one of the design studio shots. Could this be the next-gen Buick Enclave or are our eyes deceiving us?

It's fairly obvious that this is a proposal for a large Buick CUV, but it's hard to tell exactly what model this'll eventually turn into given the conceptual nature and constant change within the automaker's design studios. Given that they've opted to build this in full size rather than as a scale model leads us to believe there might be something brewing here.

By the time 2012 hits the Enclave will have been on the market long enough for a mid-cycle refresh, but this don't look like no re-skin job, instead we're willing to bet that this is an all-new model based on a modified version of the current Lambda platform. With the Buick Enclave recently arriving in the Chinese market with some extensive modification, it's likely that this new model is being designed to appeal to a global audience with global safety and powertrain options in mind. It'll be some time before we know for sure, but it's always fun to speculate.

GM Salaried Retiree Benefits Cut by Two-Thirds

The Auto Insider — Tue, 09 Jun 2009 18:00:00 EDT

GM salaried retiree benefits cut by two-thirds as part of "difficult changes." [TheDetroitBureau]

Edward Whitacre To Be Chairman Of "New GM"

Ray Wert — Tue, 09 Jun 2009 10:45:00 EDT

Edward E. Whitacre, Jr., former chairman and CEO of AT&T, will become chairman of the "New GM" when launched later this summer. He will succeed Kent Kresa, another old, white man currently serving as interim chairman. Full release below.

Edward Whitacre, Jr. to Become Chairman of New GM

Edward E. Whitacre, Jr., former chairman and CEO of AT&T Inc., will become chairman of the New GM when the company is launched later this summer, GM's interim Chairman Kent Kresa announced today. Kresa will continue to serve as interim chairman until the launch.

Whitacre and Kresa, along with current board members Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis, Jr., E. Neville Isdell and President and Chief Executive Officer Frederick A. Henderson, will serve as the nucleus of the New GM board, providing management oversight and a continuing commitment to transparency and world-class standards of corporate governance.

The six other members of the current board will most likely retire no later than the approval of the sale of GM assets to the new entity. A selection process is currently underway for four more directors to serve on the board of the New GM. In addition, the Canadian government and the new UAW Voluntary Employee Benefit Association (VEBA) will each nominate one director, bringing the total number of New GM directors to 13.

Whitacre, 67, was chairman and CEO of AT&T Inc. and its predecessor companies from 1990 to 2007. During his tenure, which began with Southwestern Bell, Whitacre led the company through a series of mergers and acquisitions—including that of AT&T in 2005—to create the nation's largest provider of local, long distance and wireless services. He serves on the boards of ExxonMobil Corporation and the Burlington Northern Santa Fe Corporation and holds a degree in industrial engineering from Texas Technological University.

"The appointment of Ed Whitacre as chairman represents a very auspicious beginning for the New GM," said Kresa. "We look forward to working with him to complete the reinvention of GM and maximize the enormous potential of this new enterprise."

"I am honored to be able to serve GM at this critical juncture and take part in its reinvention," said Whitacre.

General Motors Corp., one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the U.S., followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Photo Credit: Hunter Martin / US PGA Tour

CNBC Takes Walk Down "Old GM" Memory Lane

Matt Hardigree — Tue, 02 Jun 2009 15:30:00 EDT

Yesterday, CNBC inter-spliced their GM bankruptcy coverage with happier moments from the General's past (i.e., the 1950s). Either they were mocking GM or Kudlow was having another coke-fueled fantasy of Erin Burnett in an apron baking lasagna. [CNBC]

GM Says Disclosure Of Financials Up To Shareholders

Ray Wert — Tue, 02 Jun 2009 10:45:00 EDT

GM CFO Ray Young told a media conference call today that the new privately held company won't have to disclose financial statements. Instead, it will be up to shareholders to decide. You know, like the American people. Do American taxpayers get to vote? We say disclose. What say you?