General Motors’ (GM) Africa Operations president and managing director will host a media conference on Monday evening following General Motors Corporation’s filing for bankruptcy in the United States earlier in the day.
The conference, which will be held at its Kempston Road, Port Elizabeth, facility is aimed at updating the media on South Africa’s standing regarding current developments.
GM’s filing for bankruptcy is seen as the biggest failure of any industrial company in US history.
The firm had until June 1 to present a viable revival plan in return for emergency government funding, but GM’s sales have been hard hit by the financial crisis and the company has already received $20-billion in state aid.
In return for more cash, the federal government will receive a 60% stake in the company and will reshape the car industry within 90 days.
Senior executives at GM have been making final preparations for completely restructuring what was once the world’s largest car company, under judicial supervision.
This ranks as the third largest bankruptcy in US history following Lehman Brothers’ collapse and the failure of telecoms giant WorldCom.
It is believed the restructuring will drastically change GM, with thousands of workers likely to lose their jobs.