Rumors of an impending GM bankruptcy has put the car world in a state of frenzy, circulating fears that purchased cars from GM may no longer provide warranties should such an unfortunate event happen. But thanks to the assurance of the US government, motorists who have or are planning to get a GM car need not worry. General Motors Corp. says the U.S. government is guaranteeing the warranties of its cars and trucks sold in Mexico.

The government announced it would guarantee warranties of vehicles sold in the U.S. starting March 30. The move was designed to stimulate sales by easing fears GM might go into bankruptcy and wouldn’t be able to back its warranties.

GM says it will pay part of the warranty guarantee costs and will borrow the rest from the U.S. government. The guarantees cover GM vehicles sold in the U.S. and Mexico during the company’s restructuring period.

(Source) KESQ

Tags: Bankruptcy, car world, Cars, General Motors, general motors corp, GM, gm car, gm vehicles, Mexico, motorists, restructuring, trucks, us government, warranties, warranty

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Just when you thought the much celebrated car bailout in the U.S. was forgotten and done with, Canada is now the next country being sought by GM and Chrysler for help. The Canadian units of General Motors Corp and Chrysler are seeking as much as C$10 billion ($8 billion) in aid from the Canadian and Ontario governments as they fight to survive an industry-wide crisis.

The requests represent a big increase in the amount of aid that the companies had previously said they needed. Canada had pledged C$4 billion in support at the end of last year.

The companies are reeling from the brutal downturn in the highly integrated North American auto sector and are seeking repayable loans to help them survive.

It proposed a 10 percent cut in executive salaries, and reduced pay and benefits for salaried employees.

Significantly, the plan would also keep 17 to 20 percent of GM’s production in Canada over the next five years, the company said, a feature the Canadian government signaled was essential.

GM Canada refrained from providing a dollar amount on its proposal, but Tony Clement, the Canadian industry minister, said GM is asking for C$6 billion ($4.8 billion) to C$7 billion in repayable loans.

(Source) Reuters

Tags: auto sector, Chrysler, General Motors, general motors corp, GM, gm canada

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