The company’s ability to pay back ahead of time is a sign that GM’s financial plan is working, says GM CEO Ed Whitacre. This is definitely good news for GM investors around the globe. Whitacre also stressed on the importance of letting their investors reduce their equity investments.

GM’s sales shot up to 36%, though, compared to the previous year. The popular crossover models including the 5th generation Camaro, the mid-sized Malibu and Lacross, and the range vehicles Equinox, Traverse, Acadia, and SRX all contributed to the increase in sales growth.

Based on the recent press release of GM, Fairfax will serve as the company’s primary source of the next generation of Malibu models. Detroit Hamtramck, which currently produces Cadillac DTS and Buick Lucerne, will also be provided with equipment to produce the Malibu. Also stated in the press release is the company’s assurance that the Chevrolet will be able to meet its market demand.

GM’s Malibu-related investments totaling $136 M in Fairfax and $121 in Detroit cover machinery, equipment, tools and facilities.

The program is operated in collaboration with U.S. Bank. Pilot runs of the leasing program include vehicles of GM sold in Ohio, Michigan, Connecticut, New Jersey, and New York. The new gen Cadillac SRX is being offered for lease nationally by the bank. The initial run will go through August 31, 2009.

GM was forced to cut their leasing program last year due to the drop in profits. Consumers also showed low demand for vehicles because of the recession. The economy is starting to fix itself and the demand for cars has been up recently. According to statistics that monitors the demand in the leasing market, there was a 22% jump in the market demand for the Escalade of Cadillac. The Enclave from Buick has an 18% rise.

Although GM sales was doing okay without the leasing program, the car manufacturer believes that they have a sector which really needs it. The crossover Cadillac SRX really adds excitement to the luxury leasing program since it is offered nationwide.

The 2009 models that will be initially offered are the Traverse and Malibu from Chevrolet, and the CTS from Cadillac. Aside from the Cadillac SRX, other 2010 models like the LaCrosse and Enclave from Buick, GMC Acadia, and Equinox from Chevrolet will be offered

The monthly fees of the customers will depend on how much they put as down for the vehicle with the first month of payment due upon signing. The rates are expected to be very competitive. The company is also not asking for any security deposits.

Robert Gerber, the judge who ruled on the case, described it as a necessary step to prevent the death of a critically ill patient. The court has given a stay of four days which permits a close as early as July 10.

The sale will transfer in essence all of the properties of General Motors to the NGMCO Inc. which was established by the Department of Treasury. NGMCO will be known as General Motors Company once the sale is completed and will operate through the corporate GM and all of its sub brands.

Fritz Henderson will be the CEO of the newly established GM. The cost of operations will also be competitive in terms of its structure with standing agreements with the UAW and CAW, organizations of Auto Workers in United States and Canada, respectively.

The new status of GM will allow it to operate and gain profits at lower volume of productions. GM attributes this foresight to the cleaner debt sheet and better balance sheet post bankruptcy.

Daewoo, Holder, and other subsidiaries of GM outside the of U.S. will be acquired by the new GM but continue to operate without any interruption.

The Department of Treasury will be owning about 60.8% of the new company while 17.5% goes to UAW, and 11.7% to the Ontario government and CAW. Bond holders of the old GM will be getting 10% of the stake.

The picture is not that clear especially when one considers the effort of GM in developing the Volt and the Buick crossover. But with the announcement of General Motors that it will be withdrawing from its partnership with Toyota at the NUMMI or New United Motor Manufacturing Incorporated, the move of re-branding the Prius may be a logical move.

The withdrawal was made after a final agreement as to which future product line up should be developed cannot be made between the two parties.

A spokesperson from GM North America informed the press that the joint venture between Toyota and their company has no future units planned for production.

The Prius though is already set for production at the California NUMMI plant since the plans of doing it at Mississippi did not materialize. The production at the NUMMI factory will also allow Prius to meet the increasing demand for hybrid vehicles.

The re-branding of the Toyota Prius is a great offer that might be too good to decline. Some worry though that with all the paper works, approval, and production, the re-branding of the Prius as a GM product may intersect with the timeline of the Volt which is due for release by late 2010. Toyota on the other hand is sure to be very happy with this development…

According to some reports, there will still be some impediments to overcome before GM can see its new beginning. Most of these processes will not have GM calling the shots— the bankruptcy judge still needs to rule on urgent matters by July 1. The court will hear a call for sale based on Section 363 which will involve putting on the market of the GM assets.

The General Motors is eyeing to form a new company by mid July and try to cut its time in the bankruptcy court. Among the major issues needed to be addressed is the reorganization.

The car manufacturer aims to chop of from its rank hundreds of dealerships across the United States before the end of 2010. The dealers who will remain in business can definitely smile but be ready for tougher demands for their businesses.

In the near future, GM representatives are set to meet with the dealerships to discuss their sales goals and the new setup that the dealerships must adapt to.

According to insiders, Gm will be focusing on their brands and there is a looming anxiety among dealerships that non-GM services and goods will be eventually discontinued.

Some dealerships may not agree to sign the new contract with GM and will have to raise some issues, there is a hint though that they will be terminated by the bankruptcy court if they will not sign.

GM executives reveal that it might structure one of its plants that is scheduled to go on idle for the production of the vehicle. The plan will create 1200 jobs, which includes salaried and hourly labor. The car manufacturer has not selected a specific plant yet, but the investment is said to be between $600 million and $700 million.

In the US and around the globe the segment of small cars is the fastest growing market. The GM designers believe that the new generation of small cars will be ahead of the pack in terms of customer appreciation.

The specs of the new car have not been revealed. It will not be like Chevrolet Aveo which is built in South Korea or the Spark which is due for release in 2011. The Volt and the Cruze belong to the segment of larger cars. The company has also shown small, concept cars like the Groove and the Trax.

Cars in the B segment are considered entry-level, small cars. The Toyota has the Yaris in the B class while Honda has Fit, and Ford markets Fiesta. Aveo represents GM in this cluster.

According to company executives the chosen factory will be producing around 160,000 cars. Production of the small cars is in-line with the government proposal of raising the standards of fuel efficiency to 35.5 miles per gallon for 2016 car models. Right now fuel mileage standard is set at 25.30 mpg. This was prompted by skyrocketing fuel prices, which last month marked by $0.42 of increase in the price of gasoline.

The car industry believes that the demand in class b cars will continue to grow. GM has also made the plan to make production of the small car profitable for the company amid its financial problems.