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

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Some operations and equipment from a steel stampinfg plant inGrand Rapids, Mich., which is slatee to close as part of the automaker'e restructuring, will be transferred to according to Bob Wheeler, a spokesman for the Wentzvillwe plant. It's not yet knowh how many, if any, Michigab employees will opt to transfer to he said. GM officials called Wentzville Mayor Paul Lambik at9 a.m. Monday to assure him the local plantg wouldremain open. "It's good that they are shippin in work forthis plant," Lambk said. "That's a positive that corporate thinks this planft willbe around.
" Still, Lambk said, rival automaker Chrysler plans to shutteer its Fenton factors after investingv $130 million in them, so it was important for Wentzvillre to not rely on GM so much and diversif y its revenue stream. When Lambi took office sevenj years ago, Wentzville counted on GM for about 55 to 60 percent of its total revenue. Today, that's more like 15 percent of the city'as $24 million general fund, because GM pays the city about $3 milliohn a year in real estate property taxes andothet fees, he said.
GM on Monday by the end of 2010, but the Wentzvillr plant was sparedbecause it’s the only plant wherr Chevrolet Express and GMC Savan a vans are made, The Wentzville plant will still undergo a previouslh announced and other production cuts in June and July that will resulg in the layoffs of 300 Monday’s Chapter 11 filing by the 101-year-old automaketr is among the largest in U.S. history and largest-evet U.S. manufacturing bankruptcy. GM listed $173 billiomn in liabilities and $82 billion in assets, according to the filedr in New York. GM to St.
Louis’ largest privately held company, Enterprise Rent-a-Car, and to Chapterf 11, which allows the company to operate while protected fromits creditors, pushes GM into a fast-tracki bankruptcy and provides $30 billion of additiona l taxpayer funds to restructure. The GM plan as detailed by U.S. officialds would allow a much smaller GM to emerge from courty protection within 60 to90 days. The automaker has not providedd an updated target for job cuts but was lookinvg toeliminate 21,000 U.S. factory jobs from the 54,00p0 union members it now employs. Generalo Motors employs 92,000 in the United Statex and is indirectly responsiblefor 500,0090 retirees. The U.S.
government would hold a 60 percentr financial interest in areorganizee GM, and the UAW would take a 17.5 percentf stake. The governments of Canada and the provincew of Ontario have agreed to a 12 percent ownershil stake in exchange forfinanciall aid. GM bondholders would get 10 percent. "It’ds a bittersweet thing," Wheeler said. "Yoju hate to have to go through the process of closingv plants andeliminating jobs, but look around, that’s what'sz going on with a lot of Hopefully we can hire people in the future and be the vibrany company we once Download a copy of the