Despite GM’s Chapter 11 bankruptcy filing on June 1, retail sales for June
are currently higher than in May according to General Motor’s CEO Fritz
Early indicators suggest that the demand for General Motors cars and trucks
has stabilized despite fears that the bankruptcy announcement would result in
even lower sales and prolong the bankruptcy process.
Speaking at a summit in Detroit
on June 17, Henderson stated that “June sales are moving along just fine,” and
added, “we’re very gratified for the support of dealers and customers that
we’ve received through this.” He did acknowledge that fleet sales, including
sales to car rental companies, had declined since May despite the rosy retail
Supporting Henderson’s assertions, the country’s largest automotive
retailer, AutoNation Incorporated, has reported that traffic at GM dealerships
has remained steady since the Chapter 11 filing which is part of a government
imposed restructuring plan.
The federal government’s cash infusion and promises to honor warranties on
all GM brands has apparently reassured consumers and averted the auto maker’s
fears that car and truck buyers would abandon them in the wake of the
Adding to consumer confidence is the plan announced by GM and the federal
government for the auto maker to emerge from Chapter 11 protection in as little
as 60 to 90 days.
Henderson told reporters on Wednesday that legal proceedings are
“progressing according to plan,” and predicted that the restructuring could be
completed by the end of August.
The next eagerly anticipated benchmark for GM will come at the end of June
when the lion’s share of retail sales is traditionally made. The full impact of
the financial restructuring may not be felt until after GM’s emergence from
Chrysler Motors, which emerged from bankruptcy a mere six weeks after
filing, saw their sales slump by 47% in May which was a sharper decline than
the industry average.