US car manufacturer General Motors is widely expected to file for bankruptcy later today, which is set to become the largest failure of a US industrial company. General Motors has reportedly racked up losses exceeding $81 billion over the last 4 years, plunging the company to the verge of collapse.
President Obama is expected to give more detail at a press conference later today and is likely to announce further funding for GM in the region of $30 billion. As a part of the new funding, the federal government is reportedly receiving a 60% stake in a new, leaner company, which is due to be re-launched within 3 months.
The General Motors restructuring is set to be dramatic, with up to 20,000 workers likely to lose their jobs. GM’s European brands Vauxhall and Opel are likely to be spared though, as Canadian car part manufacturer Magna proposed to buy the brands.
2 Responses
this really will be a issue for the car makers
Posted on June 19th, 2009 at 8:41 am
and how the mighty fall
Posted on June 24th, 2009 at 3:24 am
Add A Comment