GM car warranties are covered, in theory

With General Motors in bankruptcy, many current owners and potential shoppers are concerned about whether the company will be able to continue to provide warranty coverage for their cars. Based on what we have been hearing from some readers, finding in our exploration, and learning from the CBS Early Show, concern is appropriate. However, as the company goes through the Chapter 11 process, the government and GM ensures that warranties will be honored.

The Obama administration set aside $361 million in a special fund to cover GM warranties on cars bought during the 60 to 90 day bankruptcy process. So the automaker will be the first and final line of defense for consumers who need to have their cars repaired. The government will simply ensure the company has the money to cover the warranties. So, if your car breaks down under warranty, the company will fix it.

If you run in to difficulties with your local dealer, GM encourages owners to contact their brand’s customer service number for assistance. 

To get answers to the most common questions and concerns about GM’s bankruptcy, visit our Auto Crisis hub.

—Eric Evarts