GM: Firm’s statement
June 2nd, 2009 by Richard Aucock
GM has issued a series of statements, clarifying its exact position in both the US and Europe.
European operations, it confirmed, are NOT included in the bankruptcy proceedings.
This follows last week’s ‘Memorandum Of Understanding’ with Magna International. The German government is also to loan £1.3 billion in bridging loans.
Opel and Vauxhall assets now reside in a pool under parent Adam Opel GmbH. While the negotiations with Magna continue, most of these are currently in an independent trust. GM US holds the rest.
The transition period to finalise a new owner, reckons GM, will take several weeks.
Car dealers and customer warranties are unaffected by the filing.
Over in the US, the company says its ‘strongest operations and brands’ will form ‘the New GM’. These will comprise:
• Chevrolet
• Cadillac
• Buick
• GMC
This will have less debt and lower operating costs. It will also be a ‘global leader in the areas of fuel efficiency and advanced green technology; quality and reliability; appealing designs; customer service; and, above all, value’.
Heady aims indeed… particularly as this will all be based on annual US sales of 10 million, rather than the 15 million-plus the US market has grown used to.
The company will also focus on a reduced US car dealer network of around 3600 retailers.
Green cars are key to the plans. The Chevrolet Volt EREV will hit the market next year; by 2012, New GM will be selling 14 hybrid models. 65 percent of its vehicles will be alternative fuel capable by 2014.
Non-US operations are not included in the court proceedings. In short, this means the moves will NOT affect the following:
• GM Europe employees
• Suppliers to the European operations
• Customers with new cars on order, or with warranties on GM vehicles
• Retirees and pensioners in GM Europe schemes
• Dealers in Europe
For more information, check out the company’s fascinating GM Europe Facts and Fiction website. There is also a special section on the Chapter 11 cases, and full access to the court filings and claims.
Tags: bankruptcy, chapter 11, GM, us
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