Automotive

GM could emerge from bankruptcy Friday

Thursday, July 09, 2009

GM due to come out of bankruptcy by tomorrow ::

GM could emerge from bankruptcy Friday ::

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automotive, liz dueweke

DETROIT (WJRT) -- (07/09/09)--General Motors Corp. appears to be coming out of bankruptcy protection as early as Friday.

A judge's order approving the sale of most of the automaker's assets went into effect at noon.

The automaker has scheduled a news conference for Friday morning.

The United States Treasury Department says they are working to close this sale with GM by Friday.

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And as the era of the New GM begins, many wonder what it will take to put the carmaker back on top

As GM emerges from bankruptcy, it could be a very different company.

"It's a metamorphosis into a butterfly, if you will," said Andrew Borchers, the department head of business at Kettering University. "They have to significantly shed costs.

Borchers says the viability of a new, smaller GM depends a variety of things, like appealing to younger buyers, going green and finding a "niche market."

"They need to get out of the business of trying to be all things to all people and carrying this large load of costs and operating that they have in the past," Borchers said.

The U.S. Treasury says the sale of GMs assets to create a new company is expected to close Friday.

The new company could also cut thousands of salaried jobs while reducing executive ranks as well.

Walt Duvernois is the president of UAW Local 659. And along with many in Mid-Michigan, he will be watching how this historic chapter for the automaker plays out.

"A lot depends on GM selling cars," he said. "What they sell. We're hoping they design the right things and build the right things here in America."

GM and its dealers will also focus on fewer models.