GMSA safe from US financial woes

Staff reporter and Reuters

Staff reporter and Reuters

As General Motors edged closer to preparations for possible bankruptcy yesterday, GM South Africa assured customers that none of what was going on in the US would affect the local unit.

A source familiar with the US-based holding company's plans said this week that General Motors was in "intense" and "earnest" preparations for a possible bankruptcy filing, sending the company's shares tumbling.

GMSA's product communications manager, Tim Hendon, said yesterday: "The local motor industry faces its own difficulties for sure, but nothing as bad as having to file for bankruptcy."

GMSA managing director Steve Koch said this week that the company would be debt-free by the end of this month.