General Motors files for bankruptcy

[philw]

just hope it is going to be ok for down the road @ Elizabeth    they are all ready on one week on one week off  to sustain the jobs


<http://www.news.com.au/business/story/0,27753,25572732-462,00.html>

General Motors files for bankruptcy
Third-largest bankruptcy in US history
Enters an era of government ownership
GENERAL Motors has file for bankruptcy tonight, forcing the 100-year-old car maker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership.

The filing, confirmed by Obama administration officials, is the third-largest in US history and the largest-ever US manufacturing bankruptcy.

The decision to push GM into a fast-track bankruptcy, and provide $30 billion of additional taxpayer funds to restructure the company so it can better compete with lower-cost Asian car makers, is a huge gamble for the Obama presidency.

But the administration saw few other options at a time when the jobless rate is soaring, given that GM employs 92,000 in the United States and is indirectly responsible for 500,000 retirees.

The US industrial icon enters the process with billions in government financing and agreements already in place to cut labor costs, swap much of its debt for equity and reduce its liabilities by 50 percent.

Senior US officials detailed what they hope will be a swift process in which GM should be able to reemerge from bankruptcy protection as a new, leaner company within 60 to 90 days.

Officials said the process is expected to be similar to that of another key auto company Chrysler, which is expected to emerge from bankruptcy protection this week after just over a month.

However, the GM process will not be "as speedy as Chrysler because GM is a far larger, far more complicated global company,'' senior administration officials cautioned.

President Barack Obama was to hold a press conference today  to discuss the state of the automotive industry.

Holden expects no changes to its Australian and New Zealand operations as a result of the financial woes of its American parent company, General Motors.

In a statement, Holden chairman and managing director Mark Reuss said Holden "will continue normal operations in Australia and New Zealand and does not expect changes to its business'' after GM announced it had filed for bankruptcy protection in a deal that will give American taxpayers a 60 per cent ownership stake in the automotive giant.

Holden will remain a part of the GM family, unlike its British Vauxhall and German Opel subsidiaries, Mr Reuss said.

"Operations at Holden are unchanged in Australia and New Zealand, and we expect it to remain that way,'' Mr Reuss said.

"GM has clearly stated that all of its businesses in the Asia Pacific region - and that includes Holden - continue normal operations and are not directly impacted by this process in the US.''

[tt11758]

Now, for the first time in my life, I (and every other Amiercan taxpayer) have purchased stock in a company without having any say about the purchase.  Who the hell do Obama and the congress think they are to determine what investments go into MY portfolio?!?

Is this the "change" we were supposed to be able to believe in?

[Timothy]

Now, for the first time in my life, I (and every other Amiercan taxpayer) have purchased stock in a company without having any say about the purchase.  Who the hell do Obama and the congress think they are to determine what investments go into MY portfolio?!?

Is this the "change" we were supposed to be able to believe in?

Your avatar says it all TT....

[tt11758]

Your avatar says it all TT....

Sad, but true.     

[runstowin]

GM announced it had filed for bankruptcy protection in a deal that will give American taxpayers a 60 per cent ownership stake in the automotive giant.

They've got some splaining to do. I haven't received any stock, no voting rights, nothin.

[Sponsor]

[dj454]

As a former GM dealership employee I hope they can pull out of this mess. If they can't the jobs that will be lost in this country will be staggering. I am glad I got out when I did but I have friends still working for dealers. I left because it got to hard to make a living turning wrenches but I still hate to see them hurting like this. I know they did it to themselves but their quality has really improved since I started at my first dealer. It is hard to overcome a bad reputation. I wish them well I hate to see an American company fail. There has been to much of that lately.

[tombogan03884]

As a former GM dealership employee I hope they can pull out of this mess. If they can't the jobs that will be lost in this country will be staggering. I am glad I got out when I did but I have friends still working for dealers. I left because it got to hard to make a living turning wrenches but I still hate to see them hurting like this. I know they did it to themselves but their quality has really improved since I started at my first dealer. It is hard to overcome a bad reputation. I wish them well I hate to see an American company fail. There has been to much of that lately.

Forget it, an outfit that make money renting women and selling booze is not going to save the Auto industry.