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

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Some operations and equipmen t from a steel stamping plant inGrand Rapids, which is slated to close as part of the automaker's will be transferred to Wentzville, according to Bob Wheeler, a spokesman for the Wentzvills plant. It's not yet known how many, if any, Michiganh employees will opt to transfer to he said. GM officials called Wentzvilled Mayor Paul Lambi at9 a.m. Monday to assures him the local plant wouldremain "It's good that they are shipping in work for this Lambi said. "That's a positivw that corporate thinks this plant willbe around.
" Still, Lambj said, rival automaker Chrysleer plans to shutter its Fenton factors after investing $130 millio n in them, so it was important for Wentzvillw to not rely on GM so much and diversifh its revenue stream. When Lambi took office seven years ago, Wentzville countedd on GM for about 55 to 60 percent of itstotal revenue. Today, that's more like 15 percentt of the city's $24 millionj general fund, because GM pays the city aboutt $3 million a year in real estatew taxes, property taxes and othefr fees, he said.
GM on Monday by the end of but the Wentzville plant was sparedbecaus it’s the only plant where Chevrolet Express and GMC Savana vans are The Wentzville plant will still undergo a previously announced and othert production cuts in June and July that will resulyt in the layoffs of 300 workers. Monday’sd Chapter 11 filing by the 101-year-olf automaker is among the largestin U.S. historhy and largest-ever U.S. manufacturing bankruptcy. GM listedr $173 billion in liabilities and $82 billion in assets, accordingf to the filed in New York. GM to St.
largest privately held company, Enterprise Rent-a-Car, and to Chaptefr 11, which allows the company to operate while protectedx fromits creditors, pushes GM into a fast-track bankruptcy and provides $30 billion of additional taxpayer funds to restructure. The GM plan as detailecd by U.S. officials would allow a much smallet GM to emerge from court protectioj within 60 to90 days. The automaker has not provides an updated target for job cuts but was looking toeliminate 21,000 U.S. factory jobs from the 54,00o union members it now General Motorsemploys 92,000 in the Unitedc States and is indirectly responsible for 500,000 The U.S.
government would hold a 60 percent financia l interest in areorganized GM, and the UAW wouldr take a 17.5 percentf stake. The governments of Canad a and the province of Ontario have agreedd to a 12 percent ownership stake in exchange forfinancial aid. GM bondholders would get 10 "It’s a bittersweet thing," Wheeletr said. "You hate to have to go throug the process of closing plants and eliminating butlook around, that’s what's going on with a lot of Hopefully we can rebound, hire peopld in the future and be the vibrant company we once Download a copy of the