May 31st, 2009
12:50 PM ET
13 years ago

Obama to discuss GM bankruptcy filing

[cnn-photo-caption image= caption="Obama is set to announce the bankruptcy of GM."]
WASHINGTON (CNN) - President Barack Obama will hold an 11:30 a.m. Monday event discussing the bankruptcy filing of General Motors, according to two officials close to the talks.

The officials said that GM is expected to officially file the paperwork on the bankruptcy earlier in the day. Obama will then explain the rationale for the filing and his hopes that this is the best route for a turnaround.

The president made a similar announcement after Chrysler, another of the Big Three automakers, filed for bankruptcy protection on April 30.

But the officials cautioned that the situation remains "very fluid," so it's still possible that GM will technically file the paperwork after Obama speaks.

The expected bankruptcy filing comes despite an agreement reached last Thursday with the Treasury Department and a committee of major bondholders.

The beleaguered Detroit-based automaker has been struggling to survive under the weight of the recession and high fuel prices, which have drastically reduced sales.

GM's stock price plunged below $1 a share Friday, reaching its lowest level since the Great Depression, as investors anticipated the bankruptcy filing.

The company's stock peaked on April 28, 2000, when it closed at $93.63.

Filed under: President Obama
soundoff (74 Responses)
  1. Pat, CA

    Wow! Another Obama "success" story!!!!!!!!!!!!!

    May 31, 2009 02:02 pm at 2:02 pm |
  2. Simmy

    You know me and the posse,

    You can't blame President Obama for all the woes in America......The word on the street is that FP Bush was aware of the meltdown, but was hoping to keep it under wraps until he left office and let Pres. BO take the blame......Although he (President Obama) is still getting a bad rap for trying to sweep all of the dirt from under the rug, he's doing a wonderful job....McCain would have caved in the first 30 days with a nervous condition and we'd be stuck with Palin, who would have had US fighting the conferacy of Texas, fighting Somalia for letting pirates board an American vessel, and her kids would be going to school in the official helicopter, to name a few disasters we'd be suffering through....Thank God for shrewd savvy voters and President Obama........

    GM and Chrysler will be fine.....All things tend to work out for good......

    May 31, 2009 02:02 pm at 2:02 pm |
  3. TCM

    Is he going to announce the bankruptcy of his car company before or after the squanderin of $10's of thousands of dollars to take the American-hating First lady(?) to eat in NYC at taxpayer expense?

    Liberals sit back and suck it up....and are so smitten by the pupper, GM, after the financially incompetent Obama has soaked billions into it....will reorg like they should last year...and then obama, will pour in more money to make green cars, while he raises gas prices on the rest of us to try and coerce us to hybrids..(which pollute with their huge battery waste, by the way).....such a clever hand played by the street organizer...

    May 31, 2009 02:11 pm at 2:11 pm |
  4. GM is now Obama Motors....

    and they're starting off by laying off 21,000 workers--I guess that will teach the UAW about backing Obama in 2012-

    May 31, 2009 02:20 pm at 2:20 pm |
  5. eric in texas

    Thank you to Obama and the rest of the retarded Democrats who pushed a stimulus bill to bail out banks, GM, Chrysler, etc even though most economists said it wouldn't work. Thank you for not allowing the auto industry to file Chapter 11 months ago and instead shoveling my children's tax dollars into their inept hands. Thank you so much for taking a few days to push through a bill, instead of taking a long hard look with lots of investigations. Thank you Mr. President for blindly signing a bill that you were ignorant of (shocking huh?).

    But hey, the stimulus bill will still help give cable TV converter boxes to the less fortunate (we absolutely need this for the stability of our economy...Opra needs her ratings) and Nancy Pelosis's but frog project will be ok.....we hope.

    For all of the bashing you have done on Bush for his misspending, your Messiah is shattering those numbers in his first year and the money is slipping down the toilet. Oh yeah, he is also gonna pump billions into a foreign war....just a new you guys....

    May 31, 2009 02:20 pm at 2:20 pm |
  6. susie

    Are we even going to have another election in 2012 or will Obama appoint himself KING for the rest of his life? He will make it so that the public won't have anything to say anymore. He will dictate what type of car we drive, how we live, and whether we are deserving of health benefits. All old people who need surgeries will be out in the cold. What did the people vote for in 2008? The life we knew will no longer exist.

    May 31, 2009 02:20 pm at 2:20 pm |
  7. skyhawkdriver

    I have it on good authority that joe biden wants to ressurect the edsel..let it operate for six months..take a federal bailout and go bankrupt..then the messiah obumbler can say he created 50,000 new jobs..leave it up to good old joe..of course with obumbler at the helm of government motors maybe he can just name a car after joe..

    May 31, 2009 02:22 pm at 2:22 pm |
  8. 20,000+ workers out the door....

    I love it......the UAW voted for Obama and he stuck it to them GOOD!!!!

    May 31, 2009 02:22 pm at 2:22 pm |
  9. w.l. jones

    Over the years I had work with numeral company under bankruptcy and all the while it kept food on my family table. Just think of all the family thoughout this country depend on GMC for there family livleyhood!

    May 31, 2009 02:23 pm at 2:23 pm |
  10. Roger

    GM Bankruptcy is based upon Basic Principles of Econmics.

