It is reported that General Motors, which owns Vauxhall, is on the brink of going bust and is in ‘earnest’ preparations to file for bankruptcy. The move puts thousands of jobs at risk at Vauxhall.
GM bosses want to split the company in two – a ‘new’ company made up of the most successful units, and an ‘old’ one of its less profitable ones.
The plan is said to be ‘gaining momentum’ and is seen as the most sensible configuration, according to sources.
Analysts say that filing for Chapter 11 bankruptcy in the United States will give GM a degree of protection and a breathing space from creditors as it restructures. GM chief executive Fritz Henderson has said that the company would prefer to restructure out of court but could go to court if needed.