While No. 3 U.S. auto maker Chrysler has been making headlines with its recent bankruptcy filing and restructuring plan, General Motors has been trying to make headway in a new business plan of its own or it, too, will likely face Chapter 11.
With the company’s June 1 deadline for improvement less than a month away, the company must make impressive strides in the coming weeks. However, GM’s latest version of a restructuring plan may be rejected by the U.S. government if the United Auto Workers union has its way.
On Tuesday, the UAW requested that the government reject the plan on grounds that U.S. jobs would be lost and more trade would be done instead with countries like Mexico and China. The UAW stands to own as much as 39% of a newly restructured GM, leaving the nation’s No. 1 auto maker no choice but to meet the union’s demands.