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.

Although the Obama administration states that will take no direct interest in the day-to-day operations of the new GM, it is nevertheless known to favor smaller cars and hybrid electric vehicles.

If you think your GM vehicle may qualify under the California Lemon Law, please call to talk with one of our attorneys. Our toll free number is 888-Ex-Lemon (888-395-3666).

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.