The nearly 700 Chevrolet owners on the Island need have no concern about the supply of parts or new vehicles as a result of the General Motors bankruptcy.

That is the view of Daniel Greenslade, owner of auto dealer Rayclan Chevrolet, which has sold the GM-manufactured brand on the Island since late 2004.

GM also owns a captive insurance company on the Island, General International Ltd. (GIL), whose chief operating officer Philip Heaney believes the reorganisation of the US auto giant could have long-term benefits for the captive.

Although the slimming down of GM will inevitably reduce premium income in some areas, Mr. Heaney is hopeful that thriving businesses in developing markets should underpin a bright future for GIL.

Yesterday's announcement of the fourth biggest bankruptcy in US corporate history was widely anticipated.

The Detroit-based company will launch a new company in 60 to 90 days, continuing to produce from its Chevrolet, Cadillac, Buick and GMC units for the US market. The bankruptcy court will supervise the sale or liquidation of unprofitable brands, such as Saturn and Hummer, and at least 11 unwanted factories.

Mr. Greenslade said the vehicles and parts he imports are built in GM plants in Korea, Mexico, Canada and South Africa, and are purchased through GM's Cayman Islands-based subsidiary, GM International Sales Ltd. (GMIS).

"I really think the issue is mainly a problem in the US side of GM and none of the cars we bring in are made in the US, so I'm not worried," Mr. Greenslade said. "My last shipment came from Korea.

"The Korean branch of GM is one of its more successful operations. It's less expensive to manufacture there and the quality control in Korea now is getting to be as good as it is in Japan.

"What's going to happen, I'm not sure. But I can't imagine they would stop production of popular cars."

Chevrolet models such as the Aveo and the Spark have proved popular on the Island and Rayclan has built up a strong market position in the space of less than five years. Mr. Greenslade said Chevrolet was the second most popular seller in Bermuda, after Kia.

Mr. Heaney, of GIL, said the GM captive has a staff of five in Bermuda and wrote $98 million of net written premium last year. The company is a Class 1 insurer, which means all of its business is providing insurance to its parent corporation, GM.

"About 80 percent of our business is underwriting employee benefits, so if more people are laid off, there will be less premium coming in," Mr. Heaney said.

"We also write some marine insurance — as GM ships a lot of cars around the world — and a bit of non-US liability.

"We know that certain brands are going to carry on and I think the Korean operations will be enhanced and we're looking at growth in places like China and India."

He said GIL could not be sure of its future, with much depending on the plans of the new GM's board of directors. But he said the captive gave GM great value, and estimated that it saved the corporation $40 million to $50 million annually on employee liability cover alone.

Mr. Heaney said the reorganisation would allow the dividing up of the "good GM and the bad GM" and he was very optimistic that the "good GM" of the future would prosper.

More on GM on page 27