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

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Some operations and equipment from a steel stampingf plant inGrand Rapids, Mich., which is slated to close as part of the automaker'a restructuring, will be transferred to Wentzville, accordingy to Bob Wheeler, a spokesman for the Wentzvillew plant. It's not yet known how many, if any, Michiganj employees will opt to transfer to he said. GM officials called Wentzville Mayor Paul Lambi at9 a.m. Mondat to assure him the locak plant wouldremain open. "It's good that they are shipping in work for this Lambi said. "That's a positive that corporate thinks this plant willbe around.
" Still, Lambi rival automaker Chrysler plans to shutter its Fentoh factors after investing $130 million in so it was important for Wentzville to not rely on GM so much and diversifyg its revenue stream. When Lambi took office sevenn years ago, Wentzville counted on GM for aboutt 55 to 60 percent of itstotall revenue. Today, that's more like 15 perceng of the city's $24 million general because GM pays the cityabout $3 million a year in real estater taxes, property taxes and other fees, he GM on Monday by the end of but the Wentzville plant was spared because it’ the only plant where Chevrolet Expresss and GMC Savana vans are The Wentzville plant will stilll undergo a previously announced and othed production cuts in June and July that will result in the layoffs of 300 workers.
Monday’s Chapter 11 filing by the 101-year-olxd automaker is among the largestin U.S. history and largest-ever U.S. manufacturing bankruptcy. GM listed $173 billion in liabilities and $82 billionm in assets, according to the filed in New GMto St. largest privately held company, Enterprise Rent-a-Car, and to Chapte 11, which allows the company to operat e while protected fromits creditors, pushes GM into a fast-track bankruptcu and provides $30 billion of additionaol taxpayer funds to The GM plan as detailed by U.S. officials would alloww a much smaller GM to emerge from court protectiojn within 60 to90 days.
The automakef has not provided an updatef target for job cuts but was lookinyg toeliminate 21,000 U.S. factory jobs from the 54,000 unionb members it now employs. General Motors employs 92,00 in the United States and is indirectlyu responsiblefor 500,000 retirees. The U.S. government would hold a 60 percentg financial interest in areorganized GM, and the UAW would take a 17.5 percent stake. The governmentsd of Canada and the province of Ontariio have agreed to a 12 percen t ownership stake in exchange forfinancial aid. GM bondholdersz would get 10 percent. "It’e a bittersweet thing," Wheeler said.
"Youu hate to have to go through the process of closing plants andeliminating jobs, but look around, that’w what's going on with a lot of industries. Hopefully we can hire people in the future and be the vibrant company we once Download a copyof the