Call it ‘Government Motors’

What GM's bankruptcy filing means for America's auto industry, and for America
By Bob Vavra June 1, 2009
Gneeral Motors filed for bankruptcy protection Monday, June 1.
General Motors filed for Chapter 11 bankruptcy protection Monday morning, ending weeks of speculation. The filing was predicted since last week and was almost anti-climactic, given a weekend of news reports about how, and not whether, the restructuring would take place. It also means the federal government now owns a majority stake in GM.

It also set the stage of a series of changes at the nation’s largest automaker. A new, leaner GM is expected to emerge from the bankruptcy, and Obama Administration officials said they wanted minimal involvement in the process. A Chief Restructuring Officer has been named, and the company will begin moving toward a quick emergence from bankruptcy, with one official suggesting that could occur in 60 to 90 days.