The current position of General Motors might scare people and turn them away from buying the cars from them; however, filing for bankruptcy is not the same as going out of business.

In order to stay in existence and at the same time go away from extremely high debt, a company can file bankruptcy under Chapter 11 of the United States Bankruptcy Code. This helps to reorganize the company, eliminating non-profitable aspects and concentrating all attention on the ones that really work.

New GM is hoped to start functioning in September. Some facts about the restructuring have already been announced: nearly 40% of all dealerships will be closed, but it still leaves 3,600 of them open. This is more than twice as many as the world biggest automaker Toyota has in the U.S. Fourteen factories will be closed, but GM is planning to increase the production of cars in the U.S. By 2014 GM plans to build around 70% of all its vehicles on the American territory.

Despite of all changes and bankruptcy talks the customers should not turn away from General Motors. Obama administration that works on the restructuring says that all warranties will be honored and that the suppliers will continue making parts for the GM cars.