• Jun 1st 2009 at 9:26AM
  • 39
The die is cast: General Motors has filed for bankruptcy. As expected, the automotive giant filed for Chapter 11 bankruptcy protection this morning in a New York court, listing $82 billion in assets and $172 billion in debts.

As we told you earlier, the century-old company will gain extensive assistance from the U.S. government, the former chipping in $30 billion in financing (GM has already received over $19 billion), that latter of which is expected to work extensively with the automaker as it goes through bankruptcy proceedings that will see the company's assets split into "Good GM" and "Bad GM," the latter of which will be liquidated.

According to the Detroit Free Press, the Obama administration has said that it will manage its holdings in GM (the government gets a 60% stake) in a "hands-off" non-interference fashion, with no White House employees serving on the board or being employed by the automaker. However, Capitol Hill will get the chance to influence company proceedings, as it will vote on core issues of governance that include "selecting the company's board of directors and major corporate transactions." While that may not equate to day-to-day management decisions, the government will certainly have the ability to influence company plans through appointments and such decision-making processes.

You can read more about the filing and the ramifications at the link below.

[Source: Detroit Free Press | Image: Michael Heiman/Getty]

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    • 1 Second Ago
      • 6 Years Ago
      Sucks. Has to happen but it doesn't make it any easier. Lots of people are going to be hurt by this. I hope they can bounce back and come back right. They have made some bad decisions over the years, but now they have a chance to right the ship.

      I support you GM.
        • 6 Years Ago
        Hope GM will begin anew building cars to be desired (like they in the years leading up to 1972).
        • 6 Years Ago
        To all the Chicken Little "Sky is Falling" People.

        It was a lot easier that everyone thought. Obama and his task force handle this masterfully. Henderson and his new management team seem competent. A New GM will emerge.

        Hope GM can turn it around. GM produced 450 million vehicles over the past 101 years--most people have a story to tell growing up in and then driving their vehicles. Let's hope those stories moving forward are positive ones, instead of the horror stories or poor quality, crappy service, etc.
        • 6 Years Ago
        @ TyWright

        Cause yeah GM has had lots of entrepreneurial spirit over the past couple of decades. Maybe they can finally strip some of the fat off and be a bit more nimble in the marketplace after this Bankruptcy.
      • 6 Years Ago
      It is a shame but we all knew this was going to happen. Give the company some taxpayer money to help them, but the money is never going to help them sell more cars or trucks since it is paying debt and payroll. The taxpayer still doesnt have anymore money to buy a car or truck so the company is still not selling any products. Give the taxpayer some money but tell them to get it they have to purchase a new car with it and pay off any debt and now each taxpayer has new car and paying their bills. But who am I to say whta would ahve been better...........

      • 6 Years Ago
      "...However, Capitol Hill will get the chance to influence company proceedings..."

      I guess that means the 2012 Pelosi GTxi SS/RT Sport Edition will actually get a shot at production, probably in Flint.

      Oh joy!
      • 6 Years Ago
      Boy, you guys are really late, i knew about this since about 2000's, when Wagoner took over.
        • 6 Years Ago
        you must be really wealthy guy due the shorting on GM :)
        • 6 Years Ago
        Hey Urch, do you think you'll ever get over your obsession with Rick Wagoner?
        • 6 Years Ago
        Seeing as he ruined GM all the while having the utmost support of the board of bystanders and the fanboys in here, and getting $20 Mil Golden parachute on top of making $17+ million dollars a year while flying a corporate jet ……………………………..Probably not.
        • 6 Years Ago
        The problems GM faces took several decades to create. Not acknowledging that prettymuch speaks for itself.
      • 6 Years Ago
      This is bad . this is only happening because they wont let us sell any of out products to China . this is only the begining on what the chinese on doing to us, a begining to another Depression !! . recently some of the hummer plants are going up for sale . the chinese say they are proud to continune the name because its a power full vehicle . but many people say why do the chinese want a gas guzzler . they also so its unprofitable , maybe it is maybe it isn't but the 110% truth is it hurts us . the anwser is they want to buy US !!! . they want to own all of companies so they control our economy so they can control us. (This is what i believe)
      • 6 Years Ago
      "According to the Detroit Free Press, the Obama administration has said that it will manage its holdings in GM (the government gets a 60% stake) in a "hands-off" non-interference fashion, with no White House employees serving on the board or being employed by the automaker."

