GM’s woes have no direct impact on RP, Asean units

MANILA, Philippines – The dramatically changing global landscape and economic conditions have created the urgent need, and the opportunity, for GM Corp. to reinvent both the car and the company. “All of our key stakeholders — US and global governments, taxpayers, unions, employees, retirees, suppliers, partners and dealers – are playing a vital role in our reinvention,” the company said in a statement.

“Building on the substantial progress we have already made, GM’s United States operations recently made important announcements about the progress of their efforts to become a winning company for the future. The announcements apply only to our US operations, but we want to summarize them and explain what they mean for our business outside of the US,” the company said.

GM Corp. has reached agreements with its main labor union (the United Auto Workers) and the US Treasury that will launch a new leaner, stronger ‘New GM’ positioned for a profitable, self-sustaining and competitive future.

Pending approvals, the New GM is expected to launch in about 60 to 90 days as an independent company with the dual advantages of being built from only GM’s best brands and operations, and being supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before.

The new GM will pursue the viability plan announced by GM Corp. on April 27th, focused on producing winning results by putting the customers first, concentrating on four core brands, Cadillac, Buick, GMC and Chevrolet, and continuing to invest in green, energy-saving technologies.

GM has agreed to sell substantially all of its assets to the New GM, which is a US Treasury-sponsored entity.

“The new GM is expected to launch as an independent company under our current leadership, and the New GM will be the new parent company of our subsidiaries in ASEAN (which includes the Philippines),” the company said.

To implement the sale agreement for the new GM, GM has filed petitions for relief under chapter 11 of the United States Bankruptcy Code. “Because the sale agreement already has the support of the UAW and the US Treasury, we expect that the sale will be approved expeditiously,” it said.

In the US, GM has taken a number of steps to protect current and new GM customers, ensure that its operations will continue without interruption, and provide for a smooth transition to the new GM.

“It is important to know that only GM’s US operations are part of the Chapter 11 process, and that GM’s US court filing should have no direct impact on Asia Pacifc and ASEAN regions which includes the Philippines. Our operations will continue to meet consumer demand,” the company said.