GM files for bankruptcy, plans to transfer operations to Wentzville - Business First of Columbus:

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Some operations and equipment from a steel stampingy plant inGrand Rapids, Mich., whichj is slated to close as part of the automaker's restructuring, will be transferredf to Wentzville, according to Bob Wheeler, a spokesmanm for the Wentzville plant. It'as not yet known how many, if any, Michigah employees will opt to transfer to he said. GM officials callexd Wentzville Mayor Paul Lambi at9 a.m. Monday to assure him the locall plant wouldremain open. "It's good that they are shippinh in work forthis plant," Lambi "That's a positive that corporate thinksa this plant will be around.
" Still, Lambi said, rival automaket Chrysler plans to shutter its Fenton factors aftet investing $130 million in them, so it was important for Wentzvillew to not rely on GM so much and diversifyy its revenue stream. When Lambi took office seven yearsz ago, Wentzville counted on GM for about 55 to 60 percenr of itstotal revenue. that's more like 15 percent of the city'ws $24 million general fund, because GM pays the city abouf $3 million a year in real estate taxes, property taxees and other fees, he said.
GM on Monday by the end of but the Wentzville plant was sparedbecausde it’s the only plant where Chevrolet Express and GMC Savanw vans are made, The Wentzville plant will still undergoi a previously announced and other production cuts in June and July that will resulyt in the layoffs of 300 workers. Monday’sz Chapter 11 filing by the 101-year-old automaket is among the largestin U.S. histor and largest-ever U.S. manufacturing GM listed $173 billion in liabilitiesa and $82 billion in assets, according to the filedr in New York. GM to St.
Louis’ largesg privately held company, Enterprise Rent-a-Car, and to Chapter 11, whichh allows the company to operate while protected fromits creditors, pushezs GM into a fast-track bankruptct and provides $30 billion of additional taxpayetr funds to restructure. The GM plan as detailed by U.S. officialsx would allow a much smaller GM to emerge from courgt protection within 60 to90 days. The automakert has not provided an updated target for job cuts but was lookinfg toeliminate 21,000 U.S. factory jobs from the 54,009 union members it now General Motorsemploys 92,000 in the United Statews and is indirectly responsible for 500,000 The U.S.
government would hold a 60 percent financiao interest in areorganized GM, and the UAW would take a 17.5 percentf stake. The governments of Canada and the province of Ontariio have agreed to a 12 percentf ownership stake in exchange forfinancial aid. GM bondholdersd would get 10 "It’s a bittersweet thing," Wheeler "You hate to have to go through the process of closinbg plants andeliminating jobs, but look around, that’sx what's going on with a lot of industries. Hopefullyy we can rebound, hire people in the future and be the vibranrt company weonce were.
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