GM Declares Bankruptcy
It came as no surprise Monday General Motors, a staple in the auto industry, announced it's seeking more than $30 billion in federal assistance.
General Motors is the second automaker this year to declare bankruptcy after Chrysler did so last month. GM is looking to shed some of its products and dealerships in an effort to save money and its brand which celebrated its 100th birthday last September.
"The new GM will have a significantly stronger and healthier balance sheet, which will allow us to better support our brands and products through investment, increase our investment in new technology and be able to weather difficult times," says CEO Fritz Henderson.
The General Manager at Wade Raulerson in Gainesville says he stands behind his company - a company that has been serving Gainesville for 30 years. "We really do think that this is going to make them stronger as a whole. Not just for Buick, Pontiac, GMC but for GM other brands as well."
President Obama says he will invest $30 billion dollars in taxpayer money to GM, giving the government a 60% share in the auto manufacturer. "Difficult days lie ahead. More jobs will be lost. More plants will close. More dealerships will shut their doors and so will many parts suppliers."
One of those suppliers is in Jacksonville which will close after 50 years in business. 72 jobs there will be lost. As for Wade Raulerson, it plans on expanding; a different approach for a company that is scaling back and trimming costs. "Everybody hears about the letter that all the dealers are getting, we didn't get one and we've been here for over 30 years and we're going to be here that much longer," D'Alessio said.
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