      True, but with 6 borad members approved by the PTFOA and 1 from the union that's 7 out of 13 board members for the "new" GM. Guess who has the most votes?
        • 6 Years Ago
        I don't think the UAW board member gets a vote but I might be wrong.
      • 6 Years Ago
      I wonder if Senator Corker will be a pain in the ass again in these proceedings?
      • 6 Years Ago
      • 6 Years Ago
      you know, I think this is going to get interesting. I'm curious to know what the government has in store for this company, and what they think the general public would like to drive. Let's just hope that the next generation of cars are more reliable than our political system.


        • 6 Years Ago
        The problem with GM and US manufacturers is the lack of exports.

        I live in a small caribbean island and I can buy and Japanese Korean or German car, and a few Chinese.

        How can you expect to support a whole industry based mainly on domestic consumption? My island mainly attracts tourists (foreign exchange) and we export sugar to Europe (more foreign exchange).

        The fact that GM is not a real global company nor is Chrysler then in the age of globalization business will fail.

        I even work for a small company and we have client in Central and south America.

        Make your products global and maybe you will succeed.

      • 6 Years Ago
      Most fans seen it coming a long time ago. As much money as they pumped into Pontiac and Buick, it's ashame to see Pontiac go. I'm going to miss The Pontiac Game Changing Perfomance in College Football.
        • 6 Years Ago
        My new line up for Pontiac would be:
        Fiero to replace the G3 with a focus on low-e maybe the first all electric in its class,
        keep the G6 great car,
        rename the G8 the Grand Prix,
        keep the Soltice,
        bring back the Firebird,
        Keep the Torrent but make it a small truck like the Canyon or Colorado with more utility and sport options.
        By the way the Aztek was a great car, maybe before it's time.
        • 6 Years Ago
        Yeah I really hope Pontiac comes back to resurrect classics like the G3, G5, G6, Grand Am, Montana, Aztec, Sunbird, Sunfire, 6000, front drive Bonneville, front drive Grand Prix, and Lemans (Daewoo). Wow those were some high performance beasts:)
        • 6 Years Ago
        Um, I'm pretty sure the Game Changing Performance will still exist... and some other company will throw their money around to whore their name all over it.
        • 6 Years Ago
        Yeah I just want Pontiac back, maybe Magna will pick them up.
      • 6 Years Ago
      It's okay, Ron. Just go sit down in your La-Z-Boy and read the latest copy of Car & Driver.
      I promise it will all be okay.......
      • 6 Years Ago
      A dedicated Teamsters union worker was attending a convention in Las Vegas and decided to check out the local brothels. When he got to the first one, he asked the Madam, ‘Is this a union house?’

      ‘No,’ she replied, ‘I’m sorry it isn’t.’

      ‘Well, if I pay you $100, what cut do the girls get?’

      ’The house gets $80 and the girls get $20,’ she answered.

      Offended at such unfair dealings, the union man stomped off down the street in search of a more equitable, hopefully unionized shop. His search continued until finally he reached a brothel where the Madam responded, ’Why yes sir, this is a union house. ‘We observe all union rules.’

      The man asked, ‘And if I pay you $100, what cut do the girls get?’

      ‘The girls get $80 and the house gets $20.’ ‘That’s more like it!’ the union man said.

      He handed the Madam $100, looked around the room, and pointed to a stunningly attractive green-eyed blonde.

      ‘I’d like her,’ he said.

      ‘I’m sure you would, sir,’ said the Madam. Then she gestured to a 92-year old woman in the corner, ‘but Ethel here has 67 years seniority and according to union rules, she’s next.’

      NOW YOU Know what’s wrong with the AUTO industry
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