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| Version 1 | Version 2 |
|---|---|
| GM enters bankruptcy protection | GM enters bankruptcy protection |
| (10 minutes later) | |
| Car giant General Motors (GM) has filed for bankruptcy protection, marking the biggest failure of an industrial company in US history. | Car giant General Motors (GM) has filed for bankruptcy protection, marking the biggest failure of an industrial company in US history. |
| The widely expected move comes after GM had seen its losses widen following a steep fall in sales in recent years. | The widely expected move comes after GM had seen its losses widen following a steep fall in sales in recent years. |
| The move into bankruptcy protection has been backed by the US government, which is now expected to take a 60% stake in the company. | The move into bankruptcy protection has been backed by the US government, which is now expected to take a 60% stake in the company. |
| The White House is also due to announce an extra $30bn (£18.5bn) of aid for GM. | |
| President Barack Obama will host a press conference on GM's future later. | |
| GM, which had already received $20bn of state aid since the end of last year, said in its bankruptcy filing that its current debts total $173bn. | |
| Expected job cuts | Expected job cuts |
| US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors. | US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors. |
| BANKRUPTCY PROTECTION US bankruptcy protection is called Chapter 11It gives US businesses time to rearrange their finances while continuing to trade, protected from their creditors | |
| The restructuring is likely to drastically change GM, with some 20,000 US workers thought likely to lose their jobs as the firm streamlines its operations. | |
| However, GM's European arm is likely to be spared bankruptcy following a proposed deal by Canadian car parts maker Magna International to buy GM Europe's Vauxhall and Opel brands. | However, GM's European arm is likely to be spared bankruptcy following a proposed deal by Canadian car parts maker Magna International to buy GM Europe's Vauxhall and Opel brands. |
| It is expected that GM may be able to exist bankruptcy protection within 60 to 90 days. | |
| GM, once the largest company in the world, has been losing market share since the early 1980s. | GM, once the largest company in the world, has been losing market share since the early 1980s. |
| It has been driven to bankruptcy because of high production costs and by the collapse in credit markets and consumer spending. It made losses of $30bn last year. | It has been driven to bankruptcy because of high production costs and by the collapse in credit markets and consumer spending. It made losses of $30bn last year. |
| GM was also slow to move away from producing gas-guzzling SUVs when consumers were looking for more fuel-efficient vehicles. | GM was also slow to move away from producing gas-guzzling SUVs when consumers were looking for more fuel-efficient vehicles. |
| Toyota sold more vehicles than GM in 2008, putting an end to the American company's 77-year reign as the world's biggest carmaker. | Toyota sold more vehicles than GM in 2008, putting an end to the American company's 77-year reign as the world's biggest carmaker. |