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GM Files Chapter 11 Bankruptcy: Follow It Live Page 3

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General Motors Renaissance Center, Detroit, Michigan

Fritz Henderson, GM president and CEO, says this will be the company's one chance at survival. “We are going to do it once and do it right,” he said in a press conference while confirming that new products like the 2011 Chevrolet Cruze, 2011 Chevrolet Volt and 2011 Chevrolet Spark still on track. GM also has launched GMReinvention.com, a new Web site to keep consumers updated on the company's massive restructuring.

The basics of Chapter 11 court proceedings are just the beginning. The first GM bankruptcy hearing 4 p.m. today in NYC, with Judge Robert Gerber presiding; the quick hearing keeps payroll, warranties and incentives rolling. GM has a deadline of July 10 to finalize restructuring under plan--dealer shutdowns and plant closings included. In the meantime, GM will be delisted from the Dow Jones Industrial Average along with Citigroup, to be replaced by Cisco and Travelers.No one involved in the massive restructuring will guarantee the outcome--and even Henderson admits every automotive turnaround requires products and finance to work. GM's chances of pulling both of those efforts off is dicey, says Al Ingrisani. The former assistant Labor secretary says the chances for successful GM reorganization while changing product lines are "zero to near zero...the only factor in their favor is unlimited checkbook from the government, until the political will runs out."

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Comments (8)
  1. Wishing them the best.
    I approve of the large chunk that the union health fund is getting, as it is potentially more protective of the taxpayer.
    If the partners can find a way to make quality small cars in the United States, we might see a replenishment of these manufacturing jobs, although necessarily at more realistic compensation levels.

  2. Worth pointing out here that while the scale of the rescue is very different, the US government made money on its 1979 loan guarantees to Chrysler. Boy, those seem like long-ago days ...

  3. Never comfortable with this much government involvement. Wish I had more faith in the politicians in Washington. Guess we'll see what we will see.

  4. They're downsizing themselves into the oblivion...

  5. what is going to happen to all the vendors who work with GM? will they ever get paid?

  6. They will become a simple Chinese and Korean rebadging shop. The sooner they die the better. Let's move this behind us and stop dumping more money into this loser.

  7. The biggest filing in US history ... this one will be studied by MBA students. I hope they can pull themselves together.

  8. This is ridiculous that such poorly run company is getting so much help. How many decent companies have gone under but never got a cent from the government.

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