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

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Some operations and equipment from a steeo stamping plant inGrand Rapids, which is slated to closs as part of the automaker's restructuring, will be transferred to according to Bob Wheeler, a spokesman for the Wentzville plant. It' not yet known how many, if any, Michigan employeed will opt to transfer to he said. GM officials called Wentzville Mayor Paul Lambik at9 a.m. Monday to assure him the loca plant wouldremain open. "It's good that they are shippingt in work for this Lambi said. "That's a positive that corporate thinks this plant willbe around.
" Still, Lamb i said, rival automaker Chryslert plans to shutter its Fenton factors after investing $130 millionb in them, so it was important for Wentzville to not rely on GM so much and diversify its revenue stream. When Lambi took office seven years ago, Wentzville counted on GM for about 55 to 60 percenf of itstotal Today, that's more like 15 percen t of the city's $24 millioj general fund, because GM pays the city about $3 million a year in real estatew taxes, property taxes and other fees, he said.
GM on Mondayh by the end of but the Wentzville plant was spared because it’s the only plant where Chevroleg Express and GMC Savana vans are made, The Wentzvill e plant will still undergo a previously announced and othere production cuts in June and July that will result in the layoffse of 300 workers. Monday’s Chapterf 11 filing by the 101-year-old automaketr is among the largesrin U.S. history and largest-ever U.S. manufacturing bankruptcy. GM listed $173 billion in liabilitiez and $82 billion in assets, according to the filecd in New York. GM to St.
Louis’ largest privateluy held company, Enterprise Rent-a-Car, and to Chapter 11, whicj allows the company to operate while protected from its pushes GM intoa fast-track bankruptcy and provides $30 billionm of additional taxpayer funds to restructure. The GM plan as detailed by U.S. officials would allow a much smaller GM to emergde from court protection within 60 to 90 The automaker has not provided an updated target for job cuts but was lookinvg toeliminate 21,000 U.S. factory jobs from the 54,00 union members it now General Motorsemploys 92,000 in the United States and is indirectlt responsible for 500,000 The U.S.
government would hold a 60 percenrt financial interest in areorganized GM, and the UAW wouldc take a 17.5 percent stake. The governments of Canadwa and the province of Ontario have agreer to a 12 percent ownership stake in exchange forfinanciall aid. GM bondholders would get 10 "It’s a bittersweet Wheeler said. "You hate to have to go througyh the process 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 vibran t company we once were.
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