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Done Deal: GM Out of Bankruptcy

Good assets go to US-backed firm

By Matt Cantor,  Newser Staff

Posted Jul 10, 2009 8:26 AM CDT
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(Newser) – As of 6:30 this morning, the new General Motors is on its way: The old firm sold its good assets to a new automaker backed by the government via a bankruptcy overhaul far speedier than experts expected, the New York Times reports. The new firm, Vehicle Acquisition Company, will soon be renamed General Motors. At an upbeat Detroit press conference 3 hours later, GM CEO Fritz Henderson promised to turn the impressive "speed and intensity" of the reorganization to making great cars.

The new, smaller GM will be 61% owned by the US; Canada and the United Auto Workers will hold the rest of shares. Now the hard part starts, the Times notes, as the company battles poor sales and adapts to a much smaller market share. The US will have pumped $50 billion into GM by year’s end; the government hopes it can go public again next year. “We are here to get the government out of the auto business,” says the US auto chief.

In this June 1, 2009 file photo, signs hanging inside the General Motors, Global Headquarters in Detroit, Mich., are shown.
In this June 1, 2009 file photo, signs hanging inside the General Motors, Global Headquarters in Detroit, Mich., are shown.   (AP Photo/The Canadian Press, Dave Chidley)
In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit.
In this Dec. 12, 2008 file photo, the General Motors logo is seen outside the GM headquarters in downtown Detroit.   (AP Photo/Carlos Osorio)
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COMMENTS
Showing 3 of 7 comments
Fondue
Jul 10, 2009 12:55 PM CDT
I guess the positive side would be that there is a child born every 8 seconds.
Reader65069154
Jul 10, 2009 12:27 PM CDT
NPR reported an estimated cost of $50 billion for this bailout. Divide that by the US popuation (roughly 304 million) and you get a cost to every man, woman and child in the US of $164! What a bargain! Thanks government!
Timinator2K
Jul 10, 2009 12:25 PM CDT
This one's all yours kokuaguy! :)

 
bankruptcy • General Motors • automaker • auto industry • US automakers

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