GM Will Declare Bankruptcy June 1: Insiders

(NEWSER) - If General Motors goes into bankruptcy next Monday—as is widely expected—the US government will own 70% of the automaker, the New York Times reports. Under a plan that GM officials detailed today to union members, the UAW would take a 17.5% stake though its health care fund, with a potential for 2.5% more. Bondholders, who have more money at risk than the UAW, would get just 10% of GM. More»

Layoffs, property price plunge leaves middle-aged workers in limbo

(NEWSER) - Tens of thousands of middle-aged white-collar workers have been left jobless and stranded in Michigan by the recession, the Wall Street Journal reports. Auto industry veterans laid off by the Big Three are finding themselves competing against against younger people for a smattering of job openings. With property prices down 45% from their 2006 peak, people are unable or unwilling to sell their homes and seek work elsewhere. More»

(NEWSER) - Recession be damned, desire for the 2010 Chevrolet Camaro far outstrips supply—and some dealers are even charging a premium for the sporty new ride, USA Today reports. “Our current production schedule can’t meet the demand,” a General Motors spokesman said. But “that supply-demand tension is good. We don’t want to over-produce, nor do we want people waiting an unreasonable amount of time.” More»

Vote paves way to bankruptcy filing tomorrow morning

(NEWSER) - GM bondholders voted yesterday to forgive $27 million in debt for equity in the restructured automaker, the Wall Street Journal reports. The move opens the door for a bankruptcy filing tomorrow morning, the New York Times notes. The Treasury Department was in charge of deciding whether enough bondholders backed the offer; “more than 50% agreed,” said an insider. More»

Treasury pushes automaker toward Fiat deal or liquidation

(NEWSER) - The Obama administration has given a further $500 million to keep Chrysler afloat, but Washington signaled yesterday it increasingly believes Chrysler will not survive as an independent company. Treasury officials met yesterday with CEO Robert Nardelli, as well as the heads of the United Auto Workers and Italian automaker Fiat. If it fails to strike a deal with Fiat, Chrysler could file for bankruptcy or liquidation by next week. More»