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. skyhawkdriver

    And just how much of my tax money went to bail out general motors??..or is it government motors now..and can I write that waste of my money off on my taxes?? what is obumbler now,the new ceo and chief designer??..socialism continues to rise and spread like the poison that it is..I hope all you dimwitocrats are happy you voted for this bumbling buffoon

    May 31, 2009 12:57 pm at 12:57 pm |
  2. harry

    We must gather our forces, once again, and beat down the repub party of right wing-nuts. Who is going to listen to these nut jobs who are run by Rush and Newt, the worst or the worse? Until these wacko
    right wingers are booted from the repub party, the repubs will never be back in power. Let's hope they keep these morons from the far right forever.

    May 31, 2009 12:57 pm at 12:57 pm |
  3. Dave

    Mr. Obama, stop acting as though you are Emperor. A corporation filing for bankruptcy protection (even if it's General Motors) is a corporate decision, not a political decision. Yes, you gave GM millions and millions of the taxpayers money – for that, you should be ashamed. Your attempts to subvert contract law are becoming more and more clear; your intention to nationalize all business is wrong-headed. If you want the economy to work, then stop governmental involvement. Regulations on actions are necessary, but if you continue micromanaging businesses, this will all end in tears.

    May 31, 2009 01:02 pm at 1:02 pm |
  4. indy

    Well, so much for the bailouts precluding the bankruptcy we couldn't afford to let happen (though President Bush was in office, this was something all of Congress thought we couldn't afford, I believe that included Senator Obama). I can hardly wait for what comes next. I'm sure the unions won't lose a dime, but those greedy investors that put money in the company will no doubt be forced to settle for a pittance of what they put in the company. It's only fair afterall, that's the risk they chose to take. I'm seriously wondering what people will want to risk an investment in. Banks can lose, an industry can lose, where's the incentive? Also, why is President Obama announcing this and not the CEO of GM? Isn't it still a private company? Well, until the announcement I guess.

    May 31, 2009 01:05 pm at 1:05 pm |
  5. Robert

    everyone can cry,cry,cry about whats going on. we all know whats going on, Heres an idea, what if we all started coming up with and voicing solutions, for years people, our so called american big three auto makers, have farmed out to other countries, over half the parts and pieces that make up our automobiles, think of this, what if we brought back to the U.S. all of the companies our corporations have been allowed to move to other countries, only for greed. All the stimulas money that did nothing at all,but make a hand full of very rich people even richer, could have funded 1000's manufacturing plants, and at the same time drop our unemployment lower than we have seen it in a long long time. Its time to stop stimulating the economy of every other country on earth, wake up lets been it back to the UNITED STATES of AMERICA

    May 31, 2009 01:09 pm at 1:09 pm |
  6. Independent thinker

    So what happens to all the money we gave them?

    May 31, 2009 01:22 pm at 1:22 pm |
  7. Old Salt

    Gee, I wonder what all of the GM lawyers would do if they didn't have Mr obama to hold their hands for them.

    May 31, 2009 01:23 pm at 1:23 pm |
  8. Dee, NJ

    Pres "O", you not CEO of GM. Nixon/Ford was there and not get do right. Carter, Reagen, Bush Sr, Clinten, and Baby Bush. Your are the Frist to say, "I Don't Cry Baby".

    May 31, 2009 01:24 pm at 1:24 pm |
  9. voter

    ML and others who believe the President has no place in announcing this. GM is having a press conference to announce the bailout. The president is not making the announcement. He wants to clarify to people what the bankrupcy means in terms of employment etc. Last time I checked, people want the president to discuss employment issues.

    May 31, 2009 01:26 pm at 1:26 pm |
  10. carolflowery

    i cant believe bush is still getting included on these blogs, obama partied in new york and went on 3 of our corporate jets but it's just fine for this great company to file bankrupcy and put more workers out of jobs, just think of all the other industries that will be affected as well, like tire companies and many others

    May 31, 2009 01:31 pm at 1:31 pm |
  11. Trang

    Now, I must admit I have never bought American cars before. I might consider purchase one just because they are in such a rut ... but they have to make it affordable and durable, and I am not a fan of big car and gas guzzler. Can it be done? I was planning for a Toyota Prius, what's the equivalent for American car?

    May 31, 2009 01:32 pm at 1:32 pm |

    Yes I'm a Republican who voted for Obama.....I'm glad he tried to help Chrysler, and GM.......they both will restructure, but many jobs will be lost....One thing that is not needed are conservatives who called for allowing the big 3 to fall during the early economic turmoil of late 2008, early 2009 (which would have really crushed the markets), to act concerned about the workers now........Hypocrites!!!

    May 31, 2009 01:33 pm at 1:33 pm |
  13. Bankrupt and loving it

    Is the US economy too big to fail?

    May 31, 2009 01:33 pm at 1:33 pm |
  14. MatthewDetroit

    I cant believe that we are not only allowing but supporting the president to take over our autocompanies. Just because the goverment set up loans DOES not mean they should have ownership. This is very wrong that this is acceptable to people. It is a very terrible time in the countries history.

