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GM prepares to file for bankruptcy protection

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GM prepares to file for bankruptcy protection

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Once the world’s number one car maker, General Motor’s is all but certain to file for bankruptcy protection on Monday.

Under the US Treasury’s roadmap most of GM’s debt will be wiped out in exchange for bonds with assets being placed into a new company. It is hoped the rescue plan, which gives the US government some 72 percent and effectively nationalises the firm, will allow it time to restructure and make it leaner and stronger for the future. However, major cuts at GM are almost inevitable — at least 20,000 job losses expected at several US car plants.