General Motors

In what is being described as the largest industrial bankruptcy in American history, and the third largest overall, General Motors (GM) filed for bankruptcy in the US Bankruptcy Court in the Southern District of New York today. A move that will clear the way for a sweeping reshaping of the famous company. (See here…)

The Times of London reports: “The move, which has been expected for weeks, will see the US Government take a 60 per cent stake in GM, officials of the Obama Administration revealed yesterday.”

The NYT provides a useful Q&A about GM…pl click here…

GM was founded in Flint, Michigan, in 1908 by William C. Durant, who brought a clutch of car companies – Buick, Oldsmobile, Cadillac and Pontiac – together under one roof and developed a strategy of “a car for every purse and purpose” . It steadily added more marques, including Chevrolet.Read here GM’s fascinating history.. And here…

With the iconic auto maker “all set to steer itself into bankruptcy, each share of the company is just than a penny in value. At the closing of the market on May 29, the scrip of General Motors was available for as low as 750 cents and the market capitalisation stood at $457.2 million.” More here…

Meanwhile despite GM’s well-flagged bankruptcy filing on Monday, GM’s Asia-Pacific sales in May grew 44 percent to an all-time record, GM said. More here…

GM India has announced that it continues all its normal operations and is not included in the court reinvention process of GM’s US operations. See here…

In Australia the Federal Government, the local car industry and the unions say they are confident that local operations of US car maker, General Motors, won’t be affected if the parent company files for bankruptcy. There has been speculation here that General Motors Holden could be sold off, but that’s been dismissed by Industry Minister, Kim Carr. More here…

The BBC provides interesting pictorial history of GM. See here…

And here’s GM timeline…

(Photo above courtesy AP: This 1908 Cadillac was produced the year GM was formed.)

SWARAAJ CHAUHAN, International Columnist
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