sites will spend an astounding 62 to 40000 6

General Motors plays his last card to avoid being placed under the protection of the law of bankruptcy, a deadline is looming in only thirty-five days. A few days after the departure of CEO, Rick Wagoner, and the refusal by the State of its restructuring by the Obama administration plan, the giant fallen Detroit yesterday presented a new version of this plan, which represents a very net screws turn on multiple chapters.

Side wage costs, the proposed reduction is 34, as of 2010, the level of last year. Plan announced by the new boss, Fritz Henderson, the workers employed in the U.S. sites will spend an astounding 62 to 40,000, 6.800 posts version Wagoner eliminations. This not counting the surrender of the European Opel and the Swedish Saab. Still in America, leading mills will be finally of 47 currently at only 31. Same cuts at dealers in the country: their number will drop to 42 in just two years, businesses 6.246 to 3.605 passing.

Explanation of this radical restructuring: GM must now be organized to cover the balance on the basis of a U.S. automotive market of just 10 million vehicles sold each year, against a level of 11.5 to 12 million extrapolated last February, itself far 16 million threshold of before crisis... Indeed, that had not prevented GM cash losses as of 2004.

Another illustration of this cure to weight loss without precedent: the abandonment next in the Pontiac brand, that echoes that of Oldsmobile in 2000. As the No.1 world is already seeking buyers for its Hummer, Opel-Vauxhall, Saab and Saturn brands, which will no doubt repeated by dealers, this new stage means that it will have more soon than four pillars business in North America: Chevrolet, Cadillac, Buick and GMC, against a portfolio of eight today. Logically, GM should soon give Ford its historical place of first American constructor.

"An important step."

The plan also aims to restructure $ 27.5 billion of debt bond, in exchange for shares. A process that would reduce almost to nil the weight of current shareholders, leaving them with only 1 of the future round table. GM offers to creditors 225 of its shares in increments of 1,000 dollars in debt, which is to say that they see themselves recognize 38 of their claims, and that they should hold some 10 of the capital of the "new GM"... A condition that at least 90 of them accept the transaction. "A success of the Exchange will allow GM to restructure without appeal to the Court of bankruptcy," indicated the Group yesterday. Otherwise, it is the repository of record, with the risk of receive nothing at all, prevents Fritz Henderson.

In the new fund managed by the UAW Union that will cap commitments of health to retirees, GM means divide by 2 its own commitments, for the moment of $ 20 billion, and barter half against common shares.

Yesterday as "an important step" the restructuring of the debt, the White House plan would not engage more financially, while she still signed last Friday a cheque of $ 2 billion, bringing the total already released in the direction of the group to 15.4 billion. Treasury will be soon widely sought to transform debt into shares GM, which logically from the US State the first shareholder of the constructor.