The American auto giant General Motors finally filed bankruptcy on Monday after struggling with loads of problems. General Motors' move had been expected as it dealt with huge labour costs, falling sales, gas-guzzling models and bad debts.
The iconic automotive behemoth that represented American lifestyle and was a symbol of American might, entered into the clutches of government control on Monday. A smaller General Motors is expected to emerge from this within 60-90 days of the takeover by the government.
General Motors has also launched a new website, GMreinvention.com, which serves as an information source to learn more about GM's Chapter 11 filing and how the company is reinventing itself for the future. The website also features high quality videos about what the new GM will be doing to restructure itself. It also carries information for employees, customers, retirees, dealers, suppliers, investors stating that GM is still open for business. The statements from Mark LeNava, Vice President for GM state that all warranty, service, customer support programs continue without interruption and all product and advanced-technology launches are on track. He also speaks about commitment to the customers.
It is generally presumed that GM’s bankruptcy will affect the auto-component manufacturers in India as well. However, GM India assures its dealers “it is there for you” and Indian operations remain unaffected due to bankruptcy of the parent company.