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After 25 years General Motors has ended its joint with Toyota at its plant in Fremont, California. The project, known as the New United Motor Manufacturing Inc., or Nummi, has manufactured more than 6 million vehicles, including the Corolla sedan and Tacoma pickup truck for Toyota, and the Pontiac Vibe for GM. GM will no longer be producing Pontiacs next year and intends to discontinue the Vibe in August. GM also announced that it did not intend to continue utilizing the Fremont facility after it emerges from bankruptcy, which is expected to occur in late summer, 2009. The venture allowed Toyota to apply its system in the United States and enabled GM to learn from the Toyota manufacturing process. The plant, which has over 4,700 employees, and has more than 5,000,000 square feet of assembly space is the last auto plant operating in California. Toyota has not yet decided whether it will continue to operate in the Fremont facility, and has rejected reports that it was considering building the Prius in Fremont. Both the Corolla and the Tacoma are being assembled and other facilities, the Corolla in Canada and the Tacoma in Mexico.

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Chrysler concluded its deal with Fiat on Wednesday, June 10, 2009, which in effect ended its 42 day reorganization through bankruptcy. As part of the deal the federal government gave Chrysler $6.6 billion in exit financing. Under the terms of the agreement Chrysler sold the bulk of its assets to Fiat. This was an important milepost for the Obama administration which has been seeking to aid the ailing American auto industry after years of losses and declining sales. Chrysler and government officials had repeatedly demanded that the court approve the restructuring quickly inasmuch as Chrysler was losing approximately $100 million a day while its plants were shut and other overhead costs had to be paid. It is anticipated by Chrysler, Fiat, and the federal government that a new car maker will emerge unburdened by the present debt levels and labor costs. Fiat will run the new company that will now also sell smaller fuel-efficient cars worldwide.

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It is expected that many GM cars will be sold at heavily discounted prices particularly by dealerships scheduled to close during this period.

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It is believed that with the smoothing of the way by the government the major aspects of the bankruptcy case should be resolved within 60 to 90 days.

If you think your GM vehicle, in California, may be a lemon, call our offices for a free consultation. Our toll-free number is 888-Ex-Lemon (888-395-3666).

Because of the bankruptcy laws. GM may cancel its franchise agreements with dealers and has thus far announced plans to close more than 1,100 dealerships and may announce further cuts.

Think your GM vehicle may be a lemon. In California call the Law Offices of Delsack and Associates. We specialize in the California Lemon Laws and are happy to answer your questions. 888-Ex-Lemon (888-395-3666).

No. It is reorganizing under Chapter 11 of the United States Bankruptcy Code which allows companies to reorganize by selling off assets, canceling contracts, closing operations, and restructuring its debt. Once a company achieves these goals it may emerge from bankruptcy as a new corporation with a “fresh start.”

If you think your GM vehicle may be a lemon, please call our offices and we will be happy to answer any questions you may have and do a free case review for you. 888-Ex-Lemon (888-395-3666).

General Motors has entered into an agreement with Penske Automotive Group, the nation’s second-biggest automobile dealer, to sell Saturn to Penske for an undisclosed amount. In February GM had announced its intention to shut Saturn by 2012 if no buyer could be found. It subsequently announced that it would discontinue Saturn by the end of 2009. Under the terms of the agreement Penske will buy GM’s inventory of Saturn cars together with acquiring its parts inventory and the right to sell other vehicles through the network of Saturn dealerships. The deal would save approximately 13,000 jobs at Saturn and its 350 dealerships. Penske, the second-biggest dealership group in sales owns 310 franchises around the world. It is also the sole distributor for Daimler’s Smart small cars.

Think that your Saturn car, in California, may be a lemon. Call the Law Offices of Delsack & Associates at 888-395-3666 (888-Ex-Lemon) for a free consulation and review. www.calemonlaw.com

The government has stated that workers’ pensions and health care benefits would be transferred to the new GM company and remain in force. Retiree health care benefits for nonunion employees could, however, be terminated. Terminated employees older than 65 would subsequently be covered by Medicare.

Driving a GM lemon and concerned how the bankruptcy might impact on your case. Call the Law Offices of Delsack and Associates at 888-395-3666 (888 Ex-Lemon) and find out your rights.

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Category Archives: California Lemon Law

GM Ends Joint Venture with Toyota

Chrysler and Fiat Seal Their Deal

Can I get a good deal by buying a GM car or truck now?

How long will the GM bankruptcy process take?

How many GM dealerships will close because of the bankruptcy?

Is General Motors going out of business?

Saturn to Continue Operations

What about GM workers’ pensions and health care benefits?

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