Local News

General Motors files for bankruptcy protection

Posted June 1, 2009

Map Marker  Find News Near Me

— General Motors has filed for bankruptcy protection as part of an Obama administration plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.

The fallen icon of American industrial might filed its Chapter 11 petition in New York on Monday. It marks the fourth-largest bankruptcy in U.S. history and the largest for an industrial company.

GM's reorganization plan will rely on up to $30 billion of additional financial assistance from the Treasury Department. That's on top of the $19.4 billion in taxpayer money GM already has received in the form of low-interest loans.

As part of bankruptcy restructuring, GM. says it will permanently close nine more plants and idle three others to trim production and labor costs.

Assembly plants in Pontiac, Mich., and Wilmington, Del., will close this year, while plants in Spring Hill, Tenn., and Orion, Mich., will shut down production but remain on standby.

Powertrain plants in Livonia, Flint and Ypsilanti Township, Mich. will close next year, along with plants in Parma, Ohio, and Fredericksburg, Va.

Stamping plants in Indianapolis and Mansfield, Ohio, also will close. A stamping plant in Pontiac, Mich., will be idled but remain in a standby capacity.

GM says it will also close service and parts warehouses in Boston, Jacksonville, Fla., and Columbus, Ohio, by the end of this year.

117 Comments

This story is closed for comments.

Oldest First
View all
  • Mobile Geek Jun 1, 2009

    " You see, it's not about you. And it's not about your kids. It's about the contribution you otherwise would not make towards benefiting society at large by making sure we don't have the VAST MAJORITY of children uneducated because you've decided it's something you should not fund. "

    It is about me, whether you like it or not. Your problems are not my problems. I do not contribute for the welfare of society. I contribute for myself and my family. If society benefits from that, then so be it. I don't set out to do my job for the benefit of my company. I do it to get paid, and if they benefit from that then good for them! When and if I am concerned with another person's well being, then will be charitable, and I am, and that is my choice. That is part of my individual liberty. Mandating people have to support institutions they do not agree with is not liberty. It's totalitarianism. But that seems to be OK with people like you. Social aristocrats.

  • babedan Jun 1, 2009

    kcfoxie, I'm sorry if you feel your not worth the comfort of a bigger vehicle but I am. I served 21 years in the military and am now 1000 miles from my parents house. When I go home I want to be able to get out of my vehicle without spending 2 days in traction. There are many families that I know of that still take vacations and drive to see what this great country is about. If you want to driver tiny cars that can't even pass the standards we set for the Corvair then that is your priviledge, but this is America and I for one don't want this government telling me what I can or cannot drive. Or if i don't do as they say they will tax me to the point that I can't do anything but obey their wishes.

  • Pseudonym Jun 1, 2009

    For those of you thinking that this is a good idea, that the cars will be clean, safe, and efficient, Google Trabant Motors. Trabant was a car company owned by the East German Government in the 70s and 80s. The things blew smoke and soot that make a bad smog day in LA look like pristine clean air.

  • Pseudonym Jun 1, 2009

    Quote:"I recently purhcased a 2009 Chevrolet. Due to GM's backruptcy, the depreciation on GM cars has increased significantly (according to edmunds.com).

    Since my car is worth much less than it would normally be, had GM had not gone bankrupt, I am going to write my congressmen and ask that I get reimbursed for the money I will lose due to accelerated depreciation. I think I am owed money, and hope Obama will soon realize this.
    Shaleen"

    Keep us posted on how that goes for you, especially getting the money owed to you for your depreciating asset. Don't hold your breath though. Also, keep us informed on whether or not Obama acknowledged that he owes you money.

  • confederateyankee Jun 1, 2009

    Blame Bush and Obama--and Clinton and GHW Bush if you want--but the fact of the matter is that because of the power of the UAW, GM long ago became a pension company first, and an automaker second. Once that tipping point was reached, failure was inevitable. Unions almost always eventually choke the life out of their industries. Ford is in better shape than Chrysler or GM, but they, too, will one day succumb to union greed.

    Of course, the automotive industry hardly has a lock on self-serving greed. The education racket--I refuse to call it a system, because systems function--is built in much the same way. The education unions focus on indoctrination and protectionism, but no on anything at all like education.

    We have teacher's unions galore.

    It's too bad we don't have any fighting for the rights for the student for competent instruction.

  • WRALblows Jun 1, 2009

    "Your problem is you are stuck on trying making government work, instead of finding solutions on how to do with out it. So sad."

    So what exactly is your great plan for educating the the 88% of children who can't afford private school without using your tax dollars towards publicly funded administration? And it can't be an "opt-in" plan where those without children (or those who elect to pay for private school) decide they are not going to contribute to the education of those who cannot afford it.

    You see, it's not about you. And it's not about your kids. It's about the contribution you otherwise would not make towards benefiting society at large by making sure we don't have the VAST MAJORITY of children uneducated because you've decided it's something you should not fund. Trust me, you privatize the administration while using public funding and your tax bill will wish you hadn't. The costs will skyrocket overnight in the hands of the private, for profit sector.

  • ranquick Jun 1, 2009

    Until the Government begins to TAX the big Corp their fair share we as a Country are going to remain in this downturn, untill the Government make Bank and Finance Companies who have borrowed money from Governement for little or nothing and then turn aroound and charge customers OUTRAGEOUS insterest this Country will remain in a downturn, WAKE up America it time to get the right people in Washington who care about the backbone of this COuntry, the Government is TAXING middle Americans to death.

  • muttley - back by popular demand Jun 1, 2009

    I recently purhcased a 2009 Chevrolet. Due to GM's backruptcy,
    the depreciation on GM cars has increased significantly (according to edmunds.com).

    Since my car is worth much less than it would normally be, had GM had not gone bankrupt, I am going to write my congressmen and ask that I get reimbursed for the money I will lose due to accelerated depreciation. I think I am owed money, and hope Obama will soon realize this.

  • kcfoxie Jun 1, 2009

    Mobile Geek: have you seen what cars are popular in china? Audi, VW, Toyota... these aren't 'small' models like the Fox, Polo, more like Jetta, Passat, EOS, A4, S4/6, etc. And the people keep buying and keep affording them. Amazing how that works, isn't it?

    The free ride is over. Do you truly need a 5 or 6 passenger car when most of your time is spent driving yourself to and from work? The answer is no, you don't. If we really wanted to be socialist we'd be forcing light rail city service in all marjor cities, that way when they do tax cars and fuels, you can walk to the bus, ride it 5 min to the train, take it into work.. and commute like most of the modernized planet does outside the good old United States (unless you live in DC, NY, Portland OR or many cities I saw out west that actually had public systems that did more than one stop every 45 minutes).

    Said it before, say it again. I prefer having a 2dr hatchback to a 4dr sedan, and always will. I'm not small, either.

  • kcfoxie Jun 1, 2009

    babedan... I really just have to giggle again at the idea that people with small cars won't take long trips. How often do you take a road trip with more than 2 people? Seriously? I don't have a family (and never plan to), and even if I did... I grew up in a Sprint from Dodge (Or Spirit or something). Small 2DR white hatchback with that ugly red velvet interior. I still have nightmares of that interior. Regardless it saw me thru the first 12 years of life and guess what, it was still fine when mom wanted -- not needed, but wanted -- a minivan.

More...