Questions & Answers

(Please click on the question to reveal the answer)

  • GM Middle East Statement and Facts

    General Motors Overseas Distribution Corporation (GMODC) office in the Middle East is not part of the chapter 11 filing in the U.S. GMODC is a self-funded, vibrant and profitable company and we will continue to conduct business normally through our dealer network, as we have done over the years. We are committed to the region and will continue to provide our customers and dealer partners with award-winning cars and SUVs along with the region’s best customer care and parts availability.

    • In the United States of America, GM is using a proven court-supervised process to quickly launch a new highly competitive company built upon only the strongest parts of our business
      • ‘363’ is a proven process that will allow the launch of the “New GM” as a leaner company with a significantly stronger balance sheet, a world-class line-up, a global footprint and industry leading expertise and technology
      • Pending court approval, GMODC will be part of the New GM
    • Chapter 11 is unlike the laws of other countries
      • This is not a liquidation of the company
      • o This is a process supervised by a court to ensure a fair outcome for all stakeholders
    • GM’s operations in the Middle East and its dealer network are not impacted by this announcement. This filing has no impact on customers’ vehicles, their vehicle warranty, parts availability or dealership operations
    • GM is here to stay with its three core brands – Chevrolet, GMC, Cadillac
      • Hummer is up for sale and we will let customers know when a decision is made
    • GM has and will continue to honor all warranties given at the time of purchase
    • GM dealers are open for business to sell and service GM cars as usual
    • GM dealers will continue to receive parts as usual
    • GM dealers are well covered with parts availability through our Middle East parts distribution center in Jebel Ali Free Zone, Dubai
    • GM’s vehicle launch plans are on track.
      • Chevrolet Camaro, Malibu and Cruze
      • New Cadillac SRX
      • New GMC Terrain
    • There is no risk in buying any GM vehicle. We will continue to deliver world-class cars and SUVs , and our dealers will continue to offer the region’s best customer care, parts availability and warranty coverage
    • GM will continue to honor all warranties given at the time of purchase of a GM car. We will do so on Hummer until a final decision is made on the sale of the brand. Once a sale is made, we will work with GM Company on this and other issues and let customers know
    • To respond to the current market conditions, GM dealers have put in place a number of strong offers and sales promotions to enable more customers to buy a GM car.
    • GM dealers will not cut prices. This is damaging long term to our business, is damaging to the resale value of our cars and not fair to our existing customers. Maintaining price stability is important for the company's reputation and shows the respect we have for the customer as a matter of principle and strategy
    • GM has been operating in the Middle East for more than 80 years and looks forward to many more years to come

  • Is my warranty still valid?

    GM will continue to honor warranties given at the time of purchase.

  • Is my dealer open for business?

    Yes, as usual.

  • Will the dealer be able to service my car? Will he receive parts?

    Yes. Our dealers are open for business as usual. They continue to receive parts.

  • Will Roadside Assistance still be available?

    Yes, as usual.

  • What will happen to the cars you announced earlier? Will they still come to the region?

    Our launch plans are on track and unchanged. We have already launched the CTS-V, Escalade Platinum, Sierra Denali and Chevrolet Traverse. The Chevrolet Camaro arrives to the showrooms in July. The Chevrolet Cruze and Malibu and the all-new Cadillac SRX arrive in October and the all-new GMC Terrain arrives in December.

  • What is chapter 11?

    Chapter 11 is a court-supervised process that provides a company with tools and time to preserve and restore its value. Chapter 11 allows a company to continue normal business operations while it does this. While many people think of “liquidation” when they hear the word “bankruptcy,” companies go out of business under chapter 7, not chapter 11. Remember, chapter 11 allows a company to continue operating while using the tools of the court-supervised process to pursue creative business strategies to reinvent themselves.

  • What are some key attributes of chapter 11 that are different than the insolvency laws in many countries?

    Chapter 11 has some unique attributes that are not available under the insolvency laws of most countries. For example:
    • Chapter 11 is not a declaration of insolvency
    • Companies don’t file chapter 11 to liquidate; they do so in order to continue operating as a financially stronger business, either by selling the company or reorganizing their operations or balance sheet.
    • Management remains in control of the business during the chapter 11 process. Trustees, administrators and monitors are not appointed, and creditors have much less control in chapter 11 than they do under laws in other countries
    • Chapter 11 does not cause interruption to business operations – the court enters orders directing that business can be conducted as usual
    • The company is given breathing room during the process – a “automatic stay” prevents parties from suing the company or taking the company’s assets
    • Specific benefits include that the company can sell its assets free of liabilities, obtain “debtor in possession financing” to fund ongoing operations during the rebuilding process, and “reject” unprofitable contracts and leases.

  • What is 363?

