General Motors - To File up for Bankruptcy

The World famous General Motors has now faced the worst part of it.

It seems that GM management is now ready to file for Bankruptcy. The 100 year tradition of American automobile industry has now came into trouble.

Reuters say about this issue:

Since the start of the year, GM has been kept alive with U.S. government funding as a White House-appointed task force vetted plans for a sweeping reorganization that will be
undertaken with $50 billion in government financing.

By preparing to take a 60 percent stake in a reorganized GM, the Obama administration is gambling that the automaker can compete with the likes of Toyota Motor Corp after its debt is
cut by half and its labor costs are slashed under a new contract with the United Auto Workers union.

The governments of Canada and the province of Ontario agreed to provide another $9.5 billion to GM in a late addition to the plans for the bankruptcy that have been taking shape for
weeks, U.S. officials said.

GM plans to close 11 U.S. facilities and idle another three plants. It has not provided an updated target for job cuts but had been looking to cut 21,000 factory jobs from the 54,000 UAW
workers it now employs in the United States.

The UAW would have a 17.5 percent stake in the "new GM." The Canadian government would own 12 percent stake and GM bondholders would get 10 percent.

Lets expect a better tomorrow for the General Motors and what the US govt. going to do for the GM?

AS Obama is concentrated on Automobile industry more, hope he'll guide the GM to avoid Bankruptcy, i hope.

Cheers!!!