GM files for chapter 11 bankruptcy

The largest U.S automaker, General Motors filed for chapter 11 bankruptcy early Monday. GM's bankruptcy is the third-largest in U.S. history and the largest-ever U.S. manufacturing bankruptcy.

GM's bankruptcy comes a month after another U.S automaker Chrysler filed for bankruptcy for chapter 11 protection in April. The bankruptcy filing was done at the U.S. Bankruptcy Court in the Southern District of New York. Today is the end of the 60-day period the White house gave the 101-year old automaker to come up with a successful viability plan. The chapter 11 filing will allow GM to restructure its debts and emerge as a leaner company. Obama Administration officials said late Sunday that federal government would provide an additional $30 billion to GM. This will make the government the majority share holder in the company with a stake of 72.5% General Motors which was founded in 1908 by William C. Durant was the largest car maker in the world until last year when it was passed by Toyota Motor Corp. At the end of last year, GM had 244,000 employees around the world, half of them in the United States. GM had cut 30% of it's dealerships last month as part of its cost cutting plan. Earlier on Friday, GM shares had plunged to an all time low of 75 cents.It was less than the $1 minimum price normally needed for a New York Stock Exchange listing.