General Motors files for bankruptcy protection

01 June 2009

General Motors Corporation, one of the world's largest automakers, today filed for bankruptcy amidst mounting debt and plummeting sales, ending a century-old dominance in the automobile market.

GM said it has reached agreements with the US Treasury and the governments of Canada and Ontario to accelerate its reinvention and create a leaner, stronger `New GM' positioned for a profitable, self-sustaining and competitive future.

''Pending approvals, the New GM is expected to launch in about 60 to 90 days as a separate and independent company from the current GM, with two distinct advantages: it will be built from only GM's best brands and operations.

GM would focus on its four core brands in the US, namely, Chevrolet, Cadillac, Buick and GMC.

GM said it has also signed agreements with the the United Auto Workers (UAW) and Canadian Auto Workers (CAW) unions and will be led by GM's current management team.

GM employees worldwide will become part of the New GM.