GM files bankruptcy - Orlando Business Journal:

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billion and assets of $82.3 billion. The bankruptcy, filed in New lists unsecured claims bythe ($20.6 billion) and the International Union of Electronic, Electrical, Salaried, Machine and Furnitur Workers/Communication Workers ($2.7 billion). Other unsecured debt listed in the filinfgincludes $22.8 billion serviced by and $4.5 billion by . Boca Raton-basec has a claim for $4.75 according to the petition, filed with the U.S. Bankruptcu Court of the Southern Districyt ofNew York. Auto retailerz that survive the bankruptciea of GMand Chrysler, which filed in April, hope it helpsd to pave the way to recovery in the industry.
“Today’xs action will allow GM to move forward and be competitivse inthe marketplace,” spokesman Marc Cannon said Mondayg in an e-mailed statement. “The goal of makingb GM profitable ata new-unit selling rate will position them for when the industryu begins to recover later in 2010.” Fort Lauderdale-basedr AutoNation, the nation's largest auto retailer, has six GM franchiseas and seven Chrysler franchises on the closure lists. Although viewed as inevitable and necessary by many, Chairman John McEleney said in a news releasew that the filing marks “a historicall y sad day for Americam business.
” Chrysler is expected to emerge from its Chapter 11 proces s soon after shuttering 789 dealerships. GM also announcerd plans to close 1,100 dealerships. GM announcedr April 27 that it anticipatesx reducingits U.S. dealer count from 6,2456 to 3,605 by the end of 2010. Dealershi closings already have started. According to Associated GM will rely on moregovernment $30 billion of additional financial assistance from the and $9.5 billio n from Canada, on top of about $20 billionj it already received in low-interest loans. GM’ds lead bankruptcy law firm is WeilGotshaw & with attorney Stephen Karotkin signing the filing.
In a news the automaker said it would focus on the following priorities when emergingfrom bankruptcy: Focu on four core brandzs in the U.S. – Cadillac, Buick and GMC - with fewer nameplatex and a more competitive leveo of marketing supportper brand. Closd a competitive gap in active labord costs compared with foreignauto makers. Increase the percentag of U.S. sales manufactured Feature lower costs ata U.S. totalk industry volume of approximately 10millionj vehicles, which would be substantially belowa the 15 million to 17 milliom annual vehicle sales rates recorded betweenm 1995 and 2007.
Achievwe lower structural costs, in part, by further reducinh 2009 salaried employment in North America toapproximatelyu 27,200, from a year-enc total of 35,100, and continue to improve its balancde sheet by reducing retiree benefits for salaried retirees and non-UAW hourl retirees. Increase its investment in fuel economy and advancefpropulsion technologies. Click to read the petition.