Bailout Bank Bio: General Motors

Jun 2, 2009 | 5 min read | Print Article

On June 1st GM filed for bankruptcy protection in order to reorganize. Under the proceeding the company will receive access to an additional $30 billion from the Treasury Department, as well as $9.5 billion from Canada. GM has already received access to $20 billion in loans from Treasury. The federal government will own about 60 percent of the company.

The bankruptcy comes on the heels of Chrysler’s pending emergence from the bankruptcy process. Chrysler struck a deal led by Italian automaker Fiat. Under the deal Fiat plans to take over Chrysler.

Updated 6/01/09

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General Motors (GM) logo General Motors Corporation (GM) is a U.S.-based automobile manufacturer, founded in 1908 and headquartered in Detroit, Michigan. GM is the world’s second largest automaker. It manufactures its vehicles in 34 countries around the globe, and sells and services vehicles in 140 countries. The company employs approximately 252,000 people. The company sells cars under the Chevrolet, Buick, Saab, GMC, Pontiac, Cadillac, Hummer, and Saturn, Opel, Vauxhall, Isuzu, Holden, and Daewoo brands. The company also has nearly 7,000 auto dealers in the U.S.

In addition, General Motors holds a 49% share in GMAC Financial Services. GMAC was previously a wholly-owned subsidiary of GM, until 2006 when it sold a majority share to Cerberus Capital Management for $14 billion.

General Motors has received $14.3 billion in Troubled Asset Relief Program (TARP) funds. This includes an $864 million loan, and stock exchanges of $4 billion on December 31, 2008, $5.4 billion on January 21, 2009, and $4 billion on February 17, 2009.

The company’s restructuring plan, which was required as a condition of the receipt of federal bailout dollars, indicates that General Motors will need as much as $16.6 billion additional federal dollars to return the company to solvency. Analysts have recently stated that GMAC will likely be forced to file bankruptcy.

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Bailout Bank Bio: General Motors (GM)


Federal Equity Investment	$20.6 billion
Total Revenue	$179,984,000,000 (2007) $148,979,000,000 (2008)
Net Income (Loss)	($38,732,000,000) (2007) ($30,860,000,000) (2008)
Number of Employees	252,000
Corporate Headquarters	Detroit, Michigan
Business Sector	Auto Company
Officers and Directors	Wagoner, G. Richard, Chairman of the Board, Chief Executive Officer Other officers and directors
Corporate Website	http://www.gm.com
Executive Compensation	General Motors (GM)