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Posted on Jun 9th, 2009 by Vlad Balan

No Comments Category: General Motors, News

Earlier today, in a press release, GM’s interim Chairman Kent Kresa announced that when the New GM will be launched, later this summer, its chairman will be Edward Whitacre, Jr. Kresa will continue to serve as interim chairman until the launch. Whitacre and Kresa, along with current board members Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis, Jr., E. Neville Isdell and President and Chief Executive Officer Frederick A. Henderson, will serve as the nucleus of the New GM board, while six other members of the current board will most likely retire no later than the approval of the sale of GM assets to the new entity.

A selection process is currently underway for four more directors to serve on the board of the New GM. In addition, the Canadian government and the new UAW Voluntary Employee Benefit Association (VEBA) will each nominate one director, bringing the total number of New GM directors to 13.

Whitacre, 67, graduated from Texas Tech University in 1964 with a bachelor’s degree in Industrial Engineering and was chairman and CEO of AT&T Inc. and its predecessor companies from 1990 to 2007. Also, he serves on the boards of ExxonMobil Corporation and the Burlington Northern Santa Fe Corporation.

“The appointment of Ed Whitacre as chairman represents a very auspicious beginning for the New GM,” said Kresa. “We look forward to working with him to complete the reinvention of GM and maximize the enormous potential of this new enterprise.”

“I am honored to be able to serve GM at this critical juncture and take part in its reinvention,” said Whitacre.

Read More: “Edward Whitacre to become Chairman of New GM”

Posted on Jun 4th, 2009 by Vlad Balan

No Comments Category: Other Carmakers

As part of the restructuring process the ‘new GM’ is going through, the company has decided to get rid of its private jet fleet, including the hangar used to house them at the Detroit Metropolitan Area. The fleet includes two Gulfstream V jets leased from Suntrust Leasing Corp since 2001 and five Gulfstream G350 jets leased from AVN Air LLC since 2007. A new G350 starts at $30 million, while the Gulfstream V is no longer in production but its pricing started at $50 million, so GM’s fleet is valued somewhere at around $250 million. Also, GM will save $488,000 a year just by giving up on the hangar rent.

Good news for the company, but bad news for its execs, who’ll have to use commercial flights from now on.

Read More: “GM to get rid of its jet fleet”