Barack Obama: GM to File for Bankruptcy

On Monday, multiple reports indicate that President Barack Obama will announce that he will support General Motors restructuring effort as the United States automobile maker goes through its bankruptcy proceedings. He’s also reportedly going to announce that the nation’s taxpayers will own 60% of GM once it emerges from bankruptcy.

Will Barack Obama have his hands full with GM? (Image: Flickr)

To help GM emerge from bankruptcy in less than 90 days and be prepared to turn itself around, Obama is expected to announce that GM will be infused with $30 billion. That latest infusion will climb the amount invested in General Motors to around $50 billion.

To survive in the competitive automobile industry, the White House will want GM to be a smaller and more mobile company. Expect to see fewer workers, fewer factories and few dealerships. Also expect to see GM produce smaller cars that offer practicability in terms of price and gas mileage.

General Motors will join Chrysler as U.S. automakers who have been forced to file bankruptcy recently.