Information for Consumers and Investors
Is GM going out of business?
GM has entered chapter 11 bankruptcy protection to launch the “New GM.†GM has the support of the U.S. and Canadian governments and the UAW in this effort.
What does this mean for GM’s current customers and future car buyers?
There will be no interruptions in GM honoring customer programs, warranties and provide replacement parts. GM has asked the court for specific orders authorizing GM to honor customer warranties and programs as it always has.
GM dealers will have the same access to replacement parts as they always have; customers of discontinued brands or dealerships that have closed as part of GM’s viability initiative will continue to be supported by other GM dealerships; customer promotions and incentives will continue without interruption; and there will be no impact on OnStar service
How is the New GM being launched?
GM’s anticipates selling its assets to a new entity to quickly launch a leaner, more customer-focused and more cost-competitive automaker, with a much stronger balance sheet that is positioned for profitability. The New GM will be built from GM’s strongest brands and operations.
How long will it take to launch the New GM?
GM expects to receive court approval to sell the assets to New GM within about 30 days after filing, and to complete all of the business transition activities needed to launch New GM’s operations within about 30 to 60 days after court approval.
What will happen from now until New GM is launched?
We expect that the transition will be completed in 60 to 90 days from June 1.
Will New GM honor customer warranty claims?
New GM will assume the obligations to support the express warranties issued by GM to its customers.
Will customers still be able to get service parts to repair their vehicles?
Replacement parts are, and will continue to be, available to service and maintain GM vehicles.
Is it safe to buy a GM car now?
GM is offering sales incentives, including zero-percent financing and/or cash rebates, on many of its models in an effort to boost sales. It is possible to get a very good deal during the restructuring.
What brands and models will still be available?
GM plans to cut the number of brands from eight to four. It will keep Buick, Cadillac, Chevrolet, and GMC, and eliminate or sell Hummer, Pontiac, Saab, and Saturn. GM plans to phase out Pontiac by the end of 2010.
Will GM close dealerships?
GM has announced plans to reduce its U.S. dealer network to 3,600 from roughly 6,000 by the end of 2010. It has already contacted about 1,100 dealers that it plans to end their franchises by October next year.
Will the chapter 11 be completely over after New GM exits?
When the New GM launches, the chapter 11 case will be over for all of the operations that GM customers interact with. For GM’s operations that will not become part of the New GM, the chapter 11 case will continue in order to resolve creditors’ claims and wind down those operations in an orderly way.
Will GM’s employees be part of the New GM?
Yes. GM employees will become New GM employees at the time of New GM’s launch, which is expected to be as early as July 31. Through the creation of New GM allows for the continued employment of the majority of U.S. employees, there is still need to reduce the size of the workforce for New GM to be successful. GM announced that it will substantially reduce salaried employment by 4,000 in the U.S.
Customers with question can call: 1-866-405-4005
Will GM’s common stock be delisted from the New York Stock Exchange?
GM received notice from the NYSE on June 1 that it intended to suspend trading of GM common shares effective June 2 and would move to begin the delisting process. It is the sole discretion of the NYSE as to when and whether the stock will continue trading on the NYSE.
How will GM’s common stock be traded if it is delisted from the NYSE?
If GM’s common stock is delisted by the NYSE, market makers not affiliated with GM may initiate limited trading on the Over-the-Counter Bulletin Board (OTCBB) and/or the Pink Sheets even while GM is involved in a Chapter 11 proceeding.
How will GM communicate with investors going forward?
GM expects to continue to make required filings with the SEC, including quarterly and annual reports for as long as they are required. Also, the company expects to begin submitting monthly operating reports to the court, which will be available through the court docket at www.gmcourtdocs.com].
Is there someone at GM that I can speak with regarding the future of my investment and whether I should hold or sell?
Stockholders should consult with their own professional investment advisor to assess their personal investment situation.
How will GM communicate with investors going forward?
The company will make required filings with the SEC, including quarterly and annual reports for as long as it is required.
What impact does the filing have on bondholders? How are unsecured bondholders represented in the court proceedings?
All parties, including bondholders, will be treated in accordance with the provisions of the U.S. Bankruptcy Code and the rulings of the Bankruptcy court. The office of the United States Trustee is responsible for appointing the statutory Unsecured Creditors Committee, which is charged with representing all unsecured creditors in the proceedings (including unsecured bondholders).
Where can I go to get more information on GM’s filing?
www.gm.com/restructuring and www.gmreinvention.com. Additional information, including court documents, can be found on the bankruptcy court docket at www.gmcourtdocs.com.
Stockholder or individual investor related inquiries contact 1-800-561-4182 or 1-732-512-3104
Source:Â General Motors