GM, Chrysler Restructuring: Bankruptcy and crunch time

By: Peter Chubb | Posted: May 26, 2009 | No Comments
Filed under: Autos

Today will see the gathering of United Auto Workers’ officials to see how many more jobs will be cut at GM and Chrysler factories due to this crunch time in their bankruptcy case. The union officials who represent 54,000 General Motors Corp (NYSE:GM) are due to vote today on a cost-cutting labor deal which was negotiated last week.

The union hopes that they will be able to complete these votes by Thursday. If this contract gets the approval that it needs then this will be one less hurdle that GM needs to clear before its June 1 deadline set by the Obama administration.

So far, General Motors have received $19.4 billion in government aid since the start of 2009, and has since been struggling to reduce its costs and debts so that they can keep on receiving more government aid. Reuters reports that GM admitted on Friday that they need at least another $7.6 billion after June 1.

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