General Motors to file for bankruptcy
Monday 1st June 2009, 8:46AM BST.
General Motors is expected to file for bankruptcy protection later today.
Reports claim the US car manufacturer will file for Chapter 11, allowing the company to continue trading as it sorts out its finances.
US officials have confirmed GM will receive just over $30 billion (£18.5 billion) in government money.
The company owns Vauxhall and the decision to file for bankruptcy marls the biggest industrial failure in US corporate history.
The US government is expected to take a 60 per cent stake in new smaller version of GM, with around 11 factories set to be closed and thousands of jobs being lost.
GM owns Vauxhall in the UK and it’s hoped the company’s European section will be spared bankruptcy through a deal with Canadian car parts maker Magna International.
Business secretary Lord Mandelson has come under pressure from unions calling on the government to intervene and help bring about a deal which will protect the 5,500 jobs in the UK.
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