#bankruptcy

Earlier this week General Motors officially turned off the lights and locked the doors at its Boxwood Road assembly plant for the last time, marking the end of the line for the Pontiac Solstice and Saturn Sky.

Today the sun rose on a New General Motors, a move which will also see the sun set on a lot of people’s careers. GM emerged from bankruptcy protection at 6:30 a.m. Eastern Time with news of a serious corporate restructuring plan that will take effect over the next few months.

Late Sunday a judge approved the sale of GM’s assets to a group comprised of the U.S. government, the UAW and the Canadian and Ontario governments under the name NGMCO, Inc. The decision will see GM exit bankruptcy court quickly with the ‘New GM’ assets going to NGMCO, while the ‘Old GM’ assets will be sold off to the highest bidder.

When the U.S. Supreme Court delayed the sale of Chrysler to Fiat yesterday it put the whole contract in jeopardy, giving the Italian automaker the opportunity to walk away if the sale isn’t approved by June 15th. Fiat CEO Sergio Marchionne has, however, confirmed his commitment to the purchase, saying that it would not deter him.

A U.S. Supreme Court judge has delayed the sale of Chrysler to a new Fiat-run company. The move by Justice Ruth Bader Ginsburg came just before a 4 p.m. deadline set by a New York appeals court would have seen the sale completed.

Those 789 Chrysler, Dodge and Jeep dealers that were cut loose by Chrysler as a part of its bankruptcy and restructuring plan have until June 9th (next Tuesday) to part with their remaining inventory.

Porsche has reportedly asked the German government for a $2.5 billion loan, adding to speculation that the automaker is in financial trouble.

A day after filing for Chapter 11 bankruptcy protection, General Motors has announced it has found a buyer for its Hummer brand of SUVs. GM has not, however, named the party.

While President Obama and General Motors CEO Fritz Henderson are both expected to hold press conferences today, officially GM has already filed for Chapter 11 Bankruptcy Protection.

As a government imposed June 1st bankruptcy deadline looms on the horizon, the UAW is reporting that it has reached a tentative agreement with General Motors and the U.S. Treasury.

General Motors will cut 1,124 dealerships loose by October of 2010. The struggling automaker on the verge of bankruptcy sent letters out to the dealerships last week as it searches for ways to reduce it’s current dealer network of 5,969 to just 3,600.

Days after General Motors announced it would cut it’s number of dealerships in the U.S. by 1,124, GM Canada is following suit. The number of Canadian GM dealerships being closed may sound much smaller at 292, however, with roughly 700 dealerships nationwide, the cuts represent a 42 percent dealership reduction.

GM Canada says the Sales & Service agreements it holds with the dealerships will not be renewed once they expire in October of 2010.

GM Canada says it focused on cutting dealerships in urban areas with higher populations, in an effort to continue to offer GM vehicles in rural communities as well. Considering the country’s large land mass and relatively small population, however, visiting a GM dealership after October 2010 may mean a much longer drive for some rural residents.

“The end result in Canada will be a more competitive dealer network with higher volumes, while continuing to maintain the strongest and broadest dealer network in the country better equipped to serve GM customers,” reads a GM Canada statement.

Official release after the jump:

According to the latest bankruptcy court filings by Chrysler, the company plans to cut 789 dealerships (one quarter of the current dealer network) in an effort to emerge as a financially viable company.

According to Automotive Leasing Guide, the resale value of a Chrysler vehicle dropped six percent in the week following the company’s Chapter 11 bankruptcy filing.

From start to finish, Chrysler’s bankruptcy proceedings could take as long as two years, according to a Bloomberg report. The article cites an administration official, and says that the initial period of 30 to 60 days for the “quick and surgical” process only refers to the period required to sell the major assets to a new company.