Israel is going to feel more than a ripple from the General Motors bankruptcy tidal wave as parts suppliers are hit hard. However, most of Israel’s favorite GM cars still will be available.
GM was one of the pillars of America’s social-industrial society. During Senate hearings on his nomination as defense secretary for former President Dwight Eisenhower, former executive Charles Wilson was widely misquoted as saying, "What is good for General Motors is good for the country.”
He actually stated, in response to a question by a senator on whether he could make a decision adverse to GM, “I cannot conceive of one because for years I thought that what was good for our country was good for General Motors, and vice versa. Our company is too big. It goes with the welfare of the country.”
It turns out that the economic welfare of Israel also is partly dependent on the fortunes – or misfortunes – of GM.
Parts suppliers have been seriously affected. Until recently, Israeli firms supplied the giant company with $100 million worth of parts every year, according to Globes. The purchases have dwindled to a small fraction of that amount.
Millions of dollars that are owed to the firms may never be seen because debtors are protected by bankruptcy laws. Moreover, international suppliers such as Delphi and Visteon already are facing bankruptcy.
However, Israeli motorists who prefer their Chevy or Cadillac will not be without wheels, which will continue with full service support. The fate of Buick is still in question.
The three models are sold by Israeli auto importer UMI, in which GM has a 10 percent stake. UMI reports business as usual and said that most of its GM cars come from the auto manufacturer’s plants in Korea, which are in better shape than those in the U.S.
Non-profit organizations and trade schools also may be in a rut because of the bankruptcy of GM, which in the past has donated non-saleable vehicles to trade schools. The GM Foundation, managed by UMI, also supports driver pedestrian and child occupant safety training.