General Motors Corp filed for bankruptcy on Monday, forcing the 100-year-old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership.
The bankruptcy filing is the third-largest in U.S. history and the largest ever in U.S. manufacturing.The widely expected move comes after GM had seen its losses widen following a steep fall in sales in recent years. The move into bankruptcy protection has been backed by the US government, which is now expected to take a 60% stake in the company.
GM had already received $20bn of state aid since the end of last year. US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors. The restructuring is likely to drastically change GM, with some 20,000 US workers thought likely to lose their jobs.
The bankruptcy filing is the third-largest in U.S. history and the largest ever in U.S. manufacturing.The widely expected move comes after GM had seen its losses widen following a steep fall in sales in recent years. The move into bankruptcy protection has been backed by the US government, which is now expected to take a 60% stake in the company.
GM had already received $20bn of state aid since the end of last year. US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors. The restructuring is likely to drastically change GM, with some 20,000 US workers thought likely to lose their jobs.
