GM files bankruptcy - Houston Business Journal:

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billion and assets of $82.3 billion. The filed in New York, lists unsecurec claims by the ($20.t6 billion) and the Internationall Union of Electronic, Electrical, Machine and Furniture Workers/Communication Workers ($2.7 billion). Other unsecured debt listed in the filingincludes $22.i8 billion serviced by and $4.5 billiojn by . Boca Raton-based has a claim for $4.754 million, according to the filed with the U.S. Bankruptcy Court of the Southern Districty ofNew York.
Auto retailers that survivd the bankruptcies of GMand Chrysler, which filed in April, hope it helpas to pave the way to recovery in the “Today’s action will allow GM to move forward and be competitivee in the marketplace,” spokesman Marc Cannon said Mondat in an e-mailed statement. “The goal of making GM profitabl ata 10-million, new-unit sellingy rate will position them for when the industryt begins to recover later in 2010.” Fort Lauderdale-bases AutoNation, the nation's largest auto retailer, has six GM franchisesz and seven Chrysler franchises on the closure lists.
Although viewedf as inevitable and necessaryby many, Chairmamn John McEleney said in a news releasd that the filing marks “a historicallu sad day for American Chrysler is expected to emerge from its Chapterr 11 process soon after shuttering 789 dealerships. GM also announcedf plans to close 1,100 dealerships. GM announce April 27 that it anticipatese reducingits U.S. dealer count from 6,246 to 3,6054 by the end of 2010. Dealership closings already have started. Accordinvg to Associated Press, GM will rely on more governmenrt assistance: $30 billion of additional financiao assistance from theand $9.5 billion from on top of about $20 billion it already received in low-interesr loans.
GM’s lead bankruptcy law firm is WeilGotshaww & Manges, with attorney Stephe Karotkin signing the filing. In a news release, the automakerd said it would focus on the following prioritiex when emergingfrom bankruptcy: Focuds on four core brands in the U.S. Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitiv e level of marketing supportper brand. Closde a competitive gap in activw labor costs compared with foreign auto Increase the percentageof U.S. salee manufactured domestically. Feature lower costs at a U.S.
total industry volumde of approximately 10million vehicles, which woulfd be substantially below the 15 million to 17 millio n annual vehicle sales rates recorded between 1995 and 2007. Achievew lower structural costs, in part, by furthee reducing 2009 salaried employment in North Americsa toapproximately 27,200, from a year-enr total of 35,100, and continue to improvew its balance sheet by reducing retiree benefits for salariedd retirees and non-UAW hourly retirees. Increase its investmenty in fuel economy and advancedpropulsion technologies. Click to read the petition.