General Motors (GM) is a multinational automotive corporation based in the United States with headquarters in Detroit, Michigan. GM manufactures brands such as Buick, Cadillac, Chevy and GMC.c

In May of 2009, GM confirmed plans to sell or close four of their brands. These included the Saturn, Hummer, Saab and Pontiac.c General Motors also notified 1,100 of its 6,000 dealerships that their contracts with GM would be terminated. The notifications marked the first step to cut 40 percent of GM's retail network, reducing U.S. dealers from 6,200 to 3,600 by the end of 2010.c

On May 27, 2009, the GM corporation offered bondholders company stock in exchange for bond debt. The offer (10 percent of company stock for $24 billion of unsecured debt) came as executives at the embattled car-giant tried to make restructures ordered by the federal government. However, bondholders rejected the offer, which was part of what would lead the company into bankruptcy.c

On April 13, 2009, the U.S. Treasury Department directed GM to file for bankruptcy by June 1 if the company was unable to reach an agreement with the bondholders to exchange $28 million of debt into equity, as well as with the United Automobile Workers.c

On June 1, 2009, GM filed for bankruptcy under Chapter 11. On July 10, GM and the government signed the official paperwork to end the 40 days of Chapter 11 bankruptcy protection.c 

The move divided ownership of the company into many parts, with the U.S. government taking the largest share, followed by the United Auto Workers and the Canadian government. The bankruptcy plan also included the shutdown of several plants, the layoff of over 20,000 workers, cuts in retirees' health benefits and the loss of the company's place on the Dow Jones Industrial Average.c 

The long term plan for 2012 is to lay off over 30,000 employees out of a total 96,000. Since filing for bankruptcy in 2009, starting salaries have dropped to less that $30,000 a year.c

GM released a statement on March 29, 2009, announcing that CEO Rick Wagoner was resigning and Fritz Henderson would take his place. The resignation was at the request of the Obama administration.c 

The following day, President Obama said the government had "no intention" of running GM, but required a "better business plan" before lending additional funds.c Fritz Henderson resigned that winter and was replaced by Edward Whitacre.c

In December of 2009, Chris Liddel, former CFO at Microsoft, became the CFO of GM, replacing Ray Young.c

In 2008, sales of General Motors' vehicles fell nearly 11 percent. According to figures released by GM on January 21, 2009, global sales in 2008 dropped to 8.36 million vehicles. Toyota reported 2008 sales of 8.97 million—giving the Japanese automaker the title of world's largest automaker for the first time. GM had previously held that title for nearly 80 years.c

On December 24, 2008, the Federal Reserve approved the request of the financial arm of GM, GMAC, to become a bank holding company. The move would allow General Motors to use the funds available in the TARP (Troubled Asset Relief Program), the $700 billion fund that has been set aside for the purpose of bailing out the financial markets.c

The company received a federal loan of $13.4 billion from the government in December 2008. On February 26, 2009, GM posted a $9.6 billion net loss for the fourth quarter of 2008, bringing the total loss for 2008 to $30.9 billion.c

On February 3, 2009, GM released information from its viability report. Part of their plan to reduce expenses focused on offering early retirement to workers who were qualified. The retirement buyout program would offer up to $50,000 in cash and $25,000 in car vouchers to participants.c

On February 10 of the same year, GM announced plans to cut 10,000 salaried jobs worldwide as part of a massive restructuring plan in exchange for bailout funds.c Two days later, GM officials confirmed that the company would offer all of its 62,000 hourly workers voluntary buyouts or early retirement packages.c

The maps at right are where GM has had factories worldwide.

• 1908: Founded by William C. Durant in Flint, Michigan, as a holding company for Buick on September 16.
• 1909: Durant acquires numerous auto companies, including Cadillac and Oldsmobile.
• 1910: Durant loses control of company due to large debts.
• 1961: Does away with clear performance distinctions between its different brand names.
• 2001: Starts the Keep America Rolling campaign in the wake of the 9/11 terrorist attacks, kickstarting other manufacturers to boost sales.
• 2007: Operates over 8,000 dealerships in North America and over 14,000 worldwide.
• 2008: GM announced that it would cut North American production by 250,000 new units on December 12, a 60 percent drop from the previous year.c
• 2008: GM and Chrysler receive $13.4 billion in federal loans from TARP on December 18.
• 2009: CEO Rick Wagoner is forced to resign on March 29 and GM files for Chapter 11 bankruptcy on June 1. The following day, Hummer is sold to China's Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd.