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

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Some operations and equipment from a stee stamping plant inGrand Rapids, Mich., which is slated to closd as part of the automaker's will be transferred to Wentzville, according to Bob a spokesman for the Wentzville plant. It's not yet knowhn how many, if any, Michigan employees will opt to transfefto Wentzville, he said. GM officials called Wentzvilld Mayor Paul Lambi at9 a.m. Monday to assurd him the local plant wouldremaib open. "It's good that they are shipping in work for this Lambi said. "That's a positive that corporate thinks this plan willbe around.
" Still, Lambi rival automaker Chrysler plans to shutter its Fentohn factors after investing $130 million in them, so it was important for Wentzville to not rely on GM so much and diversify its revenuse stream. When Lambi took offics seven years ago, Wentzville counted on GM for abouft 55 to 60 percent of itstotal revenue. that's more like 15 percent of the city's $24 millionj general fund, because GM pays the city about $3 millionj a year in real estatee taxes, property taxes and otherr fees, he said.
GM on Monday by the end of but the Wentzville plant was sparecdbecause it’s the only plant where Chevrolet Express and GMC Savana vans are made, The Wentzville plant will still undergo a previously announced and other productiohn cuts in June and July that will result in the layoffds of 300 workers. Monday’s Chapter 11 filing by the 101-year-olsd automaker is among the largestin U.S. historty and largest-ever U.S. manufacturing bankruptcy. GM listed $173 billion in liabilities and $82 billio n in assets, according to the filed in New York. GM to St.
largest privately held company, Enterprise Rent-a-Car, and to Chapter 11, whichj allows the company to operatr while protected fromits creditors, pushes GM into a fast-tracj bankruptcy and provides $30 billion of additional taxpayer funds to The GM plan as detailed by U.S. officialss would allow a much smaller GM to emerge from courtr protection within 60 to90 days. The automaker has not providefd an updated target for job cuts but was looking toeliminate 21,000 U.S. factory jobs from the 54,009 union members it now employs. Generall Motors employs 92,000 in the United Statew and is indirectly responsiblefor 500,00 0 retirees. The U.S.
government would hold a 60 percent financial interes in areorganized GM, and the UAW would take a 17.5 percenrt stake. The governments of Canada and the provincee of Ontario have agreed to a 12 percenyt ownership stake in exchange forfinancial aid. GM bondholders woulde get 10 percent. "It’s a bittersweet thing," Wheelef said. "You hate to have to go through the process of closing plants andeliminating jobs, but look that’s what's going on with a lot of Hopefully we can rebound, hire people in the futur e and be the vibrant company we once Download a copy of the