Courtesy Jay Yarow of Business Insider

A person familiar with the situation tells the AP that GM has emerged from bankruptcy.

All it took was 40 days, 2 fewer than Chrysler. Bravo to Steve Rattner. Now let’s see if the turnaround plan will work.

Here’s longer look at the turnaround plan by the AP:

By TOM KRISHER and EMILY FREDRIX – DETROIT (AP) — After a night spent signing mounds of paperwork authorizing the transfer of cash, real estate, technology and other property, GM attorneys are expected to officially usher the new General Motors out of bankruptcy protection on Friday and onto a path toward a hopefully profitable future.

Once the world’s largest and most powerful automaker, the troubled company is expected to emerge cleansed of massive debt and burdensome contracts that would have sunk it without federal loans. Spurred on by the Obama administration’s support, the process took just 40 days, even slightly quicker than crosstown rival Chrysler Group LLC’s 42-day timeframe.

On Thursday, a bankruptcy court order allowing GM to sell most of its assets to a new company went into effect. The new GM, 61 percent owned by the U.S. government, will face a brutally competitive global automotive market in the middle of the worst sales slump in a quarter-century.

At a 9 a.m. press conference Friday, CEO Fritz Henderson will announce that GM will cut another 4,000 white-collar jobs, including 450 top executives. The company still employs 88,000 people in the U.S. and 235,000 worldwide.

Henderson also is expected to describe how GM will streamline its bureaucratic management structure to become profitable again. GM has said it will be able to make money even if the U.S. auto market stays at a depressed level of 10 million to 10.5 million vehicles sold.

Yet despite massive cost reductions, experts say GM must produce vehicles that people want to buy, and change its image to one on the cutting edge of efficiency and quality.

“It is the smaller, leaner, tougher, better cost-focused GM,” said George Magliano, an automotive analyst with the consulting firm IHS Global Insight. “But they still have to deal with the problems that they faced longer-term.”

Rep. Gary Peters, whose Michigan district is home to three GM factories, said the company’s emergence signals a new era for the domestic auto industry and the thousands of people it employs.

“With bankruptcy in the rearview mirror, U.S. auto companies will even more aggressively pursue new technologies, become more globally competitive,” he said. “Decades from now, our nation will be glad we did not let a global credit crisis put an end to the American automobile.”

“I’m very much looking forward to a point where we’re operating in clear air, and the name of the company not being associated with bankruptcy and loans and these things,” said Mark LaNeve, GM’s North American marketing chief.

GM ranked as the top global automaker in terms of sales for 77 years before Japan’s Toyota Motor Corp. snatched its crown in 2008. The company sold nearly 8.4 million cars and trucks around the world in 2008, falling short of Toyota’s nearly 9 million.

Once the largest corporation in America, GM held the top spot in the Fortune 500 ranking for 20 years before being pushed out of the top spot in 1973 by Exxon Mobil Corp. It reclaimed No. 1 status in 1985 and held it for another 15 years.

Experts say GM’s future success will depend largely on its ability to persuade consumers that it’s a different company, one that builds cars that will equal or outlast Japanese models. To illustrate the change, GM is considering a new name.

Turning a profit will not be easy. GM lost more than $80 billion in the last four years and survives only because it expects to receive $50 billion in U.S. government loans. Without the loans, its executives have said the company would have been sold off in pieces.

The Obama administration has said it does not plan to interfere with day-to-day operations, though it ousted ex-CEO Rick Wagoner and has been involved in picking the new company’s board.

Most of GM’s model lineup is expected to stay unchanged for now. But the company on Friday will probably show off its newer, more efficient models, as well as plans for a U.S.-made subcompact and rechargeable electric vehicles.

Also on Friday, Henderson is expected to announce that Bob Lutz, GM’s product guru, will remain as a special adviser. Lutz, 77, announced in February that he would retire at year’s end.

In addition to the U.S. government’s controlling interest, the United Auto Workers union gets a 17.5 percent stake of the company through its retiree health care trust, and the Canadian government will control 11.7 percent. The remaining shares went to bondholders of the old company.

The parts of GM not moving to the new company will become part of “old GM,” a collection of assets and liabilities that will be sold to pay creditors.

Almost immediately, GM will try to show how it’s a different company, perhaps by changing its familiar square logo from blue to green, to reflect its environmental focus.

“I think that as a corporate identity the color change could well be a smart move,” said Tony Spaeth, president of Tony Spaeth/Identity, a Rye, N.Y., firm that helps companies craft identities. “It lends a little bit more reality and sincerity of intention to ‘We want to change the way we do things.’”

Today’s consumers are sophisticated and will seek out environmental information to help make shopping choices, said Allen Adamson, managing director at branding firm Landor Associates.

“They have to do this just to stay in the game and to win on that dimension. To win on green, this is a very big challenge,” he said.

Toyota, for instance, is known for its breakthrough hybrid gas-electric technology, and GM could accomplish the same thing with its Chevrolet Volt rechargeable electric car due in showrooms by late 2010.

The S&P 500 index was lower overnight as it extends this week’s decline below the 25% retracement level of the March-June rally crossing at 882.35. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near- term. If September extends this month’s decline, the 38% retracement level of the March-June rally crossing at 845.09 is the next downside target. Multiple closes above the 20-day moving average crossing at 900.54 are needed to confirm that a short-term low has been posted. From a broader perspective, the September S&P index appears to be forming a broad head and shoulders top. Closes below 873.10 would confirm a downside breakout of neckline support thereby opening the door for a possible test of the 38% retracement level of the March-June rally crossing at 845.09. First resistance is the 10-day moving average crossing at 894.20. Second resistance is the 20-day moving average crossing at 900.53. First support is Wednesday’s low crossing at 865.50. Second support is the 38% retracement level of this spring’s rally crossing at 845.09. The September S&P 500 Index was down 6.70 pts. at 872.20 as of 5:59 AM CST. Overnight action sets the stage for a lower opening by the September S&P 500 index when the day session begins later this morning.

The September NASDAQ 100 closed higher due to short covering on Thursday as it consolidated some of this week’s decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If September extends this week’s decline, the 38% retracement level of the March-June rally crossing at 1336.40 is the next downside target. Closes above the 20-day moving average crossing at 1450.18 would temper the near-term bearish outlook in the market.

First resistance is the 20-day moving average crossing at 1450.18. Second resistance is last Wednesday’s high crossing at 1496.25. First support is Wednesday’s low crossing at 1392.50. Second support is the 38% retracement level of the aforementioned rally crossing at 1336.40.

The September S&P 500 index closed higher due to short covering on Thursday as it consolidated some of the week’s decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If September extends this week’s decline, the 38% retracement level of the March-June rally crossing at 845.09 is the next downside target. Closes above the 20-day moving average crossing at 904.08 are needed to confirm that a short-term low has been posted.

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First resistance is the 10-day moving average crossing at 898.60. Second resistance is the 20-day moving average crossing at 904.08. First support is Wednesday’s low crossing at 865.50. Second support is the 38% retracement level crossing at 845.09.

The Dow closed higher on Wednesday due to short covering as it consolidated some of this week’s decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term. If the Dow extends the decline off June’s high, the 38% retracement level of the March-June rally crossing at 7957 is the next downside target. Closes above the 20-day moving average crossing at 8438 are needed to confirm that a short-term low has been posted.

First resistance is the 10-day moving average crossing at 8352. Second resistance is the 20-day moving average crossing at 8438. First support is Wednesday’s low crossing at 8087. Second support is the 38% retracement level of the March-June rally crossing at 7957.