General Motors Corp. drove in the fast lane to revival on the same day of its iconic bankruptcy filing on Monday, signaling the Obama administration’s determination and confidence in bringing back the industrial giant.

General Motors CEO Fritz Henderson speaks at a news conference following GM’s bankruptcy filing, at the GM Building in New York, June 1, 2009. General Motors Corp filed for bankruptcy on Monday, forcing the 100-year-old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership. (Xinhua/Shen Hong)

About four hours before Obama’s speech, the Detroit-based automaker filed a Chapter 11 petition to the U.S. Bankruptcy Court for the Southern District of New York.

According to a company statement, the U.S. Treasury, the governments of Canada and Canadian Province of Ontario will support GM through bankruptcy. They will hold a combined 72 percent in the reorganized GM.

“Worldwide, GM dealers are open for business, offering competitive financing options on our award-winning vehicles, continuing to honor our industry-leading warranty coverage, and providing outstanding service,” said GM President and CEO Fritz Henderson.

A new GM is expected to be launched in about 60 to 90 days as a separate and independent company from the current GM.

The new company “will be built from only GM’s best brands and operations, and it will be supported by a stronger balance sheet,” Henderson said.

“Furthermore, the U.S. Treasury and the Canadian governments have issued a strong vote of confidence by backing GM’s vehicle warranties,” he said.

STRUCTURE RESHAPE

Hoping to quickly emerge from bankruptcy protection as a new, leaner company, GM will close 14 U.S. factories and three warehouses to slash its operating costs, affecting 18,000 to 20,000 workers in nine states. It aims at bringing the total number of plants in the United States from the current 47 down to 33 by 2012.

The current GM management team will continue to lead the new GM. GM employees worldwide will become part of the new GM.

GM promises to pay dealers’ open accounts and continue warranty and incentive programs. Essential suppliers and employees will be paid in the normal course.

OVERSEAS OPERATIONS

GM confirmed that its operations outside the United States had not been included in the court filing and thus would continue without interruption.

An overnight statement from GM China to Xinhua said the impact of its U.S. parent’s bankruptcy “will be minimal to our China business including our operations and sales.”

At a press conference, Henderson stressed China as the “critical” part both to the current and new GM.

GM has a vehicle manufacturing venture with Shanghai Automotive Industry Corp. of China. GM vehicle sales in China, its largest overseas market, surged 50 percent to a monthly record of 151,084 units in April, in contrast with a sharp decline in the United States.

Last month, GM has confirmed the production of low-emission Ecotec engines at its joint venture in China, which will be mounted on the newly launched Chevelet Cruze compact sedan. And it plans to sell about 17,300 China-made compact cars in the United States in 2011 and to triple that to about 51,500 in 2014, according to a planning document that GM circulated among U.S. lawmakers.

NEW LINE-UP

The new company will focus on GM’s successful brands — Chevrolet, Cadillac, Buick and GMC — with fewer nameplates and a more competitive level of marketing support per brand.

Obama said that GM had prepared a “viable and achievable” plan to rise again, and expressed his confidence that the new GM would be able to produce “high-quality, safe and fuel-efficient cars of tomorrow.”

In a bid to readjust to the shift in customers’ buying patterns from oil-guzzling SUVs and trucks to fuel-efficient cars, the new GM announced the launch of a new product line-up in 2009 and 2010, including the China-manufactured Chevy Cruze.

It has recently introduced Chevrolet Volt, an all-electric plug-in compact car dubbed the company’s “new DNA” that “represents a fundamental reinvention of the American automobile industry.”

“The new GM is here to stay, and our brands position us to compete well in profitable segments with vehicles that are second-to-none,” said Henderson.

VietNamNet/Xinhuanet