General Motors Boss Has Hummer in His Sights

The new boss of General Motors has pledged to go "deeper, harder and faster" in a restructuring aimed at saving the ailing carmaker as decisions loom over plant closures and the future of the super sized car brand Hummer.

At a press conference in Detroit, chief executive Fritz Henderson said he would prefer to avoid bankruptcy but that a filing was "certainly more probable" than before the Obama administration rejected GM's recovery plan. "Our preference would be to use the next 60 days to accomplish [restructuring] out of the court process," said Henderson. "If we're not successful doing it out of court, we'll do it in court."

GM's brands range from Vauxhall to Chevrolet, Cadillac and Saab. But among Henderson's first choices will be whether to sell or shut Hummer, the military-style marque loathed by green activists which has seen its sales collapse by 51% over the last year. The struggling brand is both a financial and conceptual millstone for GM which is trying to re-cast itself as environmentally progressive. GM has been looking for buyers for Hummer and had promised action by the end of March but analysts have speculated that a lack of interest could result in Hummer's closure.

"We've been in dialog with several interested parties," said Henderson. "We're within weeks of making a judgment on whether we're going to have a sale or not."

Henderson was installed in GM's top job after the White House's removal of long-serving boss Rick Wagoner. The government's action has caused concern on Wall Street, where it is seen as a warning that the bosses of struggling banks such as Citigroup and Bank of America could be imperilled.

Senior White House economic adviser, Austan Goolsbee, made it clear that the government wanted sacrifices from GM's bondholders, who are owed $28bn (£20bn) by the carmaker: "If they're wanting to play chicken, that seems like a bad idea."

In an effort to stimulate demand, GM announced that it would guarantee to make monthly payments on certain car loans if US customers lose their jobs after buying new vehicles. Ford and Hyundai have similar initiatives.

Henderson made a personal plea to GM's employees for patience.

"This is my home. I happen to be born in Detroit, I'm from the state of Michigan," he said. "I understand how people are feeling. I understand the fear."

Pitch battle:

The task of rescuing the biggest US carmaker has fallen to Frederick "Fritz" Henderson, a globe-trotting troubleshooter who has visited 45 countries for General Motors. A native of Detroit, Henderson was a pitcher on the University of Michigan's baseball team. He joined GM in 1984 after a first job as a Price Waterhouse accountant. He served as the firm's regional boss in Latin America, Asia and Europe before becoming chief financial officer in 2006. Henderson has a reputation as a "firefighter" able to repair tricky situations for GM. In his spare time, he likes to read "male trash" adventure novels by the likes of Robert Ludlum and Clive Cussler.