Amy Winehouse Andy Dick Angelina Jolie Anna Nicole Smith AOL Apple Architecture Art Ashlee Simpson Ashley Greene Auto Cars Avril Lavigne Ayu Oktasari Bai Ling Bank of America Barack Obama Beauty and Style Beauty-Style Bernanke Beyonce Bing Bobby Brown Brad Pitt Britney Spears Brittany Murphy Brooke Hogan Business Ideas Business News Calum Best Car News Car Photos Car Reviews Car Videos Carmen Electra Carrie Prejean Casey Johnson Celebrity Celebrity Nails Cheryl Cole China Chopper Lane Splitter Chris Rowe Christina Aguilera Christina Hendricks Cindy Crawford Clinton Clip COMEDY Coming Soon Comment faire un Avion en papier Companies Courtney Love Credit Cards Dalene Kurtis Daniel Baldwin Daniel Mica David Beckham David Hasselhoff Deborah Caprioglio DietFitness Drawing & Coloring Earthquake Economy Eirik Solheim Entertainment Eva Mendes Facebook Facebook-Games Farmville Fastion Forex Funny Game Game Info Game News General Motors Gold Golden Globes Haiti Halle Berry Heather Mills Heidi Fleiss Holly Madison Hot Girls Hot News Hot Women How To How to Make How To Read A Forex Chart HOW TOs Insurance International Investing Ipad Iphone Isaiah Washington Jamie Lynn Spears Jenna Jameson Jennifer Hawkins Jennifer Hudson Jesse Metcalfe Jessica Sierra Jessica Simpson Jobs Jocelyn Wildenstein Joe Weisenthal Jonathan Rhys Meyers Kat Dennings Kate Moss Kate Winslet Katie Price Katie Rees Katy Perry Keeley Hazell Keith Richards Kelly Brook Kelly Clarkson Kendra Wilkinson Kiefer Sutherland Kim Kardashian Kirsten Duns Kiss Style KT Tunstall Laetitia Casta Lauryn Hill Leah Marville Leona Lewis Leonardo DiCaprio lesbian Lesbian-Questions Lil Kim Lily Allen Lindsay Lohan Liz Pulliam Weston Loan Centre Louis Navellier Lynda Carter Make Money Mariah Carey Marisa Miller Mary Kate Olsen Mayim Bialik Megan Fox Mel Gibson Michael Jackson Michael Vick Michelle Obama Michelle Rodriguez Miley Cyrus Mischa Barton Miss World Mobile and Internet Molly Sims Movie Info Movies Mutual Funds Nadia Fazlini Sharip Nail Art Tutorial Nail Samples Nails Naomi Campbell News Nicolas Cage Nicole Polizzi Nicole Richie O.J. Simpson Oirigami Useful Origami Origami Airplane Origami Animal Origami Animal Easy Origami Animal's Face Origami Boat Origami Box Origami Flowers Origami Useful Osama Bin Laden Owen Wilson Pamela Anderson Paper Airplane Paris Hilton Paula Abdul Paula Sladewski Personal Finance Pete Doherty Pete Wentz Play Game Online Police Porsche Quotes about Life Rachel Zoe Real Estate Rihanna Roseanne Bar Sara Barelles Scandal Sean Young Sexual Health Shakira Shannon Elizabeth Sharon Stone Shocking Sienna Miller Star Stocks Strange Story Stupid Celebries Susan Boyle Taiwan Tamil Tiger Tara Reid Teens Tiger Woods Tila Tequila Today's Big story Tom Cruise Tom Sizemore Top Game Top Video Toyota Trading Trailers Travel Twilight Vanessa Hudgens Victoria Beckham Video Women Women-Family Women-Health Women'sHeath World Trade Center

GM: 2010 Profit Expected, May Reinstate Hundreds Of Dealers

5:42 AM
2010 Profit Expected, May Reinstate Hundreds Of Dealers

DETROIT — General Motors Co.'s chairman expects the automaker will be profitable this year and says hundreds of the 1,350 GM dealers who lost their franchises last year could see them restored.

