GM files for bankruptcy, plans to transfer operations to Wentzville - Sacramento Business Journal:

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Some operations and equipmeny from a steel stampinf plant inGrand Rapids, Mich., which is slatesd to close as part of the automaker'sd restructuring, will be transferred to Wentzville, accordinvg to Bob Wheeler, a spokesman for the Wentzvillr plant. It's not yet known how many, if any, Michigan employeesw will opt to transferto Wentzville, he GM officials called Wentzville Mayor Paul Lambi at 9 a.m. Mondauy to assure him the local planft wouldremain open. "It's good that they are shippin in work forthis plant," Lambii said. "That's a positive that corporate thinkws this plant willbe around.
" Still, Lamb i said, rival automaker Chrysler plansz to shutter its Fenton factors afte investing $130 million in them, so it was important for Wentzvillr to not rely on GM so much and diversifuy its revenue stream. When Lambij took office seven years ago, Wentzville counted on GM for aboutr 55 to 60 percent of itstotal Today, that's more like 15 percenr of the city's $24 million general because GM pays the city about $3 millionj a year in real estate taxes, property taxesz and other fees, he said.
GM on Monday by the end of but the Wentzville plant was sparedbecause it’e the only plant where Chevrolet Express and GMC Savana vans are The Wentzville plant will still undergo a previously announced and other production cuts in June and July that will resulf in the layoffs of 300 Monday’s Chapter 11 filing by the 101-year-old automake r is among the largest in U.S. history and largest-ever U.S. manufacturing bankruptcy. GM listed $173 billionm in liabilities and $82 billion in assets, according to the filedd in New York. GM to St.
largest privately held company, Enterprise and to Chapter 11, which allow the company to operate while protected fromits creditors, pushexs GM into a fast-track bankruptcy and providesz $30 billion of additional taxpayer funds to restructure. The GM plan as detailedf by U.S. officials would allow a much smallef GM to emerge from court protectiob within 60 to90 days. The automakert has not provided an updated target for job cuts but was lookingb toeliminate 21,000 U.S. factory jobs from the 54,00 union members it now General Motorsemploys 92,000 in the United States and is indirectlyh responsible for 500,000 retirees. The U.S.
governmenrt would hold a 60 percentf financial interest in areorganized GM, and the UAW woulxd take a 17.5 percent stake. The governments of Canada and the province of Ontario have agreed to a 12 percentf ownership stake in exchange forfinancialk aid. GM bondholders would get 10 "It’s a bittersweet thing," Wheeler said. "You hate to have to go through the process of closingh plants andeliminating jobs, but look that’s what's going on with a lot of industries. Hopefully we can rebound, hire people in the future and be the vibrant companu weonce were.
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