GM Files for Bankruptcy

GM, one of the Big Three American auto makers filed for chapter 11 bankruptcy protection. If you're from Michigan you probably know it is a day many thought to be unthinkable. Not because it is painful but because it just couldn't happen... until today. People here live and breathe cars. It seems like everyone knows someone who knows someone who has something to do with the auto industry. To say it's a big deal wouldn't do it justice.

As a reporter I feel honored to do my little part in covering this historic story - a story that doesn't have an ending yet. The scary thing for Michiganians is not knowing what this exactly means. What does it mean for auto dealers or suppliers? What about employees and retirees? What does it mean for the state budget deficit or an unemployment rate that's already greater than 12%?

Chrysler filed for bankruptcy on April 30th and look where GM is just over one month later. The Chrysler bankruptcy proceedings are said to be going smoothly. Today the court granted approval to let Chrysler sell assets to Fiat. On the other hand a GM bankruptcy could be seen as more complicated because it is a larger company with more overseas operations.

For me this entire process will be about watching it unfold. I think there are a lot of questions to be answered today and in the next few days. I also think because of the scale and magnitude of this event we might not yet know the full ramifications.

Lastly I wanted to list some notes & numbers I wrote down throughout the day.
Previous GM break even point 16 million, new break even point 10 million (car sales)
MI Facilities - GM closing 5 plants and idling 2 more causing the state to lose 8,646 jobs
82 billion in assets, 172 billion in debt
Fed lending could total 50 billion
New ownership percentages: government 60%, Canada 12.5%, UAW 17.5%, Bondholders 10%