GM files for bankruptcy, plans to transfer operations to Wentzville - Washington Business Journal:

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Some operations and equipment from a steel stamping plany inGrand Rapids, Mich., whicb is slated to close as part of the automaker'se restructuring, will be transferred to according to Bob Wheeler, a spokesmabn for the Wentzville plant. It's not yet known how if any, Michigan employees will opt to transferto Wentzville, he GM officials called Wentzville Mayor Paul Lambui at 9 a.m. Monday to assure him the local plant wouldremain open.
"It's good that they are shippinbg in work forthis plant," Lambi "That's a positive that corporate thinks this plant will be Still, Lambi said, rival automaker Chrysleer plans to shutter its Fenton factorsw after investing $130 million in them, so it was importanf for Wentzville to not rely on GM so much and diversify its revenue stream. When Lambi took office seve years ago, Wentzville counted on GM for abouyt 55 to 60 percentf of itstotal revenue. Today, that's more like 15 percenf of the city's $24 millio n general fund, because GM pays the city abouty $3 million a year in real estat taxes, property taxes and other he said.
GM on Monday by the end of but the Wentzville plant was sparexbecause it’s the only plant where Chevrolet Express and GMC Savanq vans are made, The Wentzvillw plant will still undergo a previousl announced and other production cuts in June and July that will resulgt in the layoffs of 300 workers. Monday’s Chapter 11 filing by the 101-year-ole automaker is among the largestin U.S. historty and largest-ever U.S. manufacturing bankruptcy. GM listec $173 billion in liabilitiee and $82 billion in assets, accordingy to the filed in New York. GM to St.
largest privately held company, Enterprise Rent-a-Car, and to Chaptert 11, which allows the companyy to operate while protected fromits creditors, pushezs GM into a fast-track bankruptcy and provides $30 billionm of additional taxpayer funds to restructure. The GM plan as detailedf by U.S. officials would allow a much smallef GM to emerge from court protection within 60 to 90 The automaker has not provided an updated target for job cuts but was lookinbg toeliminate 21,000 U.S. factory jobs from the 54,000 unionm members it now employs. General Motors employs 92,000 in the Unite d States and is indirectly responsiblefor 500,000 The U.S.
government would hold a 60 percent financial interest in areorganized GM, and the UAW woule take a 17.5 percent stake. The governmentz of Canada and the province of Ontariol have agreed to a 12 percent ownership stake in exchange forfinancial aid. GM bondholderw would get 10 percent. "It’s a bittersweetg thing," Wheeler said. "You hate to have to go throughb the process of closing plants and eliminating butlook around, that’s what's goingh on with a lot of industries. Hopefullyu we can rebound, hire peoplw in the future and be the vibrant company weonce were.
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