General Motors, one of the largest U.S. automobile manufacturers, has been in business since September 16, 1908. The company filed for bankruptcy on June 1, reportedly the largest bankruptcy filing on record for a U.S. manufacturer. Affected consumers naturally have lots of questions and concerns regarding how this reinvention may affect their pensions, benefits, employment or auto warranties.

How might this affect my job? The prediction is that by the end of 2010, GM will eliminate up to 20,000 jobs through the closure of twelve plants and approximately 2,400 dealerships. But for the moment, employees have been instructed to continue reporting to work as usual as the company has requested approval through the Bankruptcy Court for continuation of pay and employee benefits without interruption.

What about my automobile warranty? Warranties will continue to be valid, as GM received approval from the Bankruptcy Court to approve the issuing of warranty payments.

Will my health insurance benefits be affected? According to GM employee health benefits should not be affected, but there is no guarantee that court proceedings could not change this.

What if I own GM stock? Unfortunately, stockholders have already lost over 95% of their value over the past year, as stock prices have fallen to a mere $0.75 a share. It is likely that during bankruptcy trading may be ceased, and investment recovery will be contingent on the success of company restructuring and the return of the government funding.

What about my OnStar Service? OnStar service will continue as it is not included in the bankruptcy filing.

What about replacement parts for my GM car? The parts will continue be available, but there will likely be fewer dealerships to find the parts.

What about my company pension? Federal law prohibits funds in pension plans to be used to pay creditors.

It is certainly possible that General Motors will successfully navigate the bankruptcy process and be reborn as a more competitive, profitable company. In the meantime, as consumers we should continue to support GM vehicles and the corporation as a whole and consider their products based on performance and price, just like any other investment one might consider.

Related posts:

1. Bankruptcy Filings Surge Amid Rising Unemployment It is more bad news for the United States economy,...
2. A Bankruptcy Checklist In today’s economic climate, more and more people are turning...
3. Seven Things You May Not Know About Bankruptcy Though I rarely recommend bankruptcy (usually because the person does...
4. Who Filed Bankruptcy in 2008? The year 2008 wasn’t exactly a banner year for the...
5. NY Attorney General Throws Out 100,000 Judgments for Consumer Debt New York State Attorney General Andrew M. Cuomo filed the...