US treasury will now own 60 per cent of the new firm after the bankruptcy judge agrees the sale
6 July 2009

GM has had its bankruptcy sale approved by a judge in the US, a move which will create a new company based on GM’s best assets owned by the US treasury.

The sale is now expected to go through formally on Thursday after a four day stay of order process, which will allow any appeals to be lodged.

Twitter - follow

Judge Robert Gerber said the sale would “prevent the death of the patient on the operating table.” He said: “GM cannot survive with its continuing losses and without the governmental funding that will expire in a matter of days.”

Under the terms of the deal, new GM will be 60 per cent owned by the US treasury and will include assets including Cadillac and Chevrolet.

“The US treasury, in making hard decisions about where to spend its money and make new GM as viable as possible, made business decisions that it was entitled to make,” said Gerber.

“As nobody can seriously dispute, the only alternative to an immediate sale is liquidation - a disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates.”

GM’s unwanted assets, including unpopular brands and unneeded factories, will remain in court to be liquidated.

See all the latest Chevrolet reviews, news and video

Mark Tisshaw

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • First Drive
    21 March 2018
    The new Vantage has been developed as a Porsche 911 beater, and our first taste on UK roads suggests it can live up to that bold claim
  • Nissan Leaf Tekna
    The is the new Nissan Leaf
    First Drive
    21 March 2018
    The new version of the world's best-selling electric car gains a bigger battery and more power. How does it compare to rivals such as the Volkswagen e-Golf?
  • Range Rover p400e
    First Drive
    20 March 2018
    The original luxury SUV is now available as a plug-in hybrid, promising lower emissions and the capacity for silent electric motoring
  • BMW i3s
    Car review
    20 March 2018
    Revised hatchback sets out its range-extended electric stall in a new, sportier tune
  • BMW X2
    This is the new BMW X2
    First Drive
    20 March 2018
    Doesn’t deliver many typical crossover selling points but looks perky, handles keenly and is well capable of winning over your latent cynic