BUSINESS BRIEFING / AUTOS
TIMES WIRE REPORTS
General Motors Corp. says the U.S. government is guaranteeing the warranties of its cars and trucks sold in Mexico.
The government announced that it would guarantee warranties of vehicles sold in the U.S. starting March 30. The move was designed to stimulate sales by easing fears GM might file for bankruptcy protection and wouldn’t be able to back its warranties.
GM says it will pay part of the warranty guarantee costs and will borrow the rest from the U.S. government. The guarantees cover GM vehicles sold in the U.S. and Mexico during the company’s restructuring period.
