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June 1st, 2009
05:40 AM ET

U.S. to own 60 percent of GM, government says

CNNMoney.com

General Motors, the nation's largest automaker and for decades an icon of American manufacturing, stood on the brink of a bankruptcy filing and a de facto government takeover today.

A bankruptcy petition will be filed at 8 a.m., according to a source with direct knowledge of the bankruptcy proceedings.

President Obama will address the nation shortly before noon on Monday to explain the rationale for the filing and his hopes that this is the best route for a turnaround, two officials close to the situation told CNN.

"Today will rank as another historic day for the company - the end of an old General Motors and the beginning of a new one," the administration stated in documents released Sunday.

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Filed under: 360° Radar • auto bailout
soundoff (10 Responses)
  1. JC- Los Angeles

    While our nation was run into the ground by failed leadership and the connected few who lined their pockets on Capitol Hill and Wall Street, what's most troubling is our inability to manufacture and produce anything that anyone wants to buy.

    Aside from an octogenarian's egregious rate cuts and convoluted financial instruments used to cash in on mortgage fraud, our nation continues to produce nothing of any worth.

    Geither will try to create another financial instrument to re-cash in on mortgage fraud and the 31 year old neophyte entrusted with GM will do whatever neophytes do, our nation needs to get back to basics and produce.

    June 1, 2009 at 12:44 pm |
  2. Lisa Trefz

    Should have left the economic process alone and faced the inevitable bankruptcy then. Would have less tax dollars wasted. And it is now nearly 6 months into the new administration, time to quit blaming everything that is bad on the past. We get it. Look forward as is intended. Still patiently waiting for change I can believe in.

    June 1, 2009 at 12:40 pm |
  3. Larry

    About time. There should be no car companies, convert them all to bicycle factories.

    June 1, 2009 at 12:14 pm |
  4. val

    What a scam ! The Bail-Out for GM paid-off all the "Foreign Investors" at top dollar. Then the Unions were successfully broken using Chapter 11. Now the "Foreign Investors" are re-buying shares at less than One dollar. The 3-Mass3-Media Parrots are “ danzing ” to the the Orchestrated “ Info-Tunes “ , just ask Ralph Naider.

    June 1, 2009 at 11:46 am |
  5. Melissa

    Sounds fine to me. The Republicans support business anyway. The gvt might as well own it, since obviously the original owners couldn't do their jobs properly. At least it should make the government money that all these people are complaining is needed. Might as well make money as a profit.

    Apparently the Republicans love their Ferengi. Now they just need to sprout the ears.

    June 1, 2009 at 10:50 am |
  6. enough

    Michael – They should have been allowed to fail. That's what happens when Unions take over companies. They should have gone under and started over on their own. Taxpayer bailout to the tune of $50 billion. How much per union job saved is that? There are still many more job losses to come out of this. The government isn't capable of running anything efficiently. Post office is a good example!!

    June 1, 2009 at 10:25 am |
  7. Michael C. McHugh

    Private ownership has failed completely in this case, so there was no other choice except having the government take it over if they were going to save at least some of these jobs.

    I think it should stay under government control, so it will be more likely to think about the long term instead of just short term profits, and build greener, more modern cars. I also think the employees should seriously consider whether they want to become the owners at some point in the future, instead of just returning to "normal" capitalist management. That hasn't worked out so well for them in the last 20-30 years, not in any industry in this country.

    June 1, 2009 at 9:36 am |
  8. SLM

    Is GM going to become CM – Congressional Motors? All this bailout was an extremely bad idea. The company should have been allowed to fail, there are still more job losses to come from this after $30 billion more being pumped into the dying heart of GM.

    June 1, 2009 at 9:10 am |
  9. Isabel, Brazil

    Many speculations until divulging the official news.
    The announcement will be made before the opening of markets, then we will see how the markets react.

    Was The Hummer sold? will this save the jobs?

    The day is hot and should be even better AC360 today.

    June 1, 2009 at 8:41 am |
  10. suntak

    Gov has controlling interest based on the US tax payers dollars. Can we expect the gov to pay back Americans those tax dollars as they gross up the latter? will see.

    June 1, 2009 at 6:11 am |

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