Now, this may be a really big piece of news if it comes to pass. Apparently, GM is so heavily burdened with debt that it may move out of the motor city. Michigan already has a really high unemployment rate, especially Detroit, and this could be the straw that economically cripples the state.
It also appears that the auto giant may likely declare bankruptcy. Now, the CEO of GM was already fired by the government. Does this mean that the government may nationalize the auto industry? With big names like Oldsmobile and Pontiac already down, an activist government may see it as the only solution.
In the meantime, GM's shares have fallen by 10% to under $1.50.
GM owes $27 billion dollars and may close six plants. The UAW will own 39% of the stock. Also:
The company also plans to notify dealers later this week about its plans to reduce their ranks by about 2,600 by 2010. The company has 6,246 dealerships, many of which are not profitable because of lower sales volumes.
Not good times in Motown.