General Motors recently declared Chapter 11 bankruptcy and will close about 2,400 new car dealerships nationwide. The Gila Valley should have no fear wondering if their warranties will be honored or where they will have to go to purchase a new GM vehicle, however, because Kempton Chevrolet is here to stay, according to co-owner Kyle Kempton.

As part of GM's restructuring plan, it is selling off some of its divisions in order to focus on becoming a "leaner, quicker, more customer-focused and cost-competitive company," according to its Web site. The company already has a preliminary agreement to sell its Hummer division and a proposed deal with Penske to purchase its Saturn line.

While it will only be offering four core products in the future – GMC, Buick, Chevrolet and Cadillac – GM will honor all warranties on all makes and models. Those vehicles and warranties will be honored at Kempton Chevrolet, and the dealer will have the same access it has always had to replacement parts. Kempton employs about 45 people locally, has been in business for 23 years and plans to be around for a lot longer than that, according to Kyle, who co-owns the dealership with his brother, Kip. He said he is proud to announce that when GM decided to reduce its new car dealers from 6,000 to 3,600, his dealership was "one of the fortunate ones to make the cut."

Kyle said there were four criteria GM looked at when it decided which dealerships to close – sales effectiveness, customer satisfaction, capital and profitability. The dealerships that were cut will have until Oct. 2010 to wind down their business.

"I want the Gila Valley to know that Kempton Chevrolet is going to be here because I think there is a lot of wondering. . ." Kyle said. "I want the public to know that we're here; we've received a vote of confidence from GM. We've signed a new agreement, and we plan on being in business here for a long time."

GM sent a letter to Kempton Chevrolet, identified it as one of its key dealers for the Chevrolet brand and selected it to remain part of the new GM.

According to its Web site, the new GM is expected to launch as an independent company approximately 60 to 90 days after June 1.

It will be built from GM's strongest parts and will offer award-winning vehicles (such as the Chevy Malibu), advanced green technology and the ability to generate sustained bottom-line results.

One of GM's new passenger vehicles, the Chevy Volt, is an extended-range electric vehicle that runs exclusively on electricity for 40 miles. The Volt produces no emissions while in an all-electric mode and can be plugged into a standard wall outlet for recharging. After traveling more than 40 miles, its range- extending power source creates electricity from gasoline, E85 or biodiesel fuels to recharge its lithium ion battery pack and keep it at a 30-percent charge while in use.

It also creates electricity when the brakes are applied in what is known as regenerative braking.

According to GM, the Volt should be available in showrooms throughout the United States in 2011 and will cost about $32,500 after federal government rebates for purchasing an alternative fuel vehicle are given.

Kyle said he is excited about GM's restructuring and that his dealership will be offering great vehicles with the same service customers in the Gila Valley have experienced in the past.

"We're here to honor the warranties, to provide service and to sell vehicles for a long time to come," he said.