[经管营销]GMs Bankruptcy.ppt

1 GMs bankruptcy and its changes after reorganization A warmer Are you familiar with the auto industry? What brands do you know? Do you know about the features of cars made in different countries? Cars made in Germany, Japan, the US, and China? Have you ever thought about your future career? Which occupation will you choose: a blue-collar at an auto maker or a university professor? What do you know about “工会” in China? 2 Outline About GM Problems of the old GM Chapter 11 of the bankruptcy code About UAW 3 4 General Motors General Motors Corp., one of the worlds largest automakers, was founded in 1908. Today GM manufactures cars and trucks in 34 countries, and sells and services vehicles in some 140 countries. With its global headquarters in Detroit, GM employs 244,500 people in every major region of the world. On July 10, 2009 GM emerged from a Chapter 11 bankruptcy reorganization A look at GM by the figures Presentation 1 What is Chapter 11 bankruptcy? Chapter 11(1) Chapter 11 is a chapter of the United States Bankruptcy Code. When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 7 the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. Chapter 11(2) Chapter 11 is a form of bankruptcy that involves a reorganization of a debtors business affairs and assets, thereby enabling the firm to avoid being closed down by any single creditor and gives investors a chance to decide whether the firm can again be made profitable. Under Chapter 11, unless the court rules otherwise, the debtor remains in control of the business and its operations. Chapter 11(3) Chapter 11 is reorganization, as opposed to liquidation, and accomplishes this objective through the use of a bankruptcy plan. With some exceptions, the plan may be proposed by any party in interest. Debtors in Chapter 11 have the exclusive right to propose a plan of reorganization for a period of time (in most cases 120 days). After that time has elapsed, creditors may also propose plans. Plans must satisfy a number of criteria in order to be “confirmed“ by the bankruptcy court. Among other things, creditors must vote to approve the plan of reorganization. Upon its confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan. Criticism: “excessively lenient” GM Gets a Fresh Start Who owns GM now? Discussion 1 Please list the reasons for GMs bankruptcy. Management: decentralization + managerial arrogance (+ cannibalization) Labor costs: higher wages, medical benefits & pensions Overseas competition: UAW vs. anti-union High gas prices: $ 4/gallon Economic downturn: car sales US consumers: fuel-efficient US media: hostile US government 1 Market opening for Japanese carmakers 2 No bailout for GM! 3 a bridge loan, a Band-Aid from the Bush administration 4 Steve Rattner from the Obama administration an act of giving capital to a company in danger of failing, in an attempt to save it from bankruptcy, insolvency, or total liquidation and ruin. 过桥贷款. A type of short-term loan, a bridge loan is interim financing for an individual or business until permanent or the next stage of financing can be obtained. Obama Administrations response Presentation 2 Please prepare a background introduction about UAW UAW (1) The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers (UAW) one of the largest and most diverse unions in North America, with members in virtually every sector of the economy. Representing workplaces ranging from multinational corporations, small manufacturers and state and local governments to colleges and universities, hospitals and private non- profit organizations. Headquartered in Detroit, Michigan, the union has about 431,000 members in approximately 800 local unions, which negotiated 3,100 contracts with some 2,000 employers. UAW (2) CRITICISM The public perception is that the UAW is to be blamed for the automotive industry crisis of 2008-2009. They point to union workers high wages and overly generous benefits compared to those working at non-union Japanese auto plants in the U.S. as one of the primary reasons for the poor competitiveness of the Big Three. Supporters of UAW point out that the automotive crisis extends across national boundaries. Toyota expects its first loss in 70 years in 2008. Sales for the first quarter of 2009 fell an average of 37 percent worldwide for Toyota, Nissan, and Honda, while Volvo, Scania, PSA Peugeot Citron, Renault, Fiat, BMW, and Daimler are receiving bailouts from their respective home governments. All are companies which are not organized by the UAW, and some are not unionized at all. Key word: POWERFUL Comprehension What are the new changes after GM emerged from bankruptcy? What are the new GM executives to do to meet the challenges in the next phase? Surviving brands 29 Hybrid Electric Vehicles (including Plug-In HEV) 混合动力电动汽车 （包括可外接充电HEV） IC Engine and Transmission Improvements 内燃机和变速器改进 Hydrogen Fuel Cell 氢燃料电池电动汽车 Petroleum (Conventional & Alternative Sources) 石油 (传统和替代来源) Bio Fuels (Ethanol E85, Bio-diesel) 生物燃料 (乙醇E85，生物柴油) Hydrogen 氢 Electricity (Conventional & Alternative Sources) 电力(传统和替代来源) Battery