|Carson's Statement on General Motors Bankruptcy|
June 1, 2009
Washington, D.C. – Today, Congressman André Carson issued the following statement after General Motors (GM) announced that they would be filing for Chapter 11 bankruptcy:
“Today marks the beginning of a new era for the American automotive industry as General Motors filed for bankruptcy. For decades this symbol of American ingenuity has defined the middle class, employing generations of working Americans and serving as a pillar of our national economy. Now this iconic company must begin the process of remaking itself with a vision toward competing in the global, 21st Century economy.
“Due to past mismanagement and a prolonged decline in auto sales, this bankruptcy has become necessary to save the company from an impending collapse. In the restructuring period that will begin shortly, management, shareholders and union workers will all be making painful sacrifices. Many will lose their jobs or take significant financial hits to ensure the survival of one of our nation’s most important companies.
“At this point it is uncertain how many
More information about today’s bankruptcy announcement
As a part of filing for Chapter 11 bankruptcy, GM will undergo a significant restructuring that aims to secure the future of the company. Initial reports indicate that GM will be shedding their Pontiac, Saturn, Hummer and Saab brands while closing twelve plants and cutting nearly 21,000 jobs.
To prevent greater job losses and a facilitate a quicker recovery, the federal government will be providing $30 billion to assist with the restructuring efforts in return for a 60% stake in the company. President Barack Obama has also made assurances that warranties on GM vehicles will not be impacted.
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