General Motors goes bankrupt, GM ME unaffected
American automaker General Motors has filed for bankruptcy. As analysts have known for months finally got confirmed, the largest car manufacturer in the world filed for “Chapter 11 bankruptcy protection” on June 1, 2009 in a New York court, declaring US$ 82 billion in assets and US$ 172 billion in debts. However, General Motors Middle East claims that they are unaffected.
For the first time ever in its century-old history, GM will come under partial U.S. government ownership and gain assistance from taxpayers’ money, much to the dismay of the American public. The Obama administration has already loaned US$ 19 billion to GM, and will pump in a further US$ 30 billion now. The company’s assets split into “Good GM” and “Bad GM,” as it has become known. The bad assets will be liquidated to repay debts.
The U.S government gets a 60% share of the company and will supposedly act sort of like a silent partner, but will still be involved in large decisions, such as selecting the company’s board of directors and major corporate transactions.
General Motors’ operations in the Middle East quickly announced that they are not part of the parent company’s bankruptcy proceedings in the United States.
In a bit of paperwork politics, General Motors Middle East operates under General Motors Overseas Distribution Corporation (GMODC), which claims to be a self-funded and profitable enterprise.
GM spokesmen in Dubai say that all current and future vehicle warranties will be honoured. GM Middle East will also forge ahead with plans to offer the Chevrolet Camaro in July, followed by the Chevrolet Malibu and Cruze in October alongside the new Cadillac SRX, and the new GMC Terrain in December.