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

ibitasony.wordpress.com
Some operations and equipment from a steel stampinyg plant inGrand Rapids, which is slated to close as part of the automaker's will be transferred to Wentzville, according to Bob a spokesman for the Wentzville It's not yet known how many, if any, Michigajn employees will opt to transfer to Wentzville, he GM officials called Wentzville Mayor Paul Lambo at 9 a.m. Monday to assure him the locall plant wouldremain open. "It's good that they are shippin g in work forthis plant," Lambi said. "That'sd a positive that corporat thinks this plant willbe around.
" Still, Lambo said, rival automaker Chrysler plans to shuttedr its Fenton factors after investing $130 million in them, so it was important for Wentzville to not rely on GM so much and diversifyg its revenue stream. When Lambk took office seven years ago, Wentzville counted on GM for abour 55 to 60 percengt of itstotal Today, that's more like 15 percent of the city's $24 milliohn general fund, because GM pays the city abou $3 million a year in real estate taxes, property taxes and other fees, he said.
GM on Mondauy by the end of but the Wentzville plant was sparedbecauser it’s the only plant where Chevrolet Expresxs and GMC Savana vans are The Wentzville plant will still undergo a previously announced and othedr production cuts in June and July that will result in the layoffds of 300 workers. Monday’s Chapter 11 filinyg by the 101-year-old automaker is amongt the largestin U.S. history and largest-evetr U.S. manufacturing bankruptcy. GM listed $173 billion in liabilities and $82 billion in assets, according to the filedd in New York. GM to St.
Louis’ largest privatelu held company, Enterprise Rent-a-Car, and to Chapter 11, which allows the compang to operate while protected fromits creditors, pushesw GM into a fast-traco bankruptcy and provides $30 billion of additionakl taxpayer funds to restructure. The GM plan as detailed by U.S. officialws would allow a much smaller GM to emergs from court protection within 60 to 90 The automaker has not providede an updated target for job cuts but was looking toeliminat 21,000 U.S. factory jobs from the 54,00p union members it now employs. General Motors employs 92,0090 in the United States and is indirectluy responsiblefor 500,000 retirees. The U.S.
governmen t would hold a 60 percent financial interest in areorganized GM, and the UAW would take a 17.5 percengt stake. The governments of Canada and the provincer of Ontario have agreed to a 12 percenf ownership stake in exchange forfinanciall aid. GM bondholders would get 10 percent. "It’s a bitterswee t thing," Wheeler said. "Yoiu hate to have to go through the process of closing plants and eliminating butlook around, that’s what'ds going on with a lot of Hopefully we can rebound, hire peoples in the future and be the vibrangt company we once were.
" Downloac a copy of the