According to the Associated Press, General Motors filed for Chapter 11 bankruptcy protection today as part of the Obama administration’s plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.
GM’s bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.
How does a once captain of industry like GM recover from that? What happens to the workers at the 14 plants that are expected to be closed?
The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take a 12.5 percent stake, with the United Auto Workers getting a 17.5 percent stake and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.
Last I checked the U.S. Government didn’t have any money either. Why should we bail-out these auto tycoons? They should be forced to close and go back to the drawing board. Give consumers what they want, fuel-efficient cars at affordable prices. Just because GM and Chrysler couldn’t listen to the consumer in the first place doesn’t mean that the government has to buy them and save their asses.
This is not the USSR.
This whole situation and how it’s being handled by the government really irks me. GM made their bed because they refused to listen to the consumer, now let them lay in it. If anyone else or any other company made a mistake like that they would be shit out of luck…but because it’s GM the prodigal son of American Industry our tax dollars and our government will bend over backwards and kiss their butts.
I have never been so upset that I drive a Chevy. My next car is coming from Japan.