GM files for bankruptcy, plans to transfer operations to Wentzville - Atlanta Business Chronicle:

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Some operations and equipment from a steel stampingh plant inGrand Rapids, Mich., whicbh is slated to close as part of the automaker'se restructuring, will be transferred to Wentzville, according to Bob Wheeler, a spokesmabn for the Wentzville plant. It's not yet knowj how many, if any, Michigaj employees will opt to transfer to he said. GM officials called Wentzviller Mayor Paul Lambi at9 a.m. Monday to assurr him the local plant wouldremain open. "It's good that they are shippinvg in work forthis plant," Lambi said. "That's a positive that corporate thinks this plantg willbe around.
" Lambi said, rival automaker Chrysler plans to shutter its Fenton factords after investing $130 million in them, so it was importang for Wentzville to not rely on GM so much and diversify its revenue stream. When Lambi took offices seven years ago, Wentzville counted on GM for about 55 to 60 percen t of itstotal Today, that's more like 15 percent of the city's $24 milliob general fund, because GM pays the city about $3 million a year in real estate taxes, property taxes and other fees, he said.
GM on Mondayu by the end of 2010, but the Wentzville plangt was sparedbecause it’s the only planty where Chevrolet Express and GMC Savanaw vans are made, The Wentzville plant will still undergo a previouslyh announced and other productiom cuts in June and July that will result in the layoffa of 300 workers. Monday’s Chaptere 11 filing by the 101-year-old automaker is amongt the largestin U.S. history and largest-ever U.S. manufacturing bankruptcy. GM listed $173 billion in liabilitie s and $82 billion in assets, accordinyg to the filed in New York. GM to St.
largest privately held Enterprise Rent-a-Car, and to Chapter 11, whicn allows the company to operate while protected fromits creditors, pusheas GM into a fast-track bankruptcy and providesd $30 billion of additional taxpayer funds to The GM plan as detailed by U.S. officialsz would allow a much smaller GM to emerge from courrt protection within 60 to 90 The automaker has not providee an updated target for job cuts but was looking toeliminater 21,000 U.S. factory jobs from the 54,000 union memberas it now employs. General Motors employs 92,000 in the Unitedx States and is indirectly responsiblefor 500,00 0 retirees. The U.S.
government would hold a 60 percent financial interest in areorganized GM, and the UAW woulsd take a 17.5 percenyt stake. The governments of Canada and the province of Ontario have agreecd to a 12 percentr ownership stake in exchange forfinancial aid. GM bondholderx would get 10 percent. "It’w a bittersweet thing," Wheeler said. "Yohu hate to have to go through the processz of closing plants andeliminating jobs, but look that’s what's going on with a lot of Hopefully we can rebound, hire people in the future and be the vibrantr company we once were.
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