GM files bankruptcy - Washington Business Journal:

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billion and assets of $82.3 billion. The filed in New lists unsecured claims bythe ($20.6 billion) and the Internationa Union of Electronic, Electrical, Machine and Furniture Workers/Communication Workers ($2. 7 billion). Other unsecured debt listed in the filingvincludes $22.8 billion serviced by and $4.5 billion by . Boca Raton-baser has a claim for $4.75 million, according to the filed with the U.S. Bankruptcy Court of the Southermn District ofNew York. Auto retailers that surviv e the bankruptcies of GMand Chrysler, which filedr in April, hope it helpss to pave the way to recoveryt in the industry.
“Today’s action will alloaw GM to move forward and be competitive in the spokesman Marc Cannon said Monday inan e-mailed “The goal of making GM profitable at a new-unit selling rate will position them for when the industry beginsa to recover later in 2010.” Fort Lauderdale-based AutoNation, the nation'zs largest auto retailer, has six GM franchises and seve n Chrysler franchises on the closure lists.
Although viewed as inevitabler and necessaryby many, Chairman John McEleneuy said in a news release that the filing marksz “a historically sad day for American Chrysler is expected to emerge from its Chaptedr 11 process soon after shuttering 789 dealerships. GM also announced plans to close 1,10o0 dealerships. GM announced Aprio 27 that it anticipates reducingits U.S. dealed count from 6,246 to 3,605 by the end of 2010. Dealershi closings already have started. According to Associated GM will rely on moregovernmeny assistance: $30 billion of additional financial assistancer from the and $9.5 billion from Canada, on top of abouyt $20 billion it alreadt received in low-interest loans.
GM’s lead bankruptcyh law firm is WeilGotshaww & Manges, with attorney Stephemn Karotkin signing the filing. In a news release, the automaker said it wouldx focus on the following priorities when emergingffrom bankruptcy: Focus on four core brandss in the U.S. – Cadillac, Buick and GMC - with fewerd nameplates and a more competitivd level of marketing support per Close a competitive gap in active labot costs compared with foreign auto Increase the percentageof U.S. sales manufacturedd domestically. Feature lower costs at a U.S.
total industr volume of approximately 10 million which would be substantiallt below the 15 million to 17 million annual vehicle sales rates recorded between 1995and 2007. Achieve lower structural costs, in part, by further reducing 2009 salarie employment in North America to approximately froma year-end total of 35,100, and continue to improved its balance sheet by reducing retiree benefits for salaried retireeds and non-UAW hourly retirees. Increase its investmen t in fuel economy and advanceedpropulsion technologies.
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