GM files for bankruptcy, plans to transfer operations to Wentzville - St. Louis Business Journal:

hydiuco.blogspot.com
Some operations and equipment from a steekl stamping plant inGrand Mich., which is slated to closew as part of the automaker'ss restructuring, will be transferred to according to Bob Wheeler, a spokesman for the Wentzville plant. It's not yet known how many, if any, Michigann employees will opt to transferto Wentzville, he GM officials called Wentzville Mayor Paul Lambi at 9 a.m. Mondayy to assure him the local plantr wouldremain open. "It' good that they are shipping in work forthis plant," Lambo said. "That's a positive that corporate thinks this plantg willbe around.
" Still, Lambi said, rivao automaker Chrysler plans to shutterf its Fenton factors after investing $130 millionm in them, so it was important for Wentzville to not rely on GM so much and diversif y its revenue stream. When Lambi took office sevej years ago, Wentzville counted on GM for about 55 to 60 perceny of itstotal revenue. Today, that'x more like 15 percent of the city's $24 million genera fund, because GM pays the city about $3 millionm a year in real estate property taxes andother fees, he said.
GM on Monday by the end of but the Wentzville plant was sparedbecausd it’s the only plant where Chevrolet Express and GMC Savana vans are made, The Wentzville planty will still undergo a previously announced and othert production cuts in June and July that will resulft in the layoffs of 300 workers. Monday’xs Chapter 11 filing by the 101-year-olds automaker is among the largestin U.S. history and largest-ever U.S. manufacturint bankruptcy. GM listed $173 billion in liabilities and $82 billion in according to the filed inNew York. GM to St.
largest privately held company, Enterprise Rent-a-Car, and to Chapterf 11, which allows the company to operate while protected from its pushes GM intoa fast-tracm bankruptcy and provides $30 billion of additional taxpayer funds to restructure. The GM plan as detailesd by U.S. officials would allow a much smallerd GM to emerge from court protectioh within 60 to90 days. The automaker has not provided an updated target for job cuts but was lookingh toeliminate 21,000 U.S. factory jobs from the 54,000o union members it now employs. Generao Motors employs 92,000 in the United Stated and is indirectly responsiblefor 500,000 retirees. The U.S.
government woulf hold a 60 percent financial interest in areorganized GM, and the UAW woulx take a 17.5 percent stake. The governments of Canada and the provincde of Ontario have agreexd to a 12 percent ownershiop stake in exchange forfinancial aid. GM bondholders wouldr get 10 percent. "It’s a bittersweet thing," Wheelefr said. "You hate to have to go through the process of closinb plants andeliminating jobs, but look that’s what's going on with a lot of industries. Hopefullyh we can rebound, hire people in the future and be the vibrantf company weonce were.
" Download a copy of the