On June 1st GM filed for bankruptcy protection in order to reorganize. Under the proceeding the company will receive access to an additional $30 billion from the Treasury Department, as well as $9.5 billion from Canada. GM has already received access to $20 billion in loans from Treasury.  The federal government will own about 60 percent of the company.

The bankruptcy comes on the heels of Chrysler’s pending emergence from the bankruptcy process. Chrysler struck a deal led by Italian automaker Fiat. Under the deal Fiat plans to take over Chrysler.

Updated 6/01/09

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General Motors (GM) logoGeneral Motors Corporation (GM) is a U.S.-based automobile manufacturer, founded in 1908 and headquartered in Detroit, Michigan. GM is the world’s second largest automaker. It manufactures its vehicles in 34 countries around the globe, and sells and services vehicles in 140 countries. The company employs approximately 252,000 people. The company sells cars under the Chevrolet, Buick, Saab, GMC, Pontiac, Cadillac, Hummer, and Saturn, Opel, Vauxhall, Isuzu, Holden, and Daewoo brands. The company also has nearly 7,000 auto dealers in the U.S.

In addition, General Motors holds a 49% share in GMAC Financial Services. GMAC was previously a wholly-owned subsidiary of GM, until 2006 when it sold a majority share to Cerberus Capital Management for $14 billion.

General Motors has received $14.3 billion in Troubled Asset Relief Program (TARP) funds. This includes an $864 million loan, and stock exchanges of $4 billion on December 31, 2008, $5.4 billion on January 21, 2009, and $4 billion on February 17, 2009.

The company’s restructuring plan, which was required as a condition of the receipt of federal bailout dollars, indicates that General Motors will need as much as $16.6 billion additional federal dollars to return the company to solvency.  Analysts have recently stated that GMAC will likely be forced to file bankruptcy.

 

 


Resources

Bank Bio Chart | Financial Documents | Federal contracts

Lobbying reports | Political Contributions | Related Articles

 


Bailout Bank Bio: General Motors (GM)

 

Federal Equity Investment

$20.6 billion

Total Revenue

$179,984,000,000 (2007)
$148,979,000,000 (2008)

Net Income (Loss)

($38,732,000,000) (2007)
($30,860,000,000) (2008)

Number of Employees

252,000

Corporate Headquarters

Detroit, Michigan

Business Sector

Auto Company

 

Officers and Directors

Wagoner, G. Richard, Chairman of the Board, Chief Executive Officer
Other officers and directors

Corporate Website

http://www.gm.com

Executive Compensation

General Motors (GM)

RELATED ARTICLE
Forecasting in Uncharted Fiscal Waters

 

Financial Documents

2008 General Motors Annual Report (filed March 5, 2009)

General Motors Restructuring

2009-01-07 General Motors 8K

2008 General Motors Proxy Amend

2008 General Motors Proxy

2008-09-30 General Motors 10Q

2007 General Motors Annual Report

2007 General Motors 10K

 

Federal contracts

USAspending.gov (last accessed 06/02/2009)

 

 

Lobbying reports (if any)

 

Fourth Quarter 2008

Angus & Nickerson | Baker & McKenzie | BKSH & Associates | Bob Moss Assoc | Covington & Burling | Davis & Harman | DCI Group | Duberstein Group | General Motors | Greenberg Traurig | Hogan & Hartson | Jennings Policy Strategies | King & Spalding | The Nickles Group | Policy Impact Communications | Richetti Incorporated | John Stinson |
 

RELATED ARTICLE
GAO’s Warning: Action Required to Avert America’s Looming Fiscal Crisis

 

Political Contributions

Center for Responsive Politics (last accessed 03/04/2009)

 

 

 

Related Articles

June 2, 2009 What's next for General Motors? (Chicago Tribune)

June 2, 2009 GM has Hummer deal, declines to name buyer (Reuters)

June 1, 2009 Obama Is Upbeat for G.M.’s Future (Washington Post)

June 1, 2009 General Motors files for bankruptcy protection (AP)

June 1, 2009 General Motors, Citigroup to be cut from the Dow (Washington Post)

March 27, 2009 Automakers to Get Aid Package (Washington Post)

March 5, 2009 Auditors raise concern about GM’s viability (Atlanta Business Journal)

March 3, 2009 Auto Sales: Worst February in 40 Years (BusinessWeek)

March 3, 2009 TALF's Terms Bring Little Relief To Struggling Auto Makers (CNNMoney)

February 9, 2009 GM, Chrysler May Face Bankruptcy to Protect U.S. Debt Bloomberg

February 3, 2009 US Auto Sales Hit 27-Year Low BusinessWeek

January 22, 2009 Firms Keep Lobbying as They Get TARP Cash Wall Street Journal

January 15, 2009 GM's Reality Check Forbes

December 31, 2008 General Motors receives first $4 billion tranche of federal loan Associated Press 

December 12, 2008 Treasury to Throw Lifeline to Cash-Strapped Automakers FOX Business 

December 12, 2008 The Big Three: Not dead yet! CNNMoney.com

November 21, 2009 Road Ahead Is Long for G.M. New York Times

 

 

Last Updated June 2, 2009

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