Automotive News for June 2009

Automotive News Archive

Michigan Governor Announces Job-Creation Initiatives

Michigan governor Jennifer M. Granholm has announced an aggressive strategy to diversify the economy and attract investment in the state. The plan entails more than a dozen job-creating projects estimated to generate more than 11,000 new positions while retaining another 846 jobs. The plan will reportedly bring more than $247 million in new investment to communities across the state.

GM Seeks to Reorganize Via Chapter 11 Bankruptcy Filing GM Seeks to Reorganize Via Chapter 11 Bankruptcy Filing

After weeks of speculation, General Motors (GM) on June 1 announced plans to reorganize under Chapter 11 of the United States Bankruptcy Code. The filing, which represents the largest Chapter 11 case in U.S. industry, will allow GM to sell various assets, restructure debt, cancel contracts, and close operations that normally would have to continue running. GM has amassed more than $172 billion in debt—nearly twice the value of its assets.