    Section 363 is an example of a chapter 11 tool that allows a company to reinvent itself.
    • It enables a company to sell valuable assets, which quickly exit chapter 11 under new ownership.
    • The proceeds of the sale are used to reduce the Company’s outstanding liabilities

  • What is the New GM?

    The New GM will be built from only the strongest parts of our business – our employees; our Chevrolet, Cadillac, Buick and GMC brands and the plants and other hard assets that those brands rely on; the contracts we need to secure supplies and keep our business moving; and the stock we own in our domestic and global subsidiaries, including our GM Latin America, Africa and Middle East region.

  • How long will it take to create the New GM?

    It is a relatively quick process. GM expects to receive court approval to sell the assets to New GM within about 30 days, and to complete all of the business transition activities needed to launch New GM’s operations within about 30 days after court approval.

  • What will happen from now until New GM is created?

    We expect that the transition will be completed in 60 to 90 days. In the meantime, GM has the support of the U. S. Treasury to transition operations to the New GM. This support includes the U.S. Treasury’s agreement to fund this effort.

  • How does the chapter 11 filing in the U.S. impact the Middle East?

    GM subsidiaries outside of the U.S. are not part of the chapter 11 filing. As part of GM’s global structure, GMODC is an integral part of GM and we will make every effort to improve efficiencies and remain a profitable business unit.

  • Is GM going out of business?

    Absolutely not. The Middle East office is a self-funded legal entity. There are no plans to move toward a similar filing here.

  • What will happen to Opel (in S. Africa, Egypt, N. Africa)?

    We do not foresee any change to our relationship with Opel as one of a number of suppliers or products to our region. The market acceptance of these products will continue to be judged on the price/value relationship they have with comparable products in each market.

  • How do the Hummer/Saab actions outlined in the viability plan impact the Middle East? Impact to Dealers?

    Hummer: GM is working through the final details of a preliminary agreement with potential investors in the HUMMER brand and anticipates an announcement in the very near future. We cannot provide any further details at this time. (5/31/09, 11 a.m. update)

    Saab: The company has conducted a strategic review of its global Saab business and has offered it for sale. Given the urgency of stemming sizable outflows associated with Saab operations, GM is requesting Swedish government support prior to any sale. The company has developed a specific proposal that would have the effect of capping GM’s financial support, with Saab’s operations effectively becoming an independent business entity effective January 1, 2010. While GM is hopeful that an agreement can be reached with the Swedish government, the Saab AB subsidiary may be required to file for reorganization in the near term.

  • Will we be able to get finance to buy a GM car?

    In response to the general market conditions and the tightening of credit, our dealers have been working with finance institutions in an effort to make some of the best finance offers to you, our customers.

  • Will GM Middle East continue to support those dealers who will sell HUMMER and Saab in the region in 2009?

    Yes and until a final decision is made on the sale of the brands.

  • How do you get parts if you are on stop with GM or GM with their suppliers?

    GM in the Middle East has invested more than $ 73 million in a regional parts distribution center in Jebel Ali Free Zone in Dubai. The idea is to free up the dealers from having to stock parts. They order what they need on short basis, especially as they can get the part(s) they need within 24 hours of ordering them. We have built our inventory to healthy levels.

  • Are you going to cut vehicle prices to generate sales (good news for new buyers, bad for existing customers)?

    We have put in place a number of strong offers and sales promotions to enable more customers to buy a GM car. Pricing is a strategic exercise and does not follow market fluctuations. Cutting price is damaging long term to our business, is damaging to the resale value of our cars and not fair to our existing customers. To sustain our business, GM and dealers have to be profitable. Our prices are set after thorough and careful studies and research to ensure they are competitive and market based and dealers are profitable.

  • GM is getting rid of dealers in the US so are you going to do the same in the GCC?

    GM has reasons related to efficiency, capacity and cost to reduce the dealer network in the US. The situation in the Middle East is different.

  • Does GM Middle East plan to continue with the investments previously announced in the region?

    Yes, Saudization, MEDC

  • How does the filing in the US impact GM dealers in my country?

    GM dealers in the Middle East are not impacted by the filing in the US.

  • Is there any risk in buying a GM car or SUV following this announcement?

    No. GM subsidiaries outside of the U.S. are not part of the filing, so there will be no impact on our operations. We will continue to deliver world-class vehicles, with world-class quality, value, safety and innovation.

  • What does this mean for future car buyers?

    This is good news for customers who want to buy cars from an automaker with an award-winning lineup of cars and trucks with rock-solid warranties and other customer-support programs; that is a leader in green technology, and has a promising future. The New GM will have two distinct advantages: it will be built from GM’s best brands and operations, and it will be supported by a stronger balance sheet with a significantly lower debt burden and operating cost structure than before. This will help ensure that the New GM will continue to invest in its future. All customers should have confidence in New GM’s ability to serve the needs of its customers in every way, including the commitment and ability to honor customer warranties right now and for many years to come.