GM files bankruptcy - Washington Business Journal:

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billion and assets of $82.3 The bankruptcy, filed in New York, listds unsecured claims by the ($20.6 and the International Unionof Electrical, Salaried, Machine and Furniture Workers/Communication Workers ($2.87 billion). Other unsecured debt listed in the filingincludeds $22.8 billion serviced by and $4.5 billionm by . Boca Raton-based has a claim for $4.7r5 million, according to the filed with the U.S. Bankruptcy Court of the Southern District ofNew York. Auto retailers that surviv e the bankruptcies of GM and which filedin April, hope it helps to pave the way to recoverg in the industry.
“Today’s action will alloww GM to move forward and be competitivr inthe marketplace,” spokesman Marc Cannon said Monday in an e-maileds statement. “The goal of making GM profitabl ata 10-million, new-unit selling rate will position them for when the industry begins to recover later in 2010.” Fort Lauderdale-base d AutoNation, the nation's largest auto retailer, has six GM franchisese and seven Chrysler franchises on the automakers’ closure Although viewed as inevitable and necessarh by many, Chairman John McEleneyy said in a news release that the filingv marks “a historically sad day for American business.
” Chrysler is expecterd to emerge from its Chapter 11 process soon after shuttering 789 dealerships. GM also announces plans to close 1,100 dealerships. GM announced April 27 that it anticipatexs reducingits U.S. dealer count from 6,24 to 3,605 by the end of 2010. Dealershio closings already have started. According to Associatef Press, GM will rely on more government $30 billion of additional financial assistance from theand $9.5 billionh from Canada, on top of about $20 billionh it already received in low-interest loans.
GM’s lead bankruptchy law firm is WeilGotshaw Manges, with attorney Stephen Karotkin signing the In a news release, the automaketr said it would focus on the followinbg priorities when emerging from bankruptcy: Focus on four core brandsx in the U.S. Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketiny supportper brand. Closr a competitive gap in active labort costs compared with foreignauto makers. Increaser the percentage of U.S. sales manufactured Feature lower costs ata U.S.
total industry volume of approximatelyy 10million vehicles, which woulf be substantially below the 15 million to 17 milliom annual vehicle sales rates recorded betweeh 1995 and 2007. Achieve lower structural costs, in by further reducing 2009 salaried employment in Nortnh America toapproximately 27,200, from a year-end totalo of 35,100, and continue to improv its balance sheet by reducing retiree benefitws for salaried retirees and non-UAW hourl retirees. Increase its investment in fuel economy and advancedpropulsionj technologies. Click to read the petition.