DETROIT, Mich. (WZZM) - After more than a month in bankruptcy, a new General Motors may emerge Thursday.
Our news partner the Detroit Free Press says the U.S. Treasury and GM executives are expected to announce the new automaker Thursday afternoon. The U.S. government is expected to own 60 percent of the new GM, which should have about 2,000 fewer dealers and fewer brands. The UAW, Canadian government and bondholders will hold the other 40 percent.
Thursday's milestone would come after just 39 days in bankruptcy, a feat according to West Michigan's first turnaround consultant.
"It happened at record pace. You know, that's unheard of particularly for a company the size of General Motors," says David Distel. "They had to be very, very quick. The longer companies are in bankruptcy the more their value can deteriorate. In this case, we have an automotive manufacturer, and they really have to worry about their brand and how the bankruptcy and the stigma about the bankruptcy affect it."
A bankruptcy judge gave opponents until noon Thursday to appeal GM's assets sale. Despite the new GM's expected emergence, Distel says the old GM will remain in bankruptcy of an estimated two to three years.
He also says the new GM is not out of the woods yet.
"They're going to have to make money, and most importantly, they're going to have to figure out how to build cars that everyone is going to want to buy, even in environments where the economy is down. It's going to be a big challenge for GM going forward."
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