Iconic US auto giant GM declares bankruptcy

• Source: xinhua
• [21:44 June 01 2009]
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Hoping to reemerge from bankruptcy protection as a new, leaner company within 60 to 90 days, GM will close 11 US factories and idle three others to slash its operating costs. It has been looking to cut 21,000 factory jobs from the 54,000 workers it now employs in the United States.

The GM bankruptcy, along with the previous one of Chrysler, will also lead to the loss of hundreds of dealers and suppliers as well as hundreds of thousands of jobs, dampening US President Barack Obama and his administration's efforts to stimulate the slumping economy.

A piece of news about the General Motors Corp. filing for bankruptcy protection is seen on the front page of a newspaper in Detroit, the United States, June 1, 2009. The largest US automaker, General Motors Corp., officially filed for bankruptcy protection at 8 am EDT (1200 GMT) Monday, the largest bankruptcy protection case in the US industrial history. (Xinhua/Gu Xinrong)

However, an overnight statement from GM China to Xinhua said that the impact of its US parent's bankruptcy "will be minimal to our China business including our operations and sales."

"We will maintain our normal business operations, including our suppliers system, dealers, warranty and customer support operations," it added.