Chairman and interim CEO Ed Whitacre Jr. also said that new Chief Financial Officer Chris Liddell is a candidate to take the CEO post permanently. And Whitacre said he's not confident about selling the Swedish Saab brand.

In a wide-ranging talk with reporters at GM's Detroit headquarters, Whitacre predicted that GM would be profitable this year, although he said that was dependent on the economy and other factors.

That would be a significant achievement for a company that left bankruptcy protection in July after years of losses.

Dealers are getting a chance to regain lost franchises as a result of a congressionally mandated arbitration process that begins later this month.

The 1,350 GM dealerships, which were allowed to stay open until October 2010, were targeted as part of an effort to dump poor performers and better align its dealer base with much lower consumer demand for autos. In many cases, GM had dealerships too close to one another and were competing on price, the company said.

Congress passed legislation late last year that forces GM and Chrysler Group LLC, which shed 789 of its dealers last year, to give the dealers who lost franchises a chance to appeal the decisions. Like GM, Chrysler went through bankruptcy protection earlier this year and both companies are receiving government aid.

Whitacre said GM had a "pretty arbitrary cutoff point" for shedding dealers, and that it probably made mistakes in getting rid of some of them.

When pressed, he said his estimate of "hundreds of dealers" may be closer to 100 than a thousand, but added it's a "substantial number."

Restoring some dealerships could be good for the company because they would sell more cars for GM. But it also could be bad if a "lousy dealer" with a poor storefront got a franchise back, Whitacre said.

When the franchises were revoked last summer, GM officials said dealers were judged on whether they met sales goals, customer service scores, the condition of their buildings and other criteria. They were allowed to stay open through October of this year to sell their inventories.

Under pressure from dealer groups and lawmakers, GM and Chrysler put out proposals that would have allowed dealers to challenge closures in arbitration. But a bill passed by Congress allows them to bring a much wider range of proof that they are profitable.

Dealers have until Jan. 25 to tell the automakers if they will appeal.

Whitacre also told reporters that he would consider the newly-hired CFO Liddell in the search for a permanent new CEO. Liddell, 51, was CFO at Microsoft Corp. but had indicated he wanted to pursue a higher-ranking position.

Liddell, hired late last month as GM's CFO, was the first permanent top manager hired from outside the traditionally insular GM since the company left bankruptcy protection in July. He replaced Ray Young, who transferred to GM's China operations.

At Microsoft, Liddell developed a reputation for holding down costs while building up cash. He instituted a plan to cut $3 billion from the technology company last year that included its first mass layoff, wage freezes and cuts in travel and other expenses.

GM has hired a search committee to find CEO candidates, but it has not presented any yet, Whitacre said.

GM is majority owned by the federal government and Liddell was granted an exemption from government imposed pay caps to take his post. He will be paid $750,000 this year, but will get up to another $5.45 million in stock starting in 2012 if GM successfully sells its shares to the public.

Such a sale, Whitacre said, would come late this year if it happens in 2010. He said it's possible he could still be CEO at that time.

GM received $52 billion in U.S. government aid and has begun repaying $6.7 billion of that as a loan. The rest would be repaid through the stock sale.

Whitacre also said he is not optimistic for a deal to sell its Swedish Saab brand, but he expects the sale of Hummer to a Chinese heavy equipment maker to close on Jan. 31. GM is phasing out Saab and expects to start closing plants this week.

GM has been in talks to sell Saab during the past month with Dutch exotic car maker Spyker Cars. It has also heard from other suitors after an attempt to sell the brand to a consortium led by Swedish sports car manufacturer by Koenigsegg Automotive AB fell apart in November.

But Whitacre said he is not confident a deal can be reached.

"It's real easy. Just show up with the money and you can have it," he said. "Nobody's come with the money, so were in the wind down deal here."

___

AP Business Writer Stephen Manning in Washington, D.C., contributed to this report.

Post a Comment

[facebook][blogger]

Author Name

Xin chào mọi người

Contact Form

Name

Email *

Message *

Powered by Blogger.