According to an article in the Dallas Morning News, General Motors filed for Chapter 11 bankruptcy today in an effort to shrink the automaker to a sustainable size. As a part of the GM bankruptcy, the automaker will, close plants, dealerships and implement over 21,000 job losses, losing about 34 percent of its workforce. In an effort to avoid a post-bankruptcy filing sales slump or panic, GM has reminded the public that it is still business as usual.
The article said:
The Detroit automaker said warranty coverage, service and customer support will continue uninterrupted, plants will continue to make cars and trucks, and employees and essential suppliers will continue to be paid. GMAC Financial Services said in a statement that it will continue to provide automotive financing to GM and Chrysler dealers and customers.
The GM bankruptcy comes on the heels of an automaker sales slump that has caused the industry to contract as much at 30 percent. Many jobless Americans are simply not in the market for buying cars. For those Americans who have jobs, many don't have access to the credit necessary to purchase a new car, a fact that has added to the auto industry slump. We can expect to see the economic fallout from the GM bankruptcy in many industries connected to the automaker. But if GM's vision for its post-bankruptcy life is realistic, we will see a leaner, more competitive General Motors emerge from bankruptcy within 90 days. If the GM bankruptcy goes has hoped for, GM will have a smaller workforce, fewer plants and a slimmed network of dealerships.