[c] Paul Sancya 2006
New York, NY - General Motors filed for Chapter 11 bankruptcy protection Monday morning, just as rival Chrysler positions itself to come out of bankruptcy.
The century-old automaker became the largest industrial bankruptcy in U.S. history. Its announcement marks the first time the federal government, which will end up with a 60 percent ownership stake, will be in a position to restructure the automotive industry.
President Obama spoke at a White House press conference Tuesday morning on better managing the nation's automotive sector.
"The collapse of these companies (GM and Chrysler) would have been devastating for countless Americans and brought enormous damage to our economy beyond the auto industry," Mr Obama said.
GM will receive an additonal $30 billion from the government to help restructure its newly scaled-down company as part of Obama's economic recovery plan.
GM had already received $20 billion in government loans before it filed for bankruptcy.