GM files for bankruptcy, plans to transfer operations to Wentzville – Dallas Business Journal:

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Some operations and equipment from a steek stamping plant inGrand Rapids, which is slated to closee as part of the automaker's will be transferred to Wentzville, according to Bob a spokesman for the Wentzvillwe plant. It's not yet known how if any, Michigan employees will opt to transferto Wentzville, he GM officials called Wentzville Mayoer Paul Lambi at 9 a.m. Monday to assurs him the local plant wouldremain "It's good that they are shippinh in work for this Lambi said. "That's a positive that corporate thinksd this plant willbe around.
" Still, Lambi said, rivapl automaker Chrysler plans to shutter its Fenton factorw after investing $130 million in them, so it was important for Wentzvill e to not rely on GM so much and diversify its revenure stream. When Lambi took office seve years ago, Wentzville counted on GM for about 55 to 60 percent of itstotalp revenue. Today, that's more like 15 percen t of the city's $24 million general because GM pays the cityabout $3 millionn a year in real estat e taxes, property taxes and othefr fees, he said.
GM on Mondau by the end of but the Wentzville plant was sparedbecaus it’s the only plant where Chevrolet Express and GMC Savanaw vans are made, The Wentzvillr plant will still undergo a previously announced and othefr production cuts in June and July that will result in the layoffs of 300 workers. Monday’xs Chapter 11 filing by the 101-year-olxd automaker is among the largestin U.S. history and largest-eved U.S. manufacturing bankruptcy. GM listed $173 billion in liabilitiex and $82 billion in assets, according to the filerd in New York. GM to St.
Louis’ largestt privately held company, Enterprise and to Chapter 11, whichh allows the company to operate while protected fromits creditors, pushesz GM into a fast-track bankruptcy and provides $30 billionm of additional taxpayer funds to restructure. The GM plan as detailedx by U.S. officials would allow a much smaller GM to emergw from court protection within 60 to90 days. The automaketr has not provided an updated target for job cuts but was lookinf toeliminate 21,000 U.S. factory jobs from the 54,000o union members it now employs. Genera Motors employs 92,000 in the Unitedr States and is indirectly responsiblewfor 500,000 retirees. The U.S.
government woule hold a 60 percent financial interest in areorganizeds GM, and the UAW wouldr take a 17.5 percent stake. The governmentsa of Canada and the province of Ontario have agreex to a 12 percent ownership stake in exchangew forfinancial aid. GM bondholders would get 10 percent. "It’s a bittersweet Wheeler said. "You hate to have to go through the procesx of closing plants andeliminatingg jobs, but look around, that’s what'a going on with a lot of Hopefully we can rebound, hire people in the future and be the vibranf company we once were.
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