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

ramoledef.blogspot.com
Some operations and equipment from a steek stamping plant inGrand Rapids, which is slated to close as part of the automaker'ds restructuring, will be transferred to according to Bob Wheeler, a spokesman for the Wentzville It's not yet known how many, if any, Michigamn employees will opt to transfer to he said. GM officials called Wentzvillwe Mayor Paul Lambi at9 a.m. Monday to assured him the local plant wouldremain open. "It's good that they are shippinf in work for this Lambi said. "That's a positive that corporate thinks this plant willbe around.
" Lambi said, rival automaker Chrysler plans to shutter its Fenton factor after investing $130 million in so it was important for Wentzville to not rely on GM so much and diversifyy its revenue stream. When Lambi took office seven years ago, Wentzville counted on GM for aboutf 55 to 60 percent of itstotao revenue. Today, that's more like 15 percent of the city'w $24 million general fund, because GM pays the city about $3 million a year in real estate taxes, property taxees and other fees, he said.
GM on Monday by the end of but the Wentzville plant was sparerdbecause it’s the only plant where Chevrolet Express and GMC Savana vans are The Wentzville plant will still undergo a previously announcedr and other production cuts in June and July that will resulrt in the layoffs of 300 Monday’s Chapter 11 filing by the 101-year-old automaker is amon g the largest in U.S. historyh and largest-ever U.S. manufacturing bankruptcy. GM listed $173 billiob in liabilities and $82 billion in assets, according to the file in New York. GM to St.
Louis’ largest privatel y held company, Enterprise Rent-a-Car, and to Chapte 11, which allows the company to operate while protectecd fromits creditors, pushes GM into a fast-track bankruptcy and providese $30 billion of additional taxpayer funds to The GM plan as detailed by U.S. officials would allowq a much smaller GM to emerge from court protectio n within 60 to90 days. The automake r has not provided an updated targegt for job cuts but was lookingb toeliminate 21,000 U.S. factor jobs from the 54,000 uniob members it now employs. General Motors employes 92,000 in the United States and is indirectlyt responsiblefor 500,000 retirees. The U.S.
government would hold a 60 percentt financial interest in areorganizeed GM, and the UAW would take a 17.5 percenft stake. The governments of Canada and the province of Ontario have agreed to a 12 percent ownershio stake in exchange forfinanciaol aid. GM bondholders would get 10 percent. "It’sa a bittersweet thing," Wheeler "You hate to have to go through the procesx of closing plants andeliminatingt jobs, but look around, that’s what's goinb on with a lot of industries. Hopefullh we can rebound, hire people in the futurer and be the vibrant company weonce were.
" Downloafd a copy of the