    May 31, 2009 01:35 pm at 1:35 pm |
  15. JT

    Why shouldn't Obama meet with American citizens to let them know that GM is filing for bankruptcy. We, America, owns about a 70% stake in the company now. The shareholders, us, should at least be addressed.

    May 31, 2009 01:36 pm at 1:36 pm |
  16. MatthewDetroit

    Those GREEDY investors as you say that invested in the automotive companies. hahahahah.
    Yep the INDIANA STATE TEACHERS UNION. those dirt bag high risk gambling teachers who invested their pensions in Chrysler and GM are losing their butts....
    Good for them, too bad they are not part of the UAW they would get a piece of the company. Too bad we are creating bigger goverment and goverment control.
    Look how well high taxes and high spending, tree hugging, sheltering illegals works in California. They know what they are doing as well.

    May 31, 2009 01:40 pm at 1:40 pm |
  17. MatthewDetroit

    The answer was too let the companies file for bankruptcy and for Barack Obama to stay the heck out of it. Keep your hands out of our companies Barack. You are stealing from the US and spending us into the ground.
    Stop spending money. Cut the budget. Cut welfare spending. Stop health and human services spending.
    DO NOT add 1 million jobs to the goverment payrolls.

    May 31, 2009 01:43 pm at 1:43 pm |
  18. zalgo

    Wait, what? since when is it the responsibility of the President- a PUBLIC position- to make announcements for GM- a PRIVATE company?

    Doesnt GM have its own president?

    And Im not saying this out of sarcasm- I am truly wanting to know because the last time a sitting president got involved in the private sector was with Reagan and the air traffic controllers and I remember all the Liberals lost their minds screaming about "here comes the new Socialism..." etc.

    Course they lost their minds too when Bush was in bed with Diebold and the gulf-war businesses but how soon we forget...

    Drop this single partisan nonsense and realize that Bush=Obama and vice versa.

    Youre all fools.

    May 31, 2009 01:47 pm at 1:47 pm |
  19. Trang

    Since we have tried to bailed out GM and owned a substantial share of it, I suppose that's why Obama is speaking and not some CEO. Why did we do it? Well, during the campaign – he has said he doesn't like this 'you're on your own' mentality. We are our brother's and sister's keepers. I voted for him because I like this notion – 'we are our brother's and sister's keepers'. He doesn't want to control, but if they need help, he will try to help. That is his core principles. So, GM wasn't strong enough to come out with all the bail out money, but they know we are trying to help them, not leave them out in the cold as in the 'you're on your own' mentality. It's not just the money, it's the spirit as well.

    May 31, 2009 01:47 pm at 1:47 pm |
  20. FML

    Some important things to remember: Without the government's support, there would be no more GM. Every person on that assembly line, each of their families, would be unemployed as of tomorrow. Now, if you support that happening, then fine.

    Second, government investment in private companies is nothing new. Amtrak, every airline, farm subsidies (including payments made to farmers NOT to plant something - talk about hypocracy. Farmers love their subsidies but vote against the party that will increase them), have been around for decades. What's different here is that the government made a bankruptcy demand in order to get the funding, because GM was never going to do it on its own, which is just another bad decision in a long line of them by GM's leadership.

    Third, GM is part of the Dow Jones Industrial Average. This thing has been falling like a brick for months now, pulling down the Dow Jones even as other companies have begun recovery. The Dow is what the external market sees, and is a measure of the US economy. Getting GM off the Dow is a great "visual' benefit to the market.

    Finally, just maybe, do you think GM might come out of this a stronger, more competitive company?

    May 31, 2009 01:48 pm at 1:48 pm |
  21. conservative

    I am going to remember the shabby treatment the politicians doled out to GM while bailing out all those greedy banks ! GM is about as American as any entity in this country and deserved better! So all you dopes go ahead and buy from the japs etc. See how they will put forth in defense of our homeland as GM did in several conflicts. GM goes how far behind is the rest of the country?

    May 31, 2009 01:49 pm at 1:49 pm |
  22. Chris

    Everybody's asking "Why is obama making the announcement?" Ever heard the phrase - "As GM goes, so goes the nation?" This is an enormous failure which have huge impacts on every sector of this nation. I would expect no less than for the president to make a statement on something so critical.

    May 31, 2009 01:50 pm at 1:50 pm |
  23. Had It

    Bet the men at the top of GM take their bonuses before all this happens.

    May 31, 2009 01:57 pm at 1:57 pm |
  24. Trang

    Some people may say that Obama is meddling. Heck, we have put substantial amount of money in it. Might as well help to make it work and help it be successful. At least Obama remains engaged and tried to be helpful rather than 'disengaged' and 'not my problem' attitude. Of course, this is a philosophical difference. I like to live in 'caring' country. Is this 'socialism' that Republicans are complaining of?

    May 31, 2009 01:58 pm at 1:58 pm |
  25. Republicans are the American Taliban

    No one is blaming the responsible party here...the UAW refused wage and benefit concessions. Years of going on strike for higher wages, and electing the mafia to represent them,and investing pension money in casinos, finally killed GM. They bled it dry....

    May 31, 2009 01:58 pm at 1:58 pm |
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