Gov: Bankruptcy a new beginning for GM

(Lansing, MI) – Lansing, MI (MPRN) - Governor Granholm says the General Motors bankruptcy is a tragic day for Michigan and auto workers. But she says it's also the beginning of a new future for the state's economy.

The governor says Michigan will lose five GM plants and 86 hundred automotive jobs. Two other plants will be placed on standby.

Michigan's jobless rate - already the highest in the nation -- will almost certainly go higher. But the governor says bankruptcy will allow G-M to become a viable company, and that the end of automotive downsizing is in sight.

She says, at the same time, Michigan will compete for auto suppliers that are consolidating their operations, and move into new businesses that are related to the auto industry, but not as dependent on it: "We are not going to throw in the towel. These are tough times, but we are pretty tough ourselves."

The governor says President Obama should not be blamed for forcing G-M to follow Chrysler into bankruptcy. She says liquidating the companies would have been worse.