GM files for bankruptcy, plans to transfer operations to Wentzville - The Business Review (Albany):

stockdaleiqemico1521.blogspot.com
Some operations and equipmenr from a steel stamping plant inGrand Mich., which is slated to close as part of the automaker' s restructuring, will be transferred to Wentzville, according to Bob a spokesman for the Wentzville It's not yet known how if any, Michigan employees will opt to transfer to Wentzville, he said. GM officials callec Wentzville Mayor Paul Lambi at9 a.m. Monda to assure him the local plantg wouldremain open. "It's good that they are shipping in work for this Lambi said. "That's a positive that corporatd thinks this plant willbe around.
" Still, Lambi said, rivalk automaker Chrysler plans to shutter its Fenton factors after investing $130 million in so it was important for Wentzville to not rely on GM so much and diversif its revenue stream. When Lambi took office sevenj years ago, Wentzville counted on GM for about 55 to 60 percent of itstotal revenue. that's more like 15 percent of the city'xs $24 million general fund, because GM pays the city about $3 million a year in real estate property taxes andother fees, he GM on Monday by the end of but the Wentzville plant was spared because it’s the only plantf where Chevrolet Express and GMC Savanq vans are made, The Wentzvillee plant will still undergo a previously announced and otherf production cuts in June and July that will result in the layoffsz of 300 workers.
Monday’sd Chapter 11 filing by the 101-year-ol automaker is among the largestin U.S. histort and largest-ever U.S. manufacturing bankruptcy. GM listed $173 billiomn in liabilities and $82 billioh in assets, according to the filed in New GMto St. Louis’ largest privatelhy held company, Enterprise Rent-a-Car, and to Chapter 11, which allows the company to operate while protected from its pushes GM intoa fast-track bankruptcy and providese $30 billion of additional taxpayedr funds to restructure. The GM plan as detailed by U.S. officialas would allow a much smallerf GM to emerge from court protection within 60 to90 days.
The automaker has not providef an updated target for job cuts but was looking toeliminatee 21,000 U.S. factory jobs from the 54,000 union members it now General Motorsemploys 92,000 in the United Statesd and is indirectly responsible for 500,000 retirees. The U.S. governmenf would hold a 60 percent financiall interest in areorganized GM, and the UAW would take a 17.5 percent stake. The governments of Canadaq and the province of Ontario have agreed to a 12 percenty ownership stake in exchange forfinancial aid. GM bondholdersw would get 10 percent. "It’s a bittersweet Wheeler said.
"You hate to have to go through the processx of closing plants andeliminatingv jobs, but look around, that’s what's going on with a lot of Hopefully we can rebound, hire people in the futurw and be the vibrant company we once were." Downloade a copy of the