General Motors 2010 Annual Report Download - page 128

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
• Acceleration of the reduction in U.S. nameplates to 34 by 2010 — there were 34 nameplates at December 31, 2010;
• A reduction in the number of U.S. dealers from 6,246 in 2008 to 3,605 in 2010 — we have completed the federal dealer
arbitration process and reduced the number of U.S. dealers to 4,500 at December 31, 2010;
• A reduction in the total number of plants in the U.S. to 34 by the end of 2010 and 31 by 2012 — there were 40 plants in the
U.S. at December 31, 2010; and
• A reduction in the U.S. hourly employment levels from 61,000 in 2008 to 40,000 in 2010 as a result of the nameplate
reductions, operational efficiencies and plant capacity reductions — through these actions, our special attrition programs and
other U.S. hourly workforce reductions, we have reduced the number of U.S. hourly employees to 49,000 at December 31,
2010.
Old GM had previously announced that it would reduce salaried employment levels on a global basis by 10,000 during 2009 and
had instituted several programs to effect reductions in salaried employment levels. Old GM had also negotiated a revised labor
agreement with the Canadian Auto Workers Union (CAW) to reduce its hourly labor costs to approximately the level paid to the
transplant automakers; however, such agreement was contingent upon receiving longer term financial support for its Canadian
operations from the Canadian federal and Ontario provincial governments.
Chapter 11 Proceedings
Old GM was not able to complete the cost reduction and restructuring actions in its Revised Viability Plan, including the debt
reductions and VEBA modifications, which resulted in extreme liquidity constraints. As a result, on June 1, 2009 Old GM and certain
of its direct and indirect subsidiaries filed voluntary petitions for relief under Chapter 11 (Chapter 11 Proceedings) of the U.S.
Bankruptcy Code (Bankruptcy Code) in the U.S. Bankruptcy Court for the Southern District of New York (Bankruptcy Court).
In connection with the Chapter 11 Proceedings, Old GM entered into a secured superpriority debtor-in-possession credit agreement
with the UST and EDC (DIP Facility) and received additional funding commitments from EDC to support Old GM’s Canadian
operations.
The following table summarizes the total funding and funding commitments Old GM received from the U.S. and Canadian
governments and the additional notes Old GM issued related thereto in the period December 31, 2008 through July 9, 2009 (dollars in
millions):
Description of Funding Commitment Funding and Funding Commitments
Additional
Notes Issued (a) Total Obligation
UST Loan Agreement (b) ............................................ $19,761 $1,172 $20,933
EDC funding (c) ................................................... 6,294 161 6,455
DIP Facility ....................................................... 33,300 2,221 35,521
Total ............................................................ $59,355 $3,554 $62,909
(a) Old GM did not receive any proceeds from the issuance of these promissory notes, which were issued as additional compensation
to the UST and EDC.
(b) Includes debt of $361 million, which the UST loaned to Old GM under the warranty program.
(c) Includes approximately $2.4 billion from the EDC Loan Facility received in the period January 1, 2009 through July 9, 2009 and
funding commitments of CAD $4.5 billion (equivalent to $3.9 billion when entered into) that were immediately converted into
our equity. This funding was received on July 15, 2009.
126 General Motors Company 2010 Annual Report