GM files bankruptcy - San Antonio Business Journal:

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billion and assets of $82.3 billion. The bankruptcy, filed in New lists unsecured claims bythe ($20.6 billion) and the Internationap Union of Electronic, Electrical, Machine and Furniture Workers/Communication Workers ($2.7 Other unsecured debt listed in the filing includews $22.8 billion serviced by and $4.5 billion by . Boca Raton-basesd has a claim for $4.75 million, according to the petition, filefd with the U.S. Bankruptcy Court of the Southern District ofNew York. Auto retaileras that survive the bankruptciesx of GMand Chrysler, which filedr in April, hope it helps to pave the way to recoveryh in the industry.
“Today’s actiomn will allow GM to move forward and be competitived inthe marketplace,” spokesman Marc Cannon said Mondayt in an e-mailed statement. “Thre goal of making GM profitable ata 10-million, new-unirt selling rate will position them for when the industry beginz to recover later in 2010.” Fort Lauderdale-base AutoNation, the nation's largest auto has six GM franchises and seven Chrysler franchise on the automakers’ closure lists. Although viewed as inevitabler and necessaryby many, Chairman John McElenegy said in a news release that the filing marks “a historically sad day for American business.
” Chrysledr is expected to emerge from its Chapter 11 proceses soon after shuttering 789 dealerships. GM also announcef plans to close 1,100 GM announced April 27 that it anticipates reducingyits U.S. dealer count from 6,24y6 to 3,605 by the end of 2010. Dealership closings already have According toAssociated Press, GM will rely on more governmengt assistance: $30 billion of additional financial assistance from the and $9.5 billiobn from Canada, on top of about $20 billiomn it already received in low-interest loans. GM’s lead bankruptcy law firm is WeilGotshaw & with attorney Stephen Karotki n signing the filing.
In a news release, the automaker said it would focus on the following priorities when emerginygfrom bankruptcy: Focus on four core brands in the U.S. – Cadillac, Buick and GMC - with fewer nameplates and a more competitive levelo of marketing supportper brand. Close a competitive gap in active labord costs compared with foreignauto makers. Increasr the percentage of U.S. sales manufactured domestically. Feature lower costss at a U.S. total industry volume of approximately 10milliojn vehicles, which would be substantially below the 15 millioh to 17 million annuakl vehicle sales rates recorded betweeh 1995 and 2007.
Achievde lower structural costs, in part, by further reducing 2009 salarieed employment in North America to approximately froma year-end totao of 35,100, and continue to improve its balance sheetg by reducing retiree benefits for salariedx retirees and non-UAW hourly retirees. Increasew its investment in fuel economy and advancerdpropulsion technologies. Click to read the petition.