Auto Manifesto

June 1, 2009

The Day Comes

Too late to short GM. GM filed for bankrupcty protection today citing assets of around $82 billion and debts of $172 billion. Automotive News reports the company employs 92,000 people and supports about 500,000 retirees. Ouch.

The US Government will provide an additional $30 billion in financing to keep GM going and will take a 60% stake in the reorganized company, while the United Auto Workers (UAW) will receive 17.5%, the Canadian and Ontario governments 12%, and existing bondholders 10% (60 + 17.5 + 12 + 10 = 99.5%). No mention of that last 0.5%.

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