The company is demanding that these dealerships close by the end of 2010. Many of the dealers scheduled to close are attempting to block the closure action which will then leave it to the bankruptcy judge to decide. GM, in the interim, will continue to provide inventory to its dealers.

Yes, it is expected that GM will honor its contract with the U.A.W., whose members approved changes last week.

If you have any questions about how the GM Bankruptcy may affect your California Lemon Law case, please call the Law Offices of Delsack & Associates, LLC at 888-Ex-Lemon (888-395-3666).

The government has announced that supplier contracts, which normally could be canceled in bankruptcy, would remain in force and has established a new program to provide help to suppliers. Eventually General Motors will ask the approval of the court to allow it to end contracts with some suppliers who, while they may challenge the cancellations, will most likely have to reach some kind of a settlement with GM.

After many months of uncertainty, General Motors filed for bankruptcy this morning. The company was forced into filing by the President who believes it is necessary to temporarily do this in order to save the troubled automobile maker. GM hopes to end up with 3,600 dealers instead of the 6,000 it has now and they will not be renewing franchise agreements when they expire in 2010.