Senior General Motors executives and US Treasury officials have finalised plans for the biggest industrial bankruptcy in America’s history.
They have put together a restructuring blueprint for what was once the world’s biggest car company. GM is preparing to file for a Chapter 11 bankruptcy – giving the company time to rearrange its finances whilst enabling it to carry on trading. GM Dealer Ed Rossi remains optimistic. “I didn’t sleep for a week and it was very traumatic for all of us here, the whole staff. They have to get it right. we have to get it right and we will. I really believe that,” he said. Driven to the economic brink by soaring production costs and the credit crunch, GM lost more than the equivalent of 20 billion euros last year. President Barack Obama is expected to outline details of the restructuring plan later today. The US government is said to be taking a 60 percent stake in the company in exchange for 60 billion dollars, or 42 billion euros in funding. Despite the wheeling and dealng, questions still remain about GM’s ability to turn around its plummeting sales figures.