New leader for GM, new hope for bankruptcy?

Fritz Henderson, behind the wheel at GM

Fritz Henderson, behind the wheel at GM

It’s been a long time since I’ve sat down and been able to say these words:

The CEO of GM seems smart.

Fritz Henderson took over the job from ousted Rick Wagoner on March 29 and is already conceding that bankruptcy protection may be the best solution for restructuring GM.

HOORAY for the Fritz!

With the Obama administration announcing their willingness to stand behind GM warranties and being strict on the terms for lending GM more money, it’s a pretty solid bet that General Motors is still going to be around after the dust clears from the storm of bankruptcy.

While the car industry will be changed once GM picks itself up again, we are a society that will always buy new items. Cars and trucks are definitely on that list, and a structured reorganization in bankruptcy court should help the company become more lean and adapt to changing demands.

I’ve been in Southern California for the better part of the last two weeks, and I’ve seen more car dealers than I can remember. Everything from Mazda to Maserati, Hummer to Honda. On top of the new car dealers, I’ve seen used car lots on nearly every block. They’re like Starbucks where I live in Washington State. My point? Over-saturation.

After a GM (and Chrysler?) bankruptcy, new car dealerhips will be trimmed down, while the used car salesmen will probably be sitting pretty as more people buy used.

It’s a refreshing change to hear from a CEO of GM who is open to all options instead of being so obstinate as to ignore the facts of the company’s situation.

I believe a bankruptcy will bring great things to a new GM. What about you: Do you even care whether or not GM goes into bankruptcy?

-tgriffith



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