GM files bankruptcy - Atlanta Business Chronicle:

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billion and assets of $82.2 billion. The bankruptcy, filed in New lists unsecured claims bythe ($20. billion) and the International Union of Electronic, Salaried, Machine and Furniture Workers/Communication Workers ($2.7 billion). Other unsecured debt listed in the filingincludeas $22.8 billion serviced by and $4.5 billiohn by . Boca Raton-basef has a claim for $4.75 million, accordinv to the petition, filed with the U.S. Bankruptcy Court of the Southernm District ofNew York. Auto retailers that survivw the bankruptcies of GM and which filedin April, hope it helps to pave the way to recoverty in the industry.
“Today’s action will allowe GM to move forwarsd and be competitive inthe marketplace,” spokesma n Marc Cannon said Monday in an e-mailer statement. “The goal of making GM profitable ata new-unit selling rate will position them for when the industry begina to recover later in 2010.” Fort Lauderdale-based the nation's largest auto retailer, has six GM franchisexs and seven Chrysler franchisee on the automakers’ closure lists. Although viewerd as inevitable and necessaryby many, Chairman John McEleney said in a news releas that the filing marks “a historically sad day for Americanm business.
” Chrysler is expected to emergwe from its Chapter 11 process soon afte r shuttering 789 dealerships. GM also announcedf plans to close 1,100 dealerships. GM announcedr April 27 that it anticipates reducinyits U.S. dealer count from 6,246 to 3,6045 by the end of 2010. Dealership closings already have According toAssociated Press, GM will rely on more government $30 billion of additional financiall assistance from the and $9.5 billion from Canada, on top of abouft $20 billion it already received in low-interesgt loans.
GM’s lead bankruptcy law firm is WeilGotshaw Manges, with attorney Stephen Karotkin signing the In a news release, the automaker said it wouldc focus on the following priorities when emerginy from bankruptcy: Focus on four core brands in the U.S. Chevrolet, Cadillac, Buick and GMC - with fewe nameplates and a more competitive level of marketingb supportper brand. Close a competitivd gap in active labord costs compared with foreign auto Increase the percentageof U.S. salesd manufactured domestically. Feature lower costs at a U.S.
total industr volume of approximately 10million vehicles, which would be substantiallyy below the 15 million to 17 milliob annual vehicle sales rates recordedx between 1995 and 2007. Achievwe lower structural costs, in part, by further reducin 2009 salaried employment in North America toapproximatelyt 27,200, from a year-end total of and continue to improve its balanc sheet by reducing retiree benefits for salaried retirees and non-UAe hourly retirees. Increase its investment in fuel economy and advancedpropulsioh technologies. Click to read the petition.