General Motors goes bankrupt, GM ME unaffected

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.

What do you think?



  1. So no more Hummer, Pontiac and Saturn…

  2. buy american = support terrorism in iraq

  3. I for one will be glad when I stop seeing Hummers, typically driven by wimps with inferiority complex 😀

  4. If GM goes under…it will effect a lot of other companies as well. It will be a global effect that can’t be too good for car owners. I’m glad Hummer is going though and I didn’t care about Saturn either but Pontiac is something I feel sad about especially after knowing it out sold Cadillac 2:1 but just because cadillac is a high profile brand, they put it into the Good GM part.

  5. I think Ford reacted like that way back.

    Because few years back Ford was in a worse sitaution than GM and Chrysler and they started to label the “Bad Assets” and “Good Assets”

    I read that in Forturn Magazine they were talking about Ford’s CEO.

    But it seems in the UAE in particular Ford lacks a good capable dealer which is sad for me.

    I changing to another car company after the Ford dealers disapppionted me.

  6. Official Bankrupt..Governmentally Full of Funds. Don’t worry about Hummer, it will be taken over by some other company and it will come again..Do you guys still believe in political concealed American news? The Japenese are also very clever..till few months back they showed they are in tremendous profit … as soon as they saw US companies showing bankruptcy…fearing action from US government, suddenly they also started showing losses..don’t believe in their so called free servicing offers…once you buy a car, you will have to spend on your own..don’t think you are getting a Pajero 3.0 for 90,000 or Ford Explorer for 99,990…open excel sheet and calculate 6 years interest. Dealers are doing the same trick that bank used to do with free credit card system. Eventually you will end up paying from your pocket more.

  7. GM deserves to close period !

  8. All false claims GM middle east will soon put breaks in there way they are not affected..

  9. nice info royer…

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