No impact on General Motors Mideast business

General Motors' operations in the Middle East have announced that they are not part of General Motors' voluntary chapter 11 filing in the United States to implement a '363' sale agreement. General Motors in the Middle East, which operates under General Motors Overseas Distribution Corporation (GMODC), is a self-funded, vibrant and profitable enterprise and will continue to conduct business normally through its dealer network, as it has done for more than 80 years. General Motors Middle East will continue to provide customers and dealers with award-winning cars and SUVs along with the region's best customer care and parts availability. All current and future vehicle warranties will be honoured as normal. In the US, '363' is a proven court-appointed process, which will allow the launching of the "New GM" as a leaner company with a significantly stronger balance sheet. Mike Devereux, President of General Motors in the Middle East, said: "General Motors is wholly committed to the region." GM files for bankruptcy General Motors filed for bankruptcy protection yesterday, seeking a quick restructuring similar to that of Chrysler to allow the former American industrial icon to emerge leaner and wipe out massive debts. The filing in the same New York court that approved a speedy restructuring for Chrysler on Sunday aims to allow the former world number one carmaker to re-emerge as a new, leaner company within 60 to 90 days. The new firm "will be built from only GM's best brands and operations, and it will be supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before," the Detroit-based firm said. "Today marks a defining moment in the reinvention of GM as a leaner, more customer-focused, and more cost-competitive company that, above all, can quickly generate winning bottom line results," said Fritz Henderson, GM Chief Executive since late March. "The economic crisis has caused enormous disruption in the auto industry, but with it has come the opportunity for us to reinvent our business," he said. GM listed asset of $82.3 billion (Dh301bn) and debts of $172.8bn in the case. The US industrial icon enters the process aiming for a so-called pre-packaged bankruptcy with billions in government financing and agreements. (AFP) Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .