General Motors filed for Chapter 11 bankruptcy protection on Monday. Shortly after the announcement, President Obama tried to reassure taxpayers, who are effectively shelling out an additional $30 billion in return for a 60 percent stake in the company, according to the new restructuring plan. The “new GM” will shed 21,000 more employees and shut down 12 factories and 2,600 car dealerships.

Detroit Free Press:

President Barack Obama today hailed the government-led bankruptcy and restructuring of General Motors Corp. as “the end of the old GM and the beginning of a new GM,” even as he warned of its cost in taxpayer money and jobs.

Combined with the approval of Chrysler to be sold to Fiat, Obama said, the strategy of quick bankruptcies would result in stronger automakers who could compete on a global stage, and lead the world in developing fuel-efficient vehicles.

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Also, here is a New York Times article that might answer some of your questions about the GM bankruptcy case.

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