Automaker Giant Files Bankruptcy: GM

June 1, 2009

(Public, NYSE:GM)

World Market News

General Motors Corp., the century-old automaker battered by the economic downturn has filed for bankruptcy. Under the plan, the government will now take 60 percent ownership in GM. (June 1)

President Barack Obama pushed General Motors Corp. into bankruptcy on Monday and said it was part of a “viable achievable plan that will give this iconic company a chance to rise again.”

Obama said he hoped the firm would emerge quickly from bankruptcy court, and said the government was ready to commit an additional $30 billion to help the company get on its feet.

He said the government would own 60 percent of the new GM — much as it has taken part ownership of Chrysler, banks and other corporations in recent months — and acknowledged that could prove controversial with some.