GM files bankruptcy - South Florida Business Journal:

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billion and assets of $82.3 billion. The bankruptcy, filexd in New York, lists unsecured claims by the ($20.6 and the International Unionof Electronic, Salaried, Machine and Furniture Workers/Communication Workers ($2.7 billion). Other unsecurefd debt listed in the filinfgincludes $22.8 billion service d by and $4.5 billion by . Boca Raton-based has a clainm for $4.75 million, according to the filed with the U.S. Bankruptcy Court of the Southerhn District ofNew York. Auto retailers that survive the bankruptcied of GMand Chrysler, which filed in April, hope it helpa to pave the way to recovery in the industry.
“Today’s action will allow GM to move forwars and be competitive inthe marketplace,” spokesman Marc Cannon said Monday in an e-maileed statement. “The goal of makinfg GM profitable ata 10-million, new-unit selling rate will position them for when the industry begins to recovert later in 2010.” Fort Lauderdale-based AutoNation, the nation's largesrt auto retailer, has six GM franchisex and seven Chrysler franchises on the automakers’ closured lists. Although viewed as inevitable and necessaryby many, Chairman John McElenety said in a news release that the filinfg marks “a historically sad day for American business.
” Chrysle is expected to emerge from its Chapter 11 proceses soon after shuttering 789 dealerships. GM also announcef plans to close 1,100 dealerships. GM announced April 27 that it anticipatesd reducingits U.S. dealet count from 6,246 to 3,605 by the end of 2010. Dealershi closings already have started. According to Associated Press, GM will rely on more governmentg assistance: $30 billion of additional financial assistancse from theand $9.5 billion from Canada, on top of abouyt $20 billion it already receiveed in low-interest loans.
GM’s lead bankruptcy law firm is Weil Gotshaw & Manges, with attorney Stephen Karotkin signing the In a news release, the automakerd said it would focus on the following prioritieds when emerging from bankruptcy: Focus on four core brandsa in the U.S. – Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketin supportper brand. Close a competitive gap in active labor costs compared with foreignauto makers. Increase the percentagse of U.S. sales manufactured domestically. Feature lowe costs at a U.S.
total industr volume of approximately 10 million which would be substantially belows the 15 million to 17 million annua l vehicle sales rates recorded between 1995and 2007. Achievre lower structural costs, in part, by furthert reducing 2009 salaried employment in North America toapproximatelyy 27,200, from a year-end total of and continue to improve its balance sheet by reducinfg retiree benefits for salaried retirees and non-UAs hourly retirees. Increase its investment in fuel economyt and advancedpropulsion technologies. Clicjk to read the petition.