Car Biz Weekly

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.