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General Motors files for bankruptcy


jalaffa

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NEW YORK (MarketWatch) -- General Motors Co. filed for bankruptcy Monday morning after months of speculation and attempts by the government to help the 100-year-old company avoid a potentially crippling event for the already weakened economy.

In a filing to the U.S. Bankruptcy Court for the Southern District of New York, the Detroit-based automaker reported total assets of $82.3 billion on a consolidated basis, with total debt of $172.8 billion.

GM (GM 0.88, +0.13, +17.35%) was represented in the filing by Weil, Gotshal & Manges LLP. The judge for the case has not yet been chosen.

As a member of the Dow 30 Industrial Average, GM will be replaced by Cisco Systems Inc. (CSCO 19.36, +0.86, +4.65%) .

The bankruptcy filing follows the company's failure to meet President Barack Obama's demand that it come up with a plan by June 1 that would return it to profitability.

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Pretty sad that the "worlds biggest" carmaker has been reduced to this, but it was to be expected.

Alot of the car companies use very outdated manufacturing techniques (well really manufacturing management techniques) and have huge stockpiles - expecting future demand to always equal previous demand. Theres lots of other things wrong, but i won't bore everyone with them :lol:

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I was riding a GM car before I was always at the repair shop, I was very happy to sell it and got Nissan.

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  • 2 weeks later...

Well one of US automobile giants goes down the drain!!!!!!!!!!!!!!!!!!!!!!! :( ;) :yes:

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