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| Version 7 | Version 8 |
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| 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. | 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, to be followed by the firm's chief executive Fritz Henderson. | President Barack Obama will host a press conference on GM's future later, to be followed by the firm's chief executive Fritz Henderson. |
| 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. | 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. |
| GM represented manufacturing supremacy and good jobs for American workers - that's gone. Gary Chaison, Clark University | GM represented manufacturing supremacy and good jobs for American workers - that's gone. Gary Chaison, Clark University |
| The restructuring will drastically change GM, with some 20,000 US workers thought likely to lose their jobs as the firm streamlines its operations. The firm currently has 173,000 employees across the US, Canada and Mexico. | The restructuring will drastically change GM, with some 20,000 US workers thought likely to lose their jobs as the firm streamlines its operations. The firm currently has 173,000 employees across the US, Canada and Mexico. |
| It is expected that GM may be able to exit bankruptcy protection within 60 to 90 days. | It is expected that GM may be able to exit bankruptcy protection within 60 to 90 days. |
| GM's main European business, Opel, and its UK brand Vauxhall, will not be affected by the bankruptcy protection move. This is because their ownership has been transferred to a trust fund ahead of their sale, the Germany government confirmed. | |
| Canadian car parts maker Magna International last week agreed to buy Opel and Vauxhall. | |
| 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 GM in pictures Union to gain GM stake What went wrong at GM | 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 GM in pictures Union to gain GM stake What went wrong at GM |
| While the US government is set to take a 60% stake in GM, the Canadian government is due to own 12.5%, with GM's unions having 17.5%, and bondholders 10%. | While the US government is set to take a 60% stake in GM, the Canadian government is due to own 12.5%, with GM's unions having 17.5%, and bondholders 10%. |
| Car industry analyst Gary Chaison, a professor of labour relations at Clark University, said the GM announcement marked the end of an era. | Car industry analyst Gary Chaison, a professor of labour relations at Clark University, said the GM announcement marked the end of an era. |
| "It'll have a huge impact in the US because it's more than just a corporation - it's an icon," he added. | "It'll have a huge impact in the US because it's more than just a corporation - it's an icon," he added. |
| "It represented manufacturing supremacy and good jobs for American workers - that's gone." | "It represented manufacturing supremacy and good jobs for American workers - that's gone." |
| Falling sales | Falling sales |
| 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. |
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