GM Files For Bankruptcy

At 11:55 a.m. EDT today President Barack Obama will announce the government's plan for the future of GM. The company filed for bankruptcy Chapter 11 protection this morning in a New York court. The government will pledge $30 billion in additional funds to support the company during the bankruptcy protection and will likely continue its backing of new car warranties. We'll have more on the bankruptcy throughout the day including what products will likely be impacted.

GM's Board of Directors official statement regarding the bankruptcy filing is posted below.

Attributable to Kent Kresa, Chairman:

“The General Motors Board of Directors authorized the filing of a chapter 11 case with regret that this path proved necessary despite the best efforts of so many. Today marks a new beginning for General Motors. A court-supervised process and transfer of assets will enable a New GM to emerge as a stronger, healthier, more focused and nimbler company with a determination not to just survive but to excel. The Board concluded that the proposed transformation will maximize the value of the enterprise, and the return to the many stakeholders who have been involved with GM over the years.

We are appreciative of the support from the U.S. Treasury, the President’s Task Force on Autos, the UAW and its members, salaried employees and retirees, concurring bondholders, and very importantly, the American taxpayers. The Board is confident that this New GM can operate successfully in the intensely competitive U.S. market and around the world. The Board stands behind the people of GM in embracing this unique opportunity to create value and a new company that will design, engineer, build and market the best cars and trucks in world.”

Comments 

Insider

A Bankruptcy was inevitable. Even though GM went down, they will re-emerge as a stronger brand as a whole. Personally, Chevrolet; Buick; and Cadillac should be brands welcomed back, but the brand GMC can find its home six feet under. GMC trucks can easly be outsold using the Chevrolet brand and Cadillac brand. There is no reason for Rebadging. Rebadging is another reason why almost half of GM is gone. How many differnt version do they really need of the GM LMBDA PLATFORM?

GM can emerge strong from this but they really should have kept themselves in check, they grew way too large for their own good and it came back to bite them. Looks like greed got the best of them.

And I agree, GMC should also go, if GM's serious about becoming a smaller yet stronger and more profitable company.

GMC is still one of GM's most profitable brands. Not smart to get rid of anything that makes you money.

Also on the small cars being built in the U.S.: NO automaker makes subcompacts in the U.S. because of cost. That includes Toyota, Honda and Hyundai. BMW doesn't even build the Mini here, one of its biggest markets.

alex

I know this is harsh, but I think its a joke Gm and Chrysler for taking government mooney. I know the economy is tough, but they have been mismanaged well before this. I would only buy Ford now if I ever bought American in my life.

YOING

I will continue to show my strong support for the GM bailout by NOT buying their product.

Nic

This makes me sick. I would never buy from this crooked business. The ones making millions per year should be the ones who pay. Because what happens to the pensions for the ones who worked their butts off for years? It's all gone in the wind. GM and Chrysler should burn in hell.

Your mother

It does not matter how "profitable" a brand is for GM. If they do not know how to save and manage the money they make then it's a lost cause.

Al G.

I saw this day coming. To bad! I agree with the fact GM got to big. When the economy was strong they could get by but in today’s economic climate coupled with rising fuel prices people things are different.

GM going chapter 11 will probably minimally impact the top exec's. It’s the little people who will pay for this. As GM restructures probably the retirees will probably get their pensions slashed and their medical aid reduced. Not to mention more folks loosing their jobs.

Also I expect the existing lines (Buick, Chevy, and Cadillac, GMC) will have some models reduced. Can GM emerge stronger? On the news today Obama says they will. I guess time will tell. Hopefully GM has learned from past mistakes. GM recently has come out with some cars that show real good potential. Hopefully these are the cars they build on and improve. Given the GM bashing I’ve read on these blogs and from friends. GM will need to work doubly hard to change it's image.

Tony

Even Russians are laughing at our brand of capitalism.

Jaxon

An end of an era for sure. Too bad we couldn't have ended it last September before dumping billions of our dollars into this obvious black hole this was then and now before power-hungry politicians got a hold of this. Too bad taxpayers will now be subsidizing crappy cars produced by our friendly Government Motors for years to come through tax subsidies and GM consumer tax credits. Too bad we the people have allowed our elitist leaders in D.C. to run over us, our liberties, and our freedoms the last several years (Bush) and months (Obama). An end of an era to be sure.

At least liquidation deals abound. Sigh. http://tinyurl.com/nv9oun

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