General Motors Completes Sale of Assets

General Motors Completes Sale of Assets

http://www.nytimes.com/2009/07/11/business/11auto.html

Automobile major General Motors has reached a milestone in its turnaround attempts by completing the sale of its goods assets to a new entity backed by the US government in record time, unimagined by experts. The sale of assets such as Chevrolet, Cadillac and other brands to the new entity to be called the new General Motors is aimed at reducing the auto major’s massive liabilities. While the US government will hold a majority stake of 61% in the new company, the Canadian government, the United Auto Workers Union and some bondholders will be the remaining shareholders. President Obama had promised that GM’s bankruptcy was likely to be a quick one and result in the formation of a leaner and much healthier automobile company. Out of bankruptcy, General Motors will face a tough time in terms of dwindling sales and tough competition.