Singapore: GM ODC plans for future as part of New GM

None of GM’s operations in Singapore are included in the court filings and these filing have no direct impact on GM’s non-US operating plans and non-US operations. Under the agreement of the filing, several of GM’s strongest operations and brands will be sold to a ‘New GM’.

"GM ODC will be an important part of the new company and will maintain normal business operations. It is a separate entity from GM Corp and has the capability and resource to continue our operations," said Kittichai Jarusrojpoka, Managing Director, General Motors Overseas Distribution Corporation.

Mr. Kittichai continued: "GM customers in Singapore can be assured that they can continue to rely on their Chevrolet and Opel cars, service and warranty, as they always have, while employees and suppliers to GM ODC will be paid as usual."

Mr. Kittichai also reaffirmed GM ODC’s focus on continued growth in Singapore, and cited GM ODC’s growth as an example of the potential for growth in this region.

"For example, Chevrolet in Singapore increased sales by 10.15% in Q1 2009 compared to Q1 2008, bringing the Chevrolet car population in Singapore close to 9,000 despite the economic downturn," he said. "We will continue to offer great products that represent the best in automotive technology, such as our first global compact car, the Chevrolet Cruze as well as our new mini-car, the Chevrolet Spark."

It is important for Singapore audiences to understand that under U.S. law, a Chapter 11 bankruptcy filing does not mean a company is liquidating, becoming insolvent or closing down its business; a company continues to operate, and management continues to lead the business.

Even though this legal process does not exist in most other countries, it is a well-established process in the U.S., and many U.S. companies have successfully utilized the Chapter 11 process.

Mr. Kittichai concluded, "We will put the customer first in all that we do, and we will be covering all bases to ensure that customers can continue to have total confidence in GM. We have always taken care of our customers and stood behind our products and we will continue to do so. "Customers can rest assured that warranties and all other customer obligations will be honored without interruption."

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Credits: JRC