After its reign as the largest automaker in the world, General Motors has filed for Chapter 11 bankruptcy. The Treasury and the federal government have claimed that theses new developments will make the new GM a leaner and healthier company. The bankruptcy is the third largest in American history and involved nearly $173 billion in dept.

In approximately 60 to 90 days, this new GM will be launched. The difference from the existing GM is that the new version will only include the strongest brands, dealers, and facilities. Oklahoma GMC points out that that while GM has previously been home to numerous nameplates, it will now only consist of only Chevrolet, Buick, GMC, and Cadillac brands. Fewer brands means fewer sales admits one dealer specializing in Philadelphia car loans, but these brands remain the automaker’s strongest and will certainly help make the automaker as a far leaner company.

Ultimately, the changes at GM are intended to provide the automaker with an improved balance sheet as recent years has seen debt grow dramatically. In order to help achieve its lofty goals, the U.S. Treasury is also committing $30 billion in bridge financing to further aid the process. Missouri Used Cars says the U.S. Treasury will not own GM debt alone, but will also share some of the dept with Canadian and Ontario governments as well.

While bankruptcy is under way, General Motors will continue to sell its cars and honor vehicle warranties. GM dealers realize that sacrifices will need to be made, but remain optimistic as the automaker will become stronger once it exits bankruptcy proceedings. In addition, operations until them will continue to operate as normal in most markets outside of North America.

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Current General Motors news can be read at Car Biz Weekly.

Times have been tough for the Detroit Big Three, but times have also been tough on the Japanese Big Three. In recent months, the largest Asian automakers, Toyota, Honda, and Nissan, have been forced to cut production, cut jobs, and alter product releases due to dismal financial results and poor sales. Clearly, the economic concerns extend well beyond Detroit and truly involves everyone from around the world.

While the slip in Japanese sales and profits has not been quite has steep as those of the domestic automakers, the time has come for Japanese automakers to follow the same path. This week Nissan has announced it will be cutting just over 8 percent of its workforce, thanks to a $2.9 billion loss expected for this fiscal year.

Despite steep losses, Nissan plans to uphold its current aggressive product development schedule. Included is Nissan’s upcoming electric vehicle, which Hartford Nissan says remains a high priority according to Nissan management.

Honda also has forecasted trouble ahead, reducing its earnings forecast by about 57 percent. While a profit is still expected according to Honda Philadelphia, Honda has preemptively cut salaries among board members and senior managers. Toyota, now the world’s largest automaker, has also shed salaries, cut production, and expects a loss of about $5 billion. Further cutbacks are also expected. That being said, Westminster Toyota dealers see new vehicles such as the Venza crossover and the all-new Toyota Prius hybrid to boost sales momentum. Already, Irvine Toyota dealers have seen demand for the Venza due to heavy Superbowl advertising and other current incentives.

While all automakers are hurt by dwindling sales here in the U.S., the automotive markets in Europe and Japan are also seeing declining auto sales. Even popular vehicles, such as the Toyota Prius hybrid, are facing declining sales as potential car buyers steer away from new car showrooms. In fact, a Toyota plant in Mississippi cut production of the Highlander in order to produce additional Prius vehicles. However, production there has been postponed, even as interest in the Prius has remained high.

With the U.S. auto market being particularly challenging these days, this year is looking to be a tough one for automakers and car dealers alike. While forecasts already look grim, many industry analysts are expecting the worst, with even more declines ahead in 2009.

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The latest headlines from Toyota dealers can be found here.

It was only when gas prices spiked that consumers and the media turned against the Big Three for producing truck- and SUV-heavy lineups. It seemed like overnight consumers and critics began demanding compacts and hybrids, rather than snapping up their bulky sport utilities like they had done previously. As a result, Detroit did their best to respond, introducing new plans such as the Chevrolet Volt, or Chrysler electric sports car, Jeep, and minivan. Ford also introduced new hybrid plans.

While the promise of these cars sounds extremely encouraging, there are unforeseen problems with these plug-in hybrids, fuel cells, and electric vehicles. When they finally become available in dealer showrooms, such as Hartford Chrysler dealers which are eagerly anticipated the all-new Chevy Volt, they will come with steep price tags. While the technology and the efficiency will no doubt get consumers excited and even drive them to dealers, the premiums may be too much to make them strong sellers, especially if the current recession looms for several years. What if gas prices remain low? Orlando Chevrolet dealers and others wonder, will consumers still demand and flock to these new cars that are making their way down the pipeline at domestic and Japanese automakers?

Consumers are fickle, and should gas prices remain low, Louisville Chevy admit it could be interesting to see if these new cars will sit on dealer lots in the same way SUVs and trucks are sitting on dealer lots right now. Perhaps we’ll see another public outcry for the automakers to build vehicles that consumer want to buy. While it may seem an unlikely scenario, time will be the judge.

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