Indiana has a lot invested in GM future

INDIANAPOLIS (WISH) - One of the nation's largest employers officially emerged from bankruptcy Friday. General Motors is now a brand new company.

But can the leaner, meaner company keep its promise to make money and repay $50 billion in government loans before 20-15? 24-Hour News 8 asked attorney Ron Smith for the Auto Dealers Association of Indiana .

"I have significant doubts about whether or not they'll be able to do that," said Smith. "Simply because they cut so many dealerships in so many smaller communities that were bread and butter, GM type communities."

Smith said fewer dealerships in Indiana will make it tougher for GM customers to get service. Meantime, at the west side Indianapolis plant, slated to be sold or closed by the end of 2011, they're also not optimistic about the new GM.

"The economy is the driving force in all this. Unfortunately, we have politicians who care about rich people and not working people," said UAW Local 23 President James Kendall.

Indiana has a lot at stake when it comes to the future success of GM. Analysts say upwards of 50,000 people are employed directly or indirectly by the auto industry.

Indiana Manufacturers Association President Pat Kiely said the new GM is good news for Indiana's truck industry.

"Three of the truck lines are built in Fort Wayne and it appears, well we just got the announcement this week that they're adding investment there so that was good news for Fort Wayne and the GM facility there," Kiely said.

Much of GM's assets have been transferred to a company the United States government controls. That company is now debt and contract free.