Well, the government has sunk a lot into General Motors, as in money. Now, President Obama is announcing the GM bankruptcy under Chapter 11 on Monday at 11:30AM, EST.
GM will be the third largest Chapter 11 bankruptcy in U.S. history. And this is what the Republicans wanted at the on set.
Lastly, this bankruptcy will cost thousands of jobs. No use in putting lipstick on a pig, for this one. This bankruptcy and retooling of GM must work or Obama will own it, in the end.
General Motors, the nation's largest automaker and for decades an icon of American manufacturing, stood Sunday on the brink of bankruptcy and an effective government takeover.
Investors who own a majority of $27 billion in GM bonds agreed Saturday to not fight the plans for a quick bankruptcy process, according to a source familiar with the preparations for the filing.
The deal with bondholders' could make it easier for GM to restructure by neutralizing some of the opposition to a bankruptcy filing. But it does not wipe away the need for the company to seek court protection for making drastic reductions in dealer, labor and other costs.
President Obama will address the nation at 11:30 a.m. on Monday to discuss the bankruptcy, two officials close to the situation told CNN.
It is expected that GM will detail some 20,000 job cuts and the closure of about a dozen plants by the end of 2010. The company has already said it will slash 40% of its network of 6,000 retail dealerships by next year as well, and drop four of its brands -- Hummer, Saab, Saturn and Pontiac.
The impact of GM's bankruptcy, which follows a Chapter 11 filing by Chrysler on April 30, will ripple across the nation to dealers, suppliers and other businesses large and small that work in the sector. read more here....