CEO Fred Henderson Sheds Light on the State of GM
It’s common knowledge that America’s Auto Industry is suffering in the recent financial crisis. However, few people could have predicted that a push by US officials for GM to make financial cutbacks could possibly result in GM declaring bankruptcy on June 1st. It could be argued that the Automobile Industry has been hit hardest by the drawback in consumer spending as a result of the recession.
In a press conference on April 17th, GM CEO Fritz Henderson attempted to clarify some of the speculation surrounding possible decisions being made by General Motors. As of right now, there has been no official decision on whether or not GM will declare bankruptcy on June 1st. Since there has been no decision yet, GM has been pursuing a dual-strategy that will be able to be implemented in both situations (with bankruptcy, or no bankruptcy). The official decision on whether or not GM will declare bankruptcy will be declared on June 1st, Henderson said.
In addition to this, Henderson dictated that GM is attempting to pursue what they call a “four-core brand strategy”. This strategy includes GM’s plan to keep Buick, Chevrolet, Cadillac and GMC brands. The Pontiac brand will also be included in this plan, though only as a niche brand. The reasoning behind this originates largely from the fact that some of the vehicles that GM is most excited about are of the Buick brand. Also, Henderson stated that GM still views both GMC and Buick as very profitable brands for General Motors.
There are plans to sacrifice some of GM’s famous brands, however. The most highly publicized decision includes the sale of the notorious Hummer brand SUV. It’s expected that three purchasers will submit their final bids on the Hummer within the next week. By the end of April or May, there should be a concrete decision on the fate of the Hummer. Infiniti dealerships based out of New Jersey we had the chance to talk with stated their feeling for the fate of the Hummer, mentioning it was “…sad to see such a historical vehicle slip out of GM’s hands”.
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