TIMELINE: GM heads for bankruptcy

Posted at 06/01/2009 6:43 PM | Updated as of 06/01/2009 6:46 PM

June 1 - General Motors Corp (GM.N) will file for bankruptcy later on Monday, U.S. officials said, forcing the 100 year old automaker, once a symbol of American economic might and dynamism, into a new and uncertain era of government ownership.

Here is a timeline of the auto industry's recent struggles:

Oct. 23/24, 2008 - General Motors and Chrysler, which at the time were discussing a merger, pledge to cut jobs and close plants as the downturn in auto sales deepens.

Dec. 19 - The U.S. announces a $17.4 billion lifeline to Detroit carmakers from the $700 billion Troubled Asset Relief (TARP) programme. GM is to receive $13.4 billion and Chrysler $4 billion. Ford says it does not need a loan.

Jan. 13, 2009 - Germany unveils a 1.5 billion euro aid package, including 2,500 euro incentives for new car purchases.

Jan. 20 - Fiat and Chrysler strike a deal giving the Italian manufacturer a 35 percent stake in exchange for access to technology and overseas markets.

Feb. 6 - Toyota Motor Co, the world's largest carmaker, forecasts a loss of 450 billion yen ($5 billion) for the year to end-March, the first group operating loss in its 70-year history.

-- Italy unveils $1.7 billion package of measures to help its car sector, including a scrappage incentive similar to Germany's.

Feb. 9 - France pledges over 7 billion euros of support for its car industry, but President Nicolas Sarkozy causes controversy by insisting that carmakers protect French jobs.

Feb. 13 - Spain approves a 4 billion euro package that includes 1.2 billion euros in credit for car purchases during 2009 and 2010 and aid to help parts makers upgrade plants.

Feb. 17 - GM and Chrysler request nearly $22 billion in additional U.S. government loans.

March 19 - The U.S. Treasury pledges $5 billion to aid auto suppliers crucial to the survival of the industry.

March 23 - Tata Motors launches the Nano, slated to be the world's cheapest car, selling for less than $2,000.

March 29 - GM Chief Executive Rick Wagoner resigns.

-- The board of Peugeot Citroen fires Chief Executive Christian Streiff.

March 30 - Canada offers C$4 billion ($3.2 billion) in bridge loans to the Canadian branches of GM and Chrysler.

-- Russia pledges over $1 billion to its auto industry.

April 7 - The European Investment Bank approves 866 million euros of loans to automakers.

April 22 - The world's number two carmaker, Volkswagen, posts 76 percent drop in first-quarter operating profit.

-- World number two truckmaker Volvo says it will cut more than 1,500 jobs.

April 24 - GM draws another $2 billion in government aid.

April 27 - GM offers its final plan to reorganise outside bankruptcy by slashing bond debt, cutting a further 21,000-plus U.S. jobs and emerging as a nationalised automaker under majority control of the U.S. government.

April 30 - Chrysler files for bankruptcy protection, saying it will sell its Chrysler, Jeep and Dodge brands into a new company to be owned by the government, Italian carmaker Fiat SpA and Chrysler workers.

May 12 - Nissan Motor Co (7201.T), Japan's No.3 automaker, posts a $2.4 billion loss for the fourth quarter.

May 14 - Chrysler says it will terminate 789 of its 3,181 dealerships as of June 9.

May 15 - GM drops up to 1,200 U.S. dealers.

May 22 - GM borrows another $4 billion from the U.S. Treasury, taking the total government funding to keep it afloat since the start of the year to $19.4 billion.

May 30 - Germany seals a deal with Canadian auto parts group Magna (MGa.TO), GM and the U.S. government to save carmaker Opel from the imminent bankruptcy of its U.S. parent GM.

-- Magna will take over parts of the new European Opel activities from GM. Germany will provide 4.5 billion euros in loan guarantees and Magna will lend Opel 300 million euros to cover short-term liquidity needs.

May 31 - Investors holding about 54 percent of GM's $27.2 billion of bonds indicate support for a U.S. Treasury-brokered swap that may help speed the way through bankruptcy.

June 1 - A bankruptcy judge approves the sale of substantially all of Chrysler's assets to a group led by Fiat.

-- GM to file for bankruptcy later in the day. The U.S. will provide $30 billion of additional taxpayer funds to restructure the company so it can better compete with lower-cost Asian automakers. (Writing by David Cutler, London Editorial Reference Unit; Additional writing by Carl Bagh and Jijo Jacob, editing by Will Waterman)
 


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