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NINETY EIGHT REGENCY

Anniversary of GM's filing sees brighter days

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Anniversary of GM's filing sees brighter days

BY TIM HIGGINS

FREE PRESS BUSINESS WRITER

In many ways, it feels like a lifetime ago.

A year ago today, all eyes focused on a Manhattan bankruptcy court where the once unthinkable, was, in fact, occurring: General Motors filed for bankruptcy.

U.S. financial history was made.

The government-backed restructuring, which took an amazingly fast 40 days, would cost billions of dollars, take thousands of jobs, close hundreds of dealerships, leave stockholders and debt holders with huge losses and place the U.S. Treasury in the position of owning a majority share of the nation's largest automaker. All of this was done to lower costs and make the company competitive again.

Without the government's help, the Center for Automotive Research had projected up to 2.5 million jobs could be lost if GM were allowed to fall into an uncontrolled bankruptcy, possibly pushing the troubled U.S. economy into another Great Depression.

Since filing for bankruptcy, the company hasn't had it easy. But there have been some signs of early success. During the first three months of this year, GM turned its first quarterly profit, of $865 million, since 2007, U.S. sales are up 14% from last year's dismal results and the company's Asia Pacific operations are on fire.

"It's just a totally different world that's emerged in a short time," David Cole of the Center for Automotive Research, said.

Yet a lot of work remains to return luster to GM. In order for taxpayers to recoup their money, the automaker must get into a position where it is selling stock again -- perhaps as soon as late this year.

link:

http://www.freep.com/article/20100601/BUSINESS01/6010320/1331/business01/Anniversary-of-GMs-filing-sees-brighter-days

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I'm hoping for the best. I just can't stay mad at GM when I see 5th Gen. Camaros & Cadillac CTS almost every day.

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