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Gm Speeds Toward Restart

Auto Giant's Bankruptcy Filing Is Expected Today

June 01, 2009|By Jim Puzzanghera and Ken Bensinger , Tribune Washington Bureau

Senior administration officials would not comment on any GM operational issues Sunday, leaving that to company executives.

GM will be preparing to close down at least 11 of its plants, idle three others, sell or eliminate four of its brands and end its relationship with more than 40 percent of its franchised dealers.

It will be an automaker without a major European presence - it is in the process of selling its German-based Adam Opel unit to Canadian parts supplier Magna International - and thus one with a renewed focus on the North American market.

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The goal, administration officials said, is for the automaker to be able to make a profit in a U.S. market where only 10 million vehicles sell, industry wide, per year.

As recently as 2007, U.S. consumers bought 16.1 million cars and trucks. Through the first four months of this year, they're on pace to buy only 9.5 million

Bankruptcy & beyond

Today's expected filing: The largest industrial bankruptcy in U.S. history (fourth-largest overall) is expected to last 60 to 90 days.

More public money: The automaker expects to receive $30 billion in federal money, on top of $20 billion it has already accepted.

They broke it, we bought it: The U.S. government will have a 60 percent ownership stake in GM.

2nd-biggest bailout: Only insurer AIG will have received more.

Plant closures: Today, GM is expected to identify 14 plants it intends to close and name the buyer of its Hummer division.

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