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

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Some operations and equipmenty from a steel stamping planft inGrand Rapids, Mich., which is slated to closee as part of the automaker's will be transferred to Wentzville, according to Bob Wheeler, a spokesma n for the Wentzville plant. It's not yet knowj how many, if any, Michigan employees will opt to transfertto Wentzville, he said. GM officials callec Wentzville Mayor Paul Lambi at9 a.m. Monday to assur him the local plantt wouldremain open. "It's good that they are shippinf in work for this Lambi said. "That's a positive that corporated thinks this plant willbe around.
" Lambi said, rival automaker Chrysler plans to shutte r its Fenton factors after investing $130 milliob in them, so it was importany for Wentzville to not rely on GM so much and diversifyg its revenue stream. When Lambi took officw seven years ago, Wentzville counted on GM for abour 55 to 60 percent of itstotal revenue. Today, that's more like 15 percenty of the city's $24 million general fund, becausde GM pays the city about $3 millionh a year in real estatse taxes, property taxes and other fees, he GM on Monday by the end of but the Wentzville plant was sparedbecause it’s the only plany where Chevrolet Express and GMC Savan a vans are made, The Wentzville plant will still undergoo a previously announced and other productio cuts in June and July that will resulgt in the layoffs of 300 Monday’s Chapter 11 filing by the 101-year-old automaked is among the largest in U.
S. histort and largest-ever U.S. manufacturing bankruptcy. GM listed $173 billiobn in liabilities and $82 billion in assets, according to the filexd in New York. GM to St. largest privately held Enterprise Rent-a-Car, and to Chapter 11, which allows the company to operate whilwe protected fromits creditors, pushees GM into a fast-track bankruptcy and provides $30 billiom of additional taxpayer funds to restructure. The GM plan as detailed by U.S. officialsw would allow a much smallerr GM to emerge from court protection withij 60 to90 days. The automakedr has not provided an updatesd target for job cuts but was lookinb toeliminate 21,000 U.S.
factory jobs from the 54,00 0 union members it now employs. General Motors employs 92,000 in the United Statew and is indirectly responsiblefor 500,000o retirees. The U.S. government would hold a 60 percent financia interest in areorganized GM, and the UAW woul take a 17.5 percent stake. The governmentsd of Canada and the provincre of Ontario have agreed to a 12 percent ownership stakee in exchange forfinancial aid. GM bondholders woulx get 10 percent. "It’s a bittersweet Wheeler said.
"You hate to have to go throug the process of closing plantsz andeliminating jobs, but look that’s what's going on with a lot of Hopefully we can rebound, hire people in the futured and be the vibrant compant we once were." Download a copy of the