    Spend more, Earn Less = Bankruptcy

    Export less, Imprort more = Trade Imbalance

    May 31, 2009 02:39 pm at 2:39 pm |
  11. Michele

    If the car makers would have jumped OFF the HUMMER bandwagon after two years, they would not be in this mess. We lived in car country from 2001-2004, and we saw the too big vehicles being driven short distances all the time. Who exactly needs all those GM trucks and gas hogs? When the technology was available, they should have at least diversified enough to make a hybrid 10 years ago. There was, and is, a market for smaller cars and good mileage.
    Had the car companies used a better business model, there would not need to be mileage requirements put in place by the government. it isn't even a question of greenhouse gases, it's just a question of being intelligent. Why use more than you need? I don't have much sympathy for these folks...and the workers? Well, I'm sure the union is taking good care of them...they pay dues, and when they are laid off, they get a good percentage of their pay anyway.

    May 31, 2009 02:45 pm at 2:45 pm |
  12. Dan, TX

    Seems like most people posting here are uninformed, as usual. Pity. But the point of this is for people to vent their frustrations so they feel better so they can go back to their docile useless existences.

    May 31, 2009 02:53 pm at 2:53 pm |
  13. Bs

    Well done, another trillion dollar write off.

    May God have mercy upon each one us !

    May 31, 2009 02:55 pm at 2:55 pm |
  14. Chenna Benna

    People can try to blame President Obama for coming out and explaining to the American people what is going on with GM all they want to. It is his job during these difficult times to explain to us why one of our biggest manufacturing companies has failed and what is going to happen to it. Would the same people who criticize Obama for explain this situation to the American people rather he do what Bush did when our economy collapsed and just give a two minute speech from the Rose Garden, not take any questions about it, and not give any more speeches about what is being done to fix the problem? I wonder what they would say then.

    May 31, 2009 03:03 pm at 3:03 pm |
  15. Tatianna

    During Obamas transition to the White House, he met with Bush and asked him to bailout GM. Bush did not bailout GM, he left that problem for Obama admin to deal with. Economic freedom under assault – Obama forced GM CEO to resign. Cradle to Grave Socialism. This is why dictatorships always fail next to free markets. Obama has no clue what hes into, and naive to the challenges. Obama and libs in DC is heading towards harsh lessons: They are the servants of the people, not the other way around.

    May 31, 2009 03:14 pm at 3:14 pm |
  16. vincent

    Its not a question whether the cars are made in Mexico or Canada actually the cars are well built. Its the fact that there has overabuse ,greed mass at the expense of previous Republicans behaving like Socialist, I say these idiots brought the world economy to a standstill. Beside GM past management lost its sense of Americans wants, so the Japanesse are more American than GM since America wants Quality. Totally disgusting Republicans and excessive GM/Corporate greed and religious hooplah.
    Complaint by the Independant Conservative

    May 31, 2009 03:24 pm at 3:24 pm |
  17. Lori

    Yet another victim of Bush and the Republicans leadership for 8 years like the rest of us. I guess GM would be considered 'collateral damage' to the Republicans, huh? President Obama has tried to help and I hope that this will give GM the ability to come back stronger in the future, somehow.

    May 31, 2009 03:26 pm at 3:26 pm |
  18. Willy Brown

    You doing a great job Mr. Resident of bankrupting the United States and it all started when your party took over in 2006. 2010 the adults will be back.

    May 31, 2009 03:35 pm at 3:35 pm |
  19. Hammer

    What about that "hope" and "change"?
    Not what you expected huh?

    May 31, 2009 03:38 pm at 3:38 pm |
  20. greg

    If it was Bush who was doing this the union idiots would be screaming that the rich repulican are screwing the working man you dumb ass liberals need to wake-up its the democrats who screw you and not the rich repulican Bush should have let both company go belly up then we would not have this sicking display that the prez and his liberal cohorts are pulling on Monday to show you how much they care. All i can say is turn around and grease it up because here it comes idiots!

    May 31, 2009 03:41 pm at 3:41 pm |
  21. greg

    if anyone wants to see the must stupid statement go read the one that sarah sent. hey baby bend over and grease it up because you are the stupid idiots i talk about. dumb liberal.

    May 31, 2009 03:49 pm at 3:49 pm |
  22. greg

    Hey Dawn if Bush would not have done it stupid people like you would have see right wing nuts are against the working man you are just like the rest of the idiots bend over baby here it comes. And i will say this if the truth was staring you in the face idiot liberal would still blame bush hell after O gets done screwing up everything it will still be Bushes fault.

    May 31, 2009 03:55 pm at 3:55 pm |
  23. greg

    I can not dothis any more their are just too many stupid people here.

    May 31, 2009 03:57 pm at 3:57 pm |
  24. Rodney

    Very interesting how the current administration is being blamed for the past 30 years of greed. Maybe if the individuals that ran the companies for all of these years placed the profits into secure accounts for all of the promises they made to the workers they wouldn't be in the position they are currently in. Maybe if the individuals in charge learned from the oil crisis in the 1970's like the Brazilians did they wouldn't be in the position they are in. By the way the hybrid vehicles that are currently in production are made by GM. What the current administration has done by trying to provide support to the automakers is to live up to the promises made to the workers for the one commodity you can never recapture, TIME!

    May 31, 2009 03:59 pm at 3:59 pm |
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