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. ken

    is he the official ceo?

    May 31, 2009 11:52 am at 11:52 am |
  2. clean house

    I feel very bad for the workers

    but all involved please understand, while no one should be out of work, the car industry has been doing a very poor job for years and years at the executive level

    it is completely NOT FAIR, but a restructuring and starting over at the competitive and strategic level is necessary

    May 31, 2009 11:53 am at 11:53 am |
  3. You Know me

    Presidents now announce private company bankruptcy announcements? This slide to socialism is happening at breakneck speed. Welcome to the United Socialist States of America.

    May 31, 2009 11:55 am at 11:55 am |
  4. Proud DHS radical

    And just how many billions of the US tax dollars did Obama gave GM in trying to prop them up? When the common sense thing was to let GM file bankruptcy in the first place. There should be an accounting as to where every dime this administration gave GM went to.

    May 31, 2009 11:56 am at 11:56 am |
  5. katiec

    The is a good move for GM. Perhaps they will be able to restructure and get back to the great auto maker they once were. For too long rather than listen to or acknowledge our wants and needs they
    felt they knew what was best, and they were wrong.
    Our country cannot allow our automobile manufacturers go under.
    It would be diasterous as they are one of what is still being mostly
    manufactured in the U.S. We cannot afford to lose all industry.

    May 31, 2009 12:00 pm at 12:00 pm |
  6. Whay is Obama involved?

    I did not know that Obama was the CEO of GM. I thought he was the President of the US. This is a free capitalistic marketplace, and what Obama is doing is DEAD SOCIALISTICALLY WRONG

    May 31, 2009 12:03 pm at 12:03 pm |
  7. its not that hard to understand

    Obama is making the announcement because the governemnt tried to help and in the end it was fruitless. i think its a responsible thing to do considering the government did get involved. and as a taxpayer i appreciate it.

    May 31, 2009 12:03 pm at 12:03 pm |
  8. Socialism and Cronyism at its worst

    When workers at a US company (UAW) get a bigger slice of the pie then unsecured bond holders, then the law of this country has been broken. What is Obama is doing is wrong, and by paying off the UAW for their support, he is hrting countless millions of individual bond holders who by law should be in a more senior psotion than workers. This GM Cop d-Etat by Comrade Obama is an afront to the US free capital system and it will send chills and doubts to millions of would be unsecured investors of other large companies in the US. Obama is destroying our free market system for the sake of the Unions - This is wrong – it is dead wrong – it is depression invitingly wrong. By the end of Obama's term. China will own 35% of the United States and we will all be speaking French

    May 31, 2009 12:07 pm at 12:07 pm |
  9. 60's survivor

    it will all come out in the wash. despite all the sideline critics. the hope is that the industry and this country learns from this. in the meantime it's us worker bees that will really pay the price. still.....

    May 31, 2009 12:07 pm at 12:07 pm |
  10. Sarah

    To Proud DHS- Bush had been giving GM money for a full 8 years since he was in office. If he had been hard on them then, maybe they could have been spared from filing bkrupt. during a reorg.

    May 31, 2009 12:10 pm at 12:10 pm |
  11. Dawn in Pa

    Here we go again calling Obama a Socialist, do you know anyone who went bankrupt? Are they socialist? Welcome back Sen Joe McCarthy.

    GM is filing bankrupt is because if YOU, right wingnuts remember Bush bailed out the Auto makers and they were to restructure or belly up, Obama wants this Big three to succeed, but that is about 30 odd years too late. Remember the oil embargo, the three were to make gas efficient cars, well that did not last too long.

    Going Bankrupt is to restructure and to make better cars and yes i do feel bad about the workers, but even under a Bankruptcy you can continue business as usual.

    May 31, 2009 12:15 pm at 12:15 pm |
  12. I used to like CNN but not anymore!

    Good thing we gave them all that money, just to have them file for bankruptcy anyway! Which is what they should have done right from the very begining! One HUGE waste of time, money, and energy in my opinion! It's obvious that our Government suffers from one collective "brain fart" after another and I for one am quite tired of it!

    May 31, 2009 12:17 pm at 12:17 pm |
  13. Truth-Bomb Thrower

    Step numer one to getting "Government Motors" back on its own two feet is to get the UAW's claws out of it. The unions have totally destroyed the auto industry in this country.

