Auto giant General Motors filed for bankruptcy Monday morning.
The federal government is taking control of most of the company.
It's one of the largest bankruptcies in U.S. history.
G.M.'s bankruptcy means more plants will close, more jobs will be lost.
But eventually the government hopes the company can emerge smaller, but intact.
After 100 years in business, General Motors is turning over control today.
The company filed for chapter 11 bankruptcy protection this morning.
The federal government will now own 60 percent of G.M.
Canada autoworkers and other bondholders will share the rest.
“In short, our goal is to get G.M. back on its feet, take hands off approach and get out quickly,” said President Obama.
G.M.'s debt is more than twice what it owns.
It'll get 30 billion in federal assistance plus almost 10 billion more from Canada.
That's on top of 20 billion in low-interest government loans G.M. already has.
G.M's CEO said bankruptcy wasn't the favorite option, but it's the fastest.
"What was and is the most important thing to do is get to our destination - restructure General Motors permanently, and get there fast," said Fritz Henderson.
The bankruptcy means nine more plants will close and three will sit idle leaving thousands of workers jobless.
"I know it's going to be long uphill battle. but it's bittersweet right now because we have hit rock bottom," said G.M. employee Tim Birchmeier.
The autoworkers union is optimistic.
"I think it's gonna rebound quicker than what most people would expect unless the whole country collapses, I think you'll see that," said United Auto Workers Union President Ron Gettelfinger.
Like Chrysler which went bankrupt in April, the government hopes G.M. will emerge in a few months smaller but more able to stand on its own.
House republican leader John Boehner said the bankruptcy filing may buy some time, but Washington needs a permanent exit strategy other than buying failing businesses with taxpayer money.
