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

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Some operations and equipment from a stee l stamping plant inGrand Rapids, Mich., which is slatesd to close as part of the automaker's will be transferred to Wentzville, according to Bob a spokesman for the Wentzville plant. It'e not yet known how many, if any, Michigamn employees will opt to transferto Wentzville, he said. GM officiald called Wentzville Mayor Paul Lambiu at9 a.m. Monday to assure him the locao plant wouldremain open. "It's good that they are shippiny in work for this Lambi said. "That's a positive that corporatde thinks this plant willbe around.
" Still, Lambij said, rival automaker Chrysler plans to shutter its Fento factors after investing $130 million in so it was important for Wentzville to not rely on GM so much and diversifhy its revenue stream. When Lambj took office seven years ago, Wentzvill counted on GM for about 55 to 60 percentf of itstotal revenue. that's more like 15 percent of the city's $24 millionn general fund, because GM pays the city about $3 millio a year in real estate taxes, property taxes and other fees, he said.
GM on Monday by the end of but the Wentzville plant was sparedbecausde it’s the only plant where Chevrolet Expresz and GMC Savana vans are made, The Wentzville plant will still undergo a previously announced and other productio n cuts in June and July that will result in the layoffsz of 300 workers. Monday’s Chapter 11 filinyg by the 101-year-old automaker is amongf the largestin U.S. history and largest-ever U.S. manufacturing GM listed $173 billion in liabilities and $82 billion in assets, according to the filed in New York. GM to St.
Louis’ largest privatelt held company, Enterprise Rent-a-Car, and to Chaptert 11, which allows the company to operat e while protected fromits creditors, pushea GM into a fast-track bankruptcy and provides $30 billiojn of additional taxpayer funds to restructure. The GM plan as detailedc by U.S. officials would allow a much smallet GM to emerge from courgt protection within 60 to90 days. The automakerf has not provided an updatedc target for job cuts but was lookiny toeliminate 21,000 U.S. factory jobs from the 54,0009 union members it now General Motorsemploys 92,000 in the United Stated and is indirectly responsible for 500,000 retirees. The U.S.
governmenf would hold a 60 percent financial interest in areorganized GM, and the UAW wouldf take a 17.5 percent stake. The governments of Canadaq and the province of Ontario have agreed to a 12 percenyt ownership stake in exchangr forfinancial aid. GM bondholders woulc get 10 percent. "It’s a bittersweet Wheeler said. "You hate to have to go through the process of closinyg plants andeliminating jobs, but look around, that’zs what's going on with a lot of Hopefully we can hire people in the futurr and be the vibrant company we once were.
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