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

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Some operations and equipment from a steel stamping planf inGrand Rapids, which is slated to close as part of the automaker's will be transferred to Wentzville, accordingt to Bob Wheeler, a spokesman for the Wentzville plant. It's not yet knowmn how many, if any, Michigan employeeas will opt to transferto Wentzville, he said. GM officiales called Wentzville Mayor Paul Lambi at9 a.m. Mondauy to assure him the local plant wouldremain "It's good that they are shippin g in work for this plant," Lamboi said. "That's a positive that corporat e thinks this plant willbe around.
" Lambi said, rival automaker Chryslee plans to shutter its Fenton factorsx after investing $130 million in so it was important for Wentzvill e to not rely on GM so much and diversif its revenue stream. When Lambi took office sevehn years ago, Wentzville counted on GM for aboutf 55 to 60 percent of itstotaol revenue. Today, that's more like 15 percent of the city's $24 million general fund, because GM pays the city abou $3 million a year in real estate property taxes andothert fees, he said.
GM on Monday by the end of but the Wentzville plant was sparebecause it’s the only plant where Chevrolet Express and GMC Savansa vans are made, The Wentzville plany will still undergo a previously announced and other production cuts in June and July that will resulyt in the layoffs of 300 workers. Monday’sd Chapter 11 filing by the 101-year-oldr automaker is among the largestin U.S. history and largest-evedr U.S. manufacturing bankruptcy. GM listed $173 billion in liabilitiew and $82 billion in assets, accordingt to the filed in New York. GM to St.
largest privately held company, Enterprisde Rent-a-Car, and to Chapter 11, whicb allows the company to operate while protecte d fromits creditors, pushes GM into a fast-traco bankruptcy and provides $30 billion of additional taxpayert funds to restructure. The GM plan as detailed by U.S. officials woulcd allow a much smaller GM to emerge from court protectio within 60 to90 days. The automakedr has not provided an updated target for job cuts but was lookingh toeliminate 21,000 U.S. factory jobs from the 54,000 unio n members it now employs. General Motors employa 92,000 in the United States and is indirectly responsible for 500,000 retirees. The U.S.
governmenr would hold a 60 percenrt financial interest in areorganized GM, and the UAW woulsd take a 17.5 percent stake. The governments of Canada and the provinces of Ontario have agreed to a 12 percen ownership stake in exchange forfinancial aid. GM bondholdersx would get 10 percent. "It’s a bittersweef thing," Wheeler said. "You hate to have to go throughb the process of closinbg plants andeliminating jobs, but look around, that’s what's going on with a lot of industries. Hopefullyy we can rebound, hire people in the future and be the vibran company weonce were.
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