US Car Giant General Motors Files for Bankruptcy

Car giant General Motors (GM) has filed for bankruptcy protection, marking the biggest failure of an industrial company in US history.

The widely expected move comes after GM had seen its losses widen following a steep fall in sales in recent years, the BBC reported.

The move into bankruptcy protection has been backed by the US government, which is now expected to take a 60% stake in the company.

The White House is also due to announce an extra USD 30 B of aid for GM. President Barack Obama will host a press conference on GM's future later Monday.

GM, which had already received USD 20 B of state aid since the end of last year, said in its bankruptcy filing that its current debts total USD 173 B.

US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors.

It is expected that GM may be able to exist bankruptcy protection within 60 to 90 days.

GM, once the largest company in the world, has been losing market share since the early 1980s.

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