With the sale of GM’s good assets to a government-controlled car company, the car giant has emerged from bankruptcy, sources told the AP and the Times — and it did so much faster than expected. The new company, also to be called the General Motors Company, will be much smaller and be comprised of the Buick, Cadillac, Chevrolet, and GMC brands. Hummer, Pontiac, Saturn, and Saab have been sold or will be sold off. The U.S. government owns just over 60 percent of this new organization, with the Canadian government and a health-care trust for the UAW and bondholders owning the rest. According to the Times, the transferring of factories, money, and intellectual property took place at 6:30 a.m. this morning in Manhattan at the offices of the law firm Weil, Gotshal & Manges. GM is now out of Chapter 11 bankruptcy protection, and with its new small size, is expected to be better able to nimbly navigate the auto market in this difficult time.
GM EMERGES FROM BANKRUPTCY [NYP]
With Sale of Its Good Assets, G.M. Tries for a Fresh Start [NYT]
