AND JIM PUZZANGHERA, LOS ANGELES AND WASHINGTON — General Motors Corp. took steps Friday to grease the wheels of what's expected to be among the largest bankruptcies in U.S. history, winning new concessions from its largest union and closing a deal to sell its European unit.
GM has said it would hope to exit a potential bankruptcy as quickly as possible to keep costs down and prevent further damage to its sales, suppliers and reputation.
Securing the new contract from the United Auto Workers union, which will significantly reduce GM's debts while cutting its production costs, is a key step for the company. So is the sale of Opel to Canadian parts supplier Magna International.
"We very much appreciate the support of our employees and retirees," said Diana Tremblay, GM's vice president of labor relations. "Their shared sacrifices will enable GM to become a stronger, more viable company that will continue to deliver world-class cars and trucks."
A Chapter 11 filing by the nation's largest automaker is expected in the next few days.
The Detroit-based company said late Friday that its chief executive, Fritz Henderson, would hold a news conference in New York on Monday, but gave no further details.
Chrysler, which sought Chapter 11 protection a month ago, made its filing in New York Bankruptcy Court.
That case has proceeded quickly, and on Friday the judge in the case, Arthur Gonzalez, heard final arguments over the plan to sell most of the automaker's assets to a new entity that would be controlled by Italian automaker Fiat.
More than 300 groups and individuals have entered objections to the sale, including many of the 789 Chrysler dealers that face having their franchise contracts voided.
A decision on that sale is expected Monday and could pave the way for Chrysler to emerge from bankruptcy in a matter of weeks.
That would be an unusually rapid exit for a company as large and complex as an automaker and as such gives hope that GM's stay in court could be brief, despite its significantly larger, more complex nature.
White House Press Secretary Robert Gibbs said Friday that the administration was encouraged by the speed of Chrysler's case.
"I think Chrysler certainly gives . . . a hopeful example for General Motors," he said, adding that President Obama was encouraged with the progress GM was making in restructuring.
