The plan was disclosed during a meeting with financial analysts and bankers. The executives gave a briefing with regard to the company’s plans as it may offer public stocks before 2010 closes.

The carmaker ended their agreements with roughly 2,000 dealers when it went into bankruptcy in 2009. The logic is that a smaller network will allow GM to save some money and beef up their sales and earnings at their remaining locations.

Some 1,160 dealers argued though against the rationale of the move. The car manufacturer reinstated 666 of them with 600 of these dealers accepting the terms offered by GM while the rest are pushing for arbitration.

According to GM execs, the company is planning to go down to around 4,000 showrooms in future. This is way behind the earlier estimates of around 4,100 through 5,300 dealers.

Even if General Motors keep 5,300 dealers in their roster by the end of the year, it will still be a big drop from their status last year. The number of dealers of GM though still dwarfs the number of Japanese carmaker Toyota which is pegged at 1,500.

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.

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.

The move is supported by as much as 74% of the union locals and is set to help make the American brands more competitive with the foreign brands of vehicles rolling into the US shores.

The deal with the UAW focuses on the essential elements like decreasing the production cost per unit and explore possibilities on retirement plans. These points will help GM handle its large population of retired workforce and its current wages and benefits for the employees. At present, the changes will affect about 54,000 employees across 46 plants and offices in the United States.

The element often overlooked on a competitive gap analysis is the long history of the company in terms of employment. Foreign car makers like Nissan, Honda, and Toyota may be building thousands of cars in the US on a yearly basis but does not have the big overhead of retired employees to manage like that of Chrysler, Ford, or GM.

The efforts of the negotiating panels from both the UAW and GM will give way to the closing in of the competitive gap and help the auto industry. Everything is also made possible with the cooperation of the employees and retirees of GM.

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.

General Motors is against the wall as it faces the June 1 deadline of the federal government to restructure their business and come up with compromise deals with its debtors so they can get more loans.

Insiders have warned that the car manufacturer might not be able to beat the deadline. Experts foresee GM to seek bankruptcy protection when the bell rings on June 1.

Earlier reports cited Fiat as the favored bidder with greater than 50% potential of winning the Opel takeover as based on the expertise that the company has. The latest information suggests that some German officials have expressed preference for the offer from Magna International.

GM officials are also skeptical of the plans of Fiat top executives to combine the Opel business with its stakes on Chrysler LLC and the automaker’s operation in Europe and Latin America.

According to reliable sources, GM is bargaining for at least a 40% share of Fiat’s planned enlarge group. The latter is planning to give GM only a 10% stake.

Officials from General Motors have not commented on the matter publicly. The German government released reports that Opel will rely on bridge loans to survive while the bids are being considered. The evaluation process is expected to take several weeks.

During the General Motors press conference at the North American International Auto Show, it was announced that two fuel efficient Chevrolets will hit North America in 2011—The Chevrolet Spark mini-car and the seven-seater Orlanda multi-purpose compact vehicle.

The Chevrolet Spark was formerly introduced as the Chevrolet Beat Concept at the New York Auto Show in 2007. While most of the Beat’s concept was adapted, the implementation of larger windows is the most notable change. The fog lamps, headlights, and grille have been changed; the front has been altered to appear less sporty; and the Spark also looks as if it has been raised higher off the ground.

“Chevrolet Spark will bring great style, roominess and versatility to the segment of extremely fuel-efficient small cars in the U.S.,” Troy Clarke, president of GM North America, said. “The decision to add the Spark to Chevrolet’s portfolio reflects the brand’s commitment to being a fuel efficiency leader in the country.” The full production form of the Chevrolet Spark will be shown in March 2009 at the Geneva Auto Show. Europe will get the first glimpse of its sales in 2010.

On the other hand, Chevrolet Orlando is a sports-utility, family van and wagon rolled into one, which was recently revealed at the Paris Auto Show. It will join fellow Chevrolet models in U.S. showrooms sometime in 2011.

Chevrolet is confident that both cars will get a 40 mpg. North America Chevrolet Vice President Ed Peper is convinced that these small Chevys will make a big impact in the market particularly to those who are adamant in their demand for fuel efficiency, vehicle functionality and aesthetics.

The engine is designed with cylinder heads that eliminate the exhaust and intake manifolds. The castings of the journals of the crankshaft bearing and oil circulation set up are also especially engineered.

This engine with a very lightweight block is due under the hood of the next generation Chevrolet Silverado and GMC Sierra. If the production of the engine would have pushed through next fall, these vehicles would have been more fuel efficient.

The move to delay the production of the engine in Tonawanda New York is just one of the desperate moves of the autoworld giant to stay afloat amid the rough hits of the financial crisis. GM has been trying to sell off some assets, get rid of some brands to create a miracle after four years of being non-profitable.

GM was able to secure several patents in connection with the development of the efficient diesel engine and early test runs have shown promising performance compared to a gasoline engine.

Executives of the company commented that they are looking into a possible joint venture to produce the engine for GM. It may take at least a year though before production can kick off in case GM decides to revive the program.

GM will continue to offer the 6.6L Duramax to keep its presence in the diesel truck field. They are also offering the hybrid versions of the Sierra and Silverado.

In February, GM dropped the plan of constructing a plant for the assembly of the Volt engine. The engines will come initially from a European factory while their Flint, Michigan plant is reorganized for the production.

Cervone, 46, was chosen to become the new senior vice president and chief communications officer of UAL Corp. This is the parent company of the United Airlines.

As of today, there is no news yet about Cervone’s successor in GM. Right before he left the company, he was able to ask for a $13.4 billion federal loan from the government under former Pres. George W. Bush’s term. General Motors was able to get $9.4 billion before the aid was abruptly stopped by the White House very recently.

Cervone was chosen by United Airlines Corporation because of his great leadership and team playing skills. The General Motors save certainly proved to be a golden feather on Tony Cervone’s cap.

According to UAL President and CEO Glenn Tilton, Tony Cervone is just what the company needs to better communicate UAL’s business plans to the government and the general public.

Tony Cervone will be handling all internal and external communications in UAL. He will be at the head of UAL’s partnership communications, crisis communications, and public & media relations.

Before the UAL appointment, Cervone was considered a candidate for the succession of retiring GM PR Chief Steve Harris. Cervone was officially appointed senior VP and chief communications officer in UAL last February 4 in Chicago.