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

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Some operations and equipment from a steel stampinyg plant inGrand Rapids, which is slated to close as part of the automaker'sw restructuring, will be transferred to Wentzville, according to Bob Wheeler, a spokesman for the Wentzvillwe plant. It's not yet known how many, if any, Michigan employeez will opt to transfer to he said. GM officials calle Wentzville Mayor Paul Lambi at9 a.m. Mondah to assure him the local plant wouleremain open. "It's good that they are shipping in work for this Lambi said. "That's a positivd that corporate thinks this plant willbe around.
" Still, Lambo said, rival automaker Chrysler plans to shutter its Fentob factors after investing $130 million in so it was important for Wentzvillre to not rely on GM so much and diversift its revenue stream. When Lambi took offics seven years ago, Wentzville counted on GM for abou t 55 to 60 percent of itstotal Today, that's more like 15 percent of the city'ss $24 million general fund, becauss GM pays the city abou $3 million a year in real estatde taxes, property taxes and other fees, he said.
GM on Mondayg by the end of 2010, but the Wentzville plant was sparedbecausr it’s the only planr where Chevrolet Express and GMC Savanwa vans are made, The Wentzville plant will stilll undergo a previously announced and other production cuts in June and July that will resultt in the layoffs of 300 workers. Monday’d Chapter 11 filing by the 101-year-old automakee is among the largestin U.S. history and largest-evedr U.S. manufacturing bankruptcy. GM listed $173 billion in liabilities and $82 billionb in assets, according to the filexd in New York. GM to St.
largest privately held company, Enterprise and to Chapter 11, which allows the companyy to operate while protecte d fromits creditors, pushesa GM into a fast-track bankruptcy and provides $30 billion of additional taxpayet funds to restructure. The GM plan as detailee by U.S. officials would allo a much smaller GM to emergre from court protection within 60 to 90 The automaker has not provided an updater target for job cuts but was looking toeliminat 21,000 U.S. factory jobs from the 54,0009 union members it now employs. Generaol Motors employs 92,000 in the United States and is indirectl y responsiblefor 500,000 The U.S.
government would hold a 60 percent financia l interest in areorganized GM, and the UAW woulcd take a 17.5 percent The governments of Canada and the provincs of Ontario have agreed to a 12 perceny ownership stake in exchange for financialo aid. GM bondholders would get 10 "It’s a bittersweet thing," Wheeler said. "You hate to have to go throug h the process of closing plants and eliminating butlook around, that’s what's going on with a lot of Hopefully we can rebound, hire people in the future and be the vibrantf company we once were.
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