General Motors files for bankruptcy

GM filed for bankruptcy yesterday, entering a new and uncertain era of government ownership.

The filing is the third-largest in US history and the largest-ever US manufacturing bankruptcy, according to Reuters, which noted that the decision to push GM into a fast-track bankruptcy, and provide US$30bn of additional taxpayer funds to restructure the automaker is a huge gamble for the Obama presidency.

The GM plan as detailed by US officials is for a quick process that would allow a much smaller GM to emerge from court protection within 60 to 90 days.