GM officially bankruptMon, 01 Jun 2009
GM finally enters Chapter 11 Bankruptcy
The US Government is to provide £30 billion to fund the transition, with GM being split in to ‘Old GM’ and ‘New GM’. In exchange for the money the US Government will take a 60% stake in ‘New GM’ with all the toxic assets and liabilities being disposed of through ‘Old GM’.
The restructuring will allow GM to survive on a third less sales than before (10 million instead of 15 million). No real word yet on what brands will survive and what products are going to make a difference. But that will come.
GM’s European division is ringfenced from these proceedings and as we reported will now be run by Canadian Parts Company Magna. Saab, which is looking to Koenigsegg for salvation is also outside these proceedings. Let’s hope things can now move on and GM can look to create a business that supplies the cars its customer want.
They now have a chance.
By Cars UK