According to some reports, there will still be some impediments to overcome before GM can see its new beginning. Most of these processes will not have GM calling the shots— the bankruptcy judge still needs to rule on urgent matters by July 1. The court will hear a call for sale based on Section 363 which will involve putting on the market of the GM assets.

The General Motors is eyeing to form a new company by mid July and try to cut its time in the bankruptcy court. Among the major issues needed to be addressed is the reorganization.

The car manufacturer aims to chop of from its rank hundreds of dealerships across the United States before the end of 2010. The dealers who will remain in business can definitely smile but be ready for tougher demands for their businesses.

In the near future, GM representatives are set to meet with the dealerships to discuss their sales goals and the new setup that the dealerships must adapt to.

According to insiders, Gm will be focusing on their brands and there is a looming anxiety among dealerships that non-GM services and goods will be eventually discontinued.

Some dealerships may not agree to sign the new contract with GM and will have to raise some issues, there is a hint though that they will be terminated by the bankruptcy court if they will not sign.

The move is supported by as much as 74% of the union locals and is set to help make the American brands more competitive with the foreign brands of vehicles rolling into the US shores.

The deal with the UAW focuses on the essential elements like decreasing the production cost per unit and explore possibilities on retirement plans. These points will help GM handle its large population of retired workforce and its current wages and benefits for the employees. At present, the changes will affect about 54,000 employees across 46 plants and offices in the United States.

The element often overlooked on a competitive gap analysis is the long history of the company in terms of employment. Foreign car makers like Nissan, Honda, and Toyota may be building thousands of cars in the US on a yearly basis but does not have the big overhead of retired employees to manage like that of Chrysler, Ford, or GM.

The efforts of the negotiating panels from both the UAW and GM will give way to the closing in of the competitive gap and help the auto industry. Everything is also made possible with the cooperation of the employees and retirees of GM.

General Motors is against the wall as it faces the June 1 deadline of the federal government to restructure their business and come up with compromise deals with its debtors so they can get more loans.

Insiders have warned that the car manufacturer might not be able to beat the deadline. Experts foresee GM to seek bankruptcy protection when the bell rings on June 1.

Earlier reports cited Fiat as the favored bidder with greater than 50% potential of winning the Opel takeover as based on the expertise that the company has. The latest information suggests that some German officials have expressed preference for the offer from Magna International.

GM officials are also skeptical of the plans of Fiat top executives to combine the Opel business with its stakes on Chrysler LLC and the automaker’s operation in Europe and Latin America.

According to reliable sources, GM is bargaining for at least a 40% share of Fiat’s planned enlarge group. The latter is planning to give GM only a 10% stake.

Officials from General Motors have not commented on the matter publicly. The German government released reports that Opel will rely on bridge loans to survive while the bids are being considered. The evaluation process is expected to take several weeks.