Fallen Giant: GM Files For Bankruptcy
General Motors filed for bankruptcy today, forcing the 100-year-old automaker once seen as a symbol of American economic might into a new and uncertain era of government ownership.
The filing is the third-largest in U.S. history and the largest-ever U.S. manufacturing bankruptcy.
The decision to push GM into a fast-track bankruptcy, and provide $30 billion of additional taxpayer funds to restructure the automaker is a huge gamble for the Obama presidency.
Source: Automotive News
But in a sign of progress in the government’s high-stakes effort, a bankruptcy judge approved the sale of substantially all of U.S. automaker Chrysler’s assets to a group led by Italy’s Fiat S.p.A. in an opinion filed late on Sunday.
Chrysler’s bankruptcy, also financed by the U.S. Treasury, has been widely seen as a test run for the much bigger and more complex reorganization of GM.
President Barack Obama is due to speak on the auto industry shortly before noon Eastern time today. A news conference by GM CEO Fritz Henderson will follow.
GM’s plan as detailed by U.S. officials is for a quick process that would allow a much smaller GM to emerge from court protection within 60 to 90 days.
2 People have left comments on this post
I’d imagine they would do an 11, so if that’s the case, what effects will I feel as a GM Dealership employee? Will the bankruptcy pretty much just wipe away all of the retirement benefits that they are paying out to retiree’s?
Now donot know what will be the impact on Indian model of GM car - Chievrolet Spark. Do they stop supporting this brand from now on ?. Lets wait and watch