    May 31, 2009 12:19 pm at 12:19 pm |
  14. Proud Moderate

    all of those tax dollars to gm...wasted.. This company should have declared bankruptcy a year ago. GM cars are crap...did you know almost 60% of GM cars are made in Mexico or Canada? yea that's real American for yea.. I'll stick with my superior American made Honda or Toyota

    May 31, 2009 12:21 pm at 12:21 pm |
  15. Thomas

    Why is the President of the United States making this announcement? Companies go in to chapter 11 all the time without the President making the announcement.

    May 31, 2009 12:26 pm at 12:26 pm |
  16. Mich

    If they would build more inexpensive cars maybe people will buy them. But I understand what goes into the cost of a GM car. Labor 25 dollors a hour I guess. And don't forget we have to pay for their medical cost till a worker dies. And what they even get their almost full salary till they die. GM give me a break with your old guide lines, and the goverment forcing you to build a better gas milage cars. Middle class still will be unable to afford your cars........... Just fold up know.........I'll just keep driving my VW.

    May 31, 2009 12:26 pm at 12:26 pm |
  17. Chtei

    GM has made terrible business decisions for the last 20 years, does this come as a surprise to anybody? They should have went into bankruptcy years ago to renegotiate and start producing cars with more than 12 MPG and sustainable deals with their unions. I'm curious to see what happens with Ford.

    May 31, 2009 12:28 pm at 12:28 pm |
  18. JJ

    Why doesn't the CEO make this announcement?? Oh yea, Obama IS the CEO, never mind....

    May 31, 2009 12:30 pm at 12:30 pm |
  19. stag

    More troublesome than the bankruptcy is BHO, the new CEO ( aka our chief mesiah), is makeing the announcement. This deal has Hugo Chavez written all over it. No more GM or Chrysler for me, my business will go to Ford or the Japs.

    May 31, 2009 12:34 pm at 12:34 pm |
  20. HJA

    Socialism and Cronyism at its worst
    "By the end of Obama's term. China will own 35% of the United States and we will all be speaking French"

    Sorry but Bush / Cheney put us where we are before Obama. They threw money to the war machine and their cronies. At least Obama is trying to spend it here. If we were French we would have the #1 rated health care system and our children would be guaranteed an education.

    May 31, 2009 12:41 pm at 12:41 pm |
  21. Ted Tartaglia

    You right wing zealots are calling Obama a socialist for trying to rescue the free market. First, who started the bailout of Wall Street, the banks, AIG, and the automakers? I believe it was Bush and Paulson. It was greedy free marketeers who brought the free market capitalism to its knees with Republican support.

    You wing nuts clamor for self regulation and say the free market will take care of itself. Well, explain why the free market is broken. The Republican idea of capitalism is to socialize the risk and privatize profits. I don't think the taxpayers will buy that strategy.

    Why don't you neocons do something useful instead of trying blame Obama for the problems the Republicans caused. It was Republican greed that caused the problem along with Republican off budget spending and irresponsibly using the national credit card. Republicans are the ones who are destroying our children's and grandchildren's future by saddling them with huge debts, not Democrats.

    May 31, 2009 12:43 pm at 12:43 pm |
  22. Mike TX

    It's Obama arrogance at its best. The man thinks he knows more than anybody else on any topic. He thought Wagoneer couldn't run the company, so they forced him out. Good to know that the "change of direction" only prpolonged bankruptcy a few months and cost you and I billions more dollars. I'm sure all this is Bush's fault though.

    May 31, 2009 12:43 pm at 12:43 pm |
  23. Mike, Syracuse, NY

    Why the heck is the President of the United States announcing the bankruptcy of a US company? It just shows how far down the path of socialism we have come in just a few months.

    May 31, 2009 12:48 pm at 12:48 pm |
  24. Larry from RI

    GM ceased being a private sector corporation the second they took our taxpayer money.

    Now we, the taxpayer, own 70% of GM and as owners the American taxpayer has a 70% say in this matter.

    GM is a prime example of a US corporation run into the ground by incompetent leadership so stop trying to lay the entire blame on the unions.
    Unions did not design GM's crappy cars or push GM's gas guzzling pigs while gas was going through the roof. BTW – have those of you who are old enough to remember sitting in gas lines during the 70's shortages seen any change in US automakers products or "vision" since then?

    May 31, 2009 12:53 pm at 12:53 pm |
  25. ML

    What arrogance to think that it is the responsibility of this preseident to annouce the Bankrupcy of GM. His medding in Private Businesses is out of control. Or should I say a way for him to grab more control.

    Is the GM Obama HyBrid on the way? Just like a hybrid Obama is powered by two different paths, The one reads off the teleprompter, and the one he actually makes happen.

    He has no place in this.

    May 31, 2009 12:57 pm at 12:57 pm |
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