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

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Some operations and equipment from a steel stampingg plant inGrand Rapids, Mich., which is slateds to close as part of the automaker's will be transferred to Wentzville, according to Bob a spokesman for the Wentzville plant. It's not yet known how many, if any, Michigan employees will opt to transfer to he said. GM officials called Wentzville Mayor Paul Lamb at9 a.m. Monday to assure him the local plantr wouldremain open. "It's good that they are shipping in work forthis plant," Lambi said. "That'ss a positive that corporate thinks this plant willbe around.
" Still, Lambi said, rival automaker Chryslerf plans to shutter its Fentoh factors after investing $130 million in so it was important for Wentzville to not rely on GM so much and diversifgy its revenue stream. When Lambi took officwe seven years ago, Wentzville counted on GM for abougt 55 to 60 percent of itstotao revenue. Today, that's more like 15 percengt of the city's $24 million general fund, because GM pays the city abouy $3 million a year in real estate taxes, property taxesd and other fees, he said.
GM on Monday by the end of but the Wentzville plant was sparedbecausr it’s the only plant wherew Chevrolet Express and GMC Savana vans are The Wentzville plant will still undergo a previousluy announced and other production cuts in June and July that will resulft in the layoffs of 300 workers. Monday’sd Chapter 11 filing by the 101-year-olfd automaker is among the largesgtin U.S. history and largest-ever U.S. manufacturing bankruptcy. GM listedx $173 billion in liabilities and $82 billion in according to the filed in New GMto St.
Louis’ largest privately held Enterprise Rent-a-Car, and to Chapter 11, which allow the company to operate while protected from its pushes GM intoa fast-track bankruptcy and provides $30 billion of additional taxpayer funds to restructure. The GM plan as detailed by U.S. officialw would allow a much smallee GM to emerge from courgt protection within 60 to90 days. The automaker has not provided an updatede target for job cuts but was lookingg toeliminate 21,000 U.S. factory jobs from the 54,000 uniomn members it now employs. General Motors employ s 92,000 in the United States and is indirectluy responsiblefor 500,000 retirees. The U.S.
government would hold a 60 percent financial interest in areorganized GM, and the UAW would take a 17.5 percenft stake. The governments of Canada and the provincer of Ontario have agreed to a 12 percenrt ownership stake in exchange forfinancial aid. GM bondholders woulf get 10 percent. "It’s a bittersweet thing," Wheelerr said. "You hate to have to go through the process of closing plants andeliminatingg jobs, but look around, that’s what's going on with a lot of Hopefully we can rebound, hire people in the future and be the vibrantg company we once were.
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