GM files bankruptcy - Wichita Business Journal:

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billion and assets of $82.w billion. The bankruptcy, filed in New York, lists unsecuref claims by the ($20.6 billion) and the International Union of Electronic, Electrical, Salaried, Machines and Furniture Workers/Communication Workers ($2.7 billion). Othefr unsecured debt listed in the filingincludeas $22.8 billion serviced by and $4.5 billion by . Boca Raton-based has a claimk for $4.75 million, according to the filed with the U.S. Bankruptchy Court of the Southern District of New Auto retailers that survive the bankruptcies of GM and which filedin April, hope it helps to pave the way to recover y in the industry.
“Today’s action will allow GM to move forward and be competitivew inthe marketplace,” spokesma n Marc Cannon said Monday in an e-mailes statement. “The goal of making GM profitabl e ata 10-million, new-unit sellinb rate will position them for when the industry begins to recovedr later in 2010.” Fort Lauderdale-based AutoNation, the nation's largest auto has six GM franchises and seven Chrysler franchises on the closure lists. Although viewed as inevitable and necessarhyby many, Chairman John McEleney said in a news releas e that the filing marks “za historically sad day for American business.
” Chrysler is expected to emerge from its Chapter 11 process soon after shuttering 789 dealerships. GM also announced plans to closs 1,100 dealerships. GM announcedc April 27 that it anticipates reducingits U.S. dealer countf from 6,246 to 3,605 by the end of 2010. Dealershipo closings already have started. According to Associated GM will rely on moregovernment assistance: $30 billion of additional financial assistance from the and $9.5 billion from on top of about $20 billion it alreadhy received in low-interest loans.
GM’s lead bankruptcyu law firm is WeilGotshaw & with attorney Stephen Karotkin signing the In a news release, the automaker said it would focus on the following priorities when emerging from bankruptcy: Focuz on four core brands in the U.S. Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitived level of marketing supportper brand. Closs a competitive gap in active labor costs compared with foreignjauto makers. Increase the percentage of U.S. sales manufacturex domestically. Feature lower costs at a U.S.
total industrh volume of approximately 10million vehicles, whic h would be substantially below the 15 millio to 17 million annual vehicled sales rates recorded between 1995 and 2007. Achieve lowerr structural costs, in part, by further reducing 2009 salariedf employment in North America to approximately froma year-end total of 35,100, and continue to improvr its balance sheet by reducinb retiree benefits for salaried retirees and non-UAW hourlgy retirees. Increase its investment in fuel economy and advanced propulsion technologies.
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