General Motors filed  Chapter 11, Section 363 of the  Bankruptcy Code  and joined Chrysler in the struggle to come out of it within three to four months to  a leaner company.

President Obama announced that General Motors will receive a bailout of $30 billion because of the plan that was requested and received of March 30, 2009  proved that GM is still a viable company.  The business plan took two months to construct and accepted but did little to provide captial to pay almost $173 billion of debt to its creditors.  The $30 billion of government bail out money will be used to  help restructure the company.

For the most of the century, General Motors has been the most recognizable company in America, employing generations of families in the automaking industry.  As one of the oldest and  largest companies in the country, General Motors now after filing Section 363 bankruptcy have to rebuild and restructure to a new company.

The GM share holders agree with President Obama that the sacrifice will have to be made not only by the company but by them as well.  Other than the $30 billion bailout, President Obama said that they should not be expecting any special treatment from the government.  In return for the $30 billion government bail out, the federal government is expecting a return of $8.8 bilion in stocks with a 60% equity in General Motors. 

President Obama stated that the federal government does not want to own equity in General Motors and will dispose of its ownership interest as soon as possible.  The president said that the government's goal is to see GM strong, viable and profitable contributing to the economic growth of the country and creating jobs without government intervention. However, in special cases, President Obama says that the tax payers's interest will be protected.  The government will also have to right to elect the initial directors of the emerging new General Motors.  The selling power of the new General Motors is expected to increase to 70% with the building of a new small cars in one of its idled United AutoWorkers (UAW)  plants.

In the restructuring of GM, considerations will have to be given to prior failures and to learn from them and improvement on the overall cost structure.  The break even point as reported by the Washington Post for annual sales is now set at  $10 million down from $16 million.  General Motors plans to close 11 plants and to idle 3.

General Motors will continue to honor it warranties.   The Treasury Department formed the Warranty Support Program as a back drop and supplied $361 million of funds to be used for warranties.