General Motors, the biggest US automaker, has exited bankruptcy protection with reduced debts of US$48 billion in 41 days, far quicker than expected.

Announcing the news at a press conference in Detroit early Friday morning, GM President and CEO Fritz Henderson said this is an exciting day for GM. "We will work hard to repay the trust and the money that so many have invested in GM," he said.

The new company, which emerged after a 41-day stay in court, vowed to end "business as usual" and immediately announced a shake- up of its management team, eliminating its North American president position and some other top jobs.

Henderson will take responsibility for GM's operations in North America. Nick Reilly will be named executive vice president of GM International Operations, which will be based in Shanghai.

Despite the changes announced this morning, GM will make the bulk of its management changes, including cuts of its top management ranks by 35 percent, by the end of the month.

"To speed day-to-day decision-making, two senior leadership forums, the Automotive Strategy Board and Automotive Product Board, will be replaced by a single, smaller executive committee, which will meet more frequently and focus on business results, products, brands and customers," GM said in a statement.

"There are no third chances," Henderson said, adding that the company does not plan to seek additional government assistance.

The White House praised GM's exit. "While this restructuring required difficult and painful sacrifices from all of the company' s stakeholders and the American taxpayers, it has saved tens of thousands of American jobs and positioned GM to reclaim its position as a competitive and sustainable global company," the White House said in a statement.

"The hard work of charting a path to viability now rests with GM's board and management, but we are confident that we remain on track to ultimately see returns on these taxpayer investments," GM said.

GM and US Treasury Department officials signed the documents at the company's primary bankruptcy law firm in New York on Thursday night.

The Detroit automaker has shed billions in debt, cutting four of its eight brands and trimming its work force significantly, among other measures.

Its good assets had been approved for sale to a group headed by the US Treasury, though the Obama administration insists it will not "micromanage" the company.

The government, in exchange for agreeing to invest 50 billion U. S. dollars in GM, will hold a 60.8-percent stake in the company.

In addition to the US government's controlling interest, the United Auto Workers union gets a 17.5-percent stake of the company through its retiree health care trust, and the Canadian government will control 11.7 percent.

Henderson disclosed that GM has received all of the 50 billion dollars, though he said some of the government money is held in escrow.

The new GM will begin with a much stronger balance sheet, including US debt of about 11 billion dollars, which excludes preferred stock of 9 billion dollars, and could change under fresh- start accounting. In total, obligations have been reduced by more than 40 billion dollars, GM said.

The parts of GM not moving to the new company will become part of "old GM," a collection of assets and liabilities that will be sold to pay creditors.

GM said the company is launching a "Tell Fritz" website to improve customer communications. Starting in August, Henderson will be on the road every month and around the world to meet with customers and others.

"We need to listen to the people who matter most -- the people who own and drive General Motors cars and trucks," he said.

Henderson said GM would do its best to create shareholder value to improve the return to taxpayers. GM's compensation practices must be approved by the Treasury Department's special master.

GM noted that by the end of 2010, the company will operate 34 assembly, powertrain and stamping plants, down from 47 in 2008, and capacity utilization is expected to reach 100 percent during 2011.

The company's overall US employment will decline from about 91,000 at the end of 2008 to about 64,000 at the end of this year, "creating a company sized to respond quickly to changes in the market, while still retaining the global scope necessary to develop world-class products and technologies," GM said.

GM will launch 10 vehicles in the United States and 17 outside in the next 10 months. The company also vowed to try an experimental program in California to sell vehicles via auction on eBay.

Detroit Mayor Dave Bing congratulated GM on its quick exit, saying the emergence of a new GM is an encouraging sign of progress for the auto industry and the city as well.

(Xinhua News Agency July 11, 2009)