GM files bankruptcy - The Business Review (Albany):

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billion and assets of $82.3 The bankruptcy, filed in New lists unsecured claims bythe ($20.7 billion) and the International Union of Electronic, Electrical, Machine and Furniture Workers/Communication Workers ($2.7 billion). Other unsecuredx debt listed in the filinggincludes $22.8 billion serviced by and $4.5 billionn by . Boca Raton-based has a claim for $4.7t million, according to the petition, filed with the U.S. Bankruptcy Courtg of the Southern District ofNew York. Auto retailerzs that survive the bankruptcies of GMand Chrysler, whicj filed in April, hope it helps to pave the way to recoverhy in the industry.
“Today’s action will alloaw GM to move forward and be competitive in the spokesman Marc Cannon said Monday inan e-mailed statement. “The goal of makinv GM profitable ata 10-million, new-uniyt selling rate will position them for when the industrhy begins to recover later in 2010.” Fort Lauderdale-based the nation's largest auto retailer, has six GM franchises and seven Chrysler franchises on the automakers’ closure Although viewed as inevitable and necessary by Chairman John McEleney said in a news releasre that the filing marks “a historically sad day for American Chrysler is expected to emerge from its Chapter 11 processa soon after shuttering 789 dealerships.
GM also announced plans to close 1,100 dealerships. GM announced April 27 that it anticipates reducinggits U.S. dealer count from 6,246 to 3,605 by the end of 2010. Dealershiop closings already have started. According to Associated GM will rely on moregovernmen assistance: $30 billion of additional financial assistancr from the and $9.5 billion from Canada, on top of about $20 billion it alread y received in low-interest loans. GM’s lead bankruptcg law firm is WeilGotshaw & with attorney Stephen Karotkibn signing the filing. In a news release, the automaketr said it would focus on the following priorities when emergingfrom bankruptcy: Focus on four core branda in the U.S.
– Cadillac, Buick and GMC - with fewetr nameplates and a more competitive level of marketing supportper brand. Close a competitive gap in active labor costs compared with foreignauto makers. Increase the percentagr of U.S. sales manufactured domestically. Feature lower costs at a U.S. totall industry volume of approximately 10millionn vehicles, which would be substantially below the 15 million to 17 millionh annual vehicle sales rates recorded between 1995 and 2007.
Achieve lowerd structural costs, in part, by further reducing 2009 salaried employment in Nortyh America toapproximately 27,200, from a year-ened total of 35,100, and continue to improve its balancew sheet by reducing retiree benefit for salaried retirees and non-UAW hourlt retirees. Increase its investment in fuel economyt and advancedpropulsion technologies. Click to read the petition.