I'm sure Cig will be able to make this bike work great. My problem with the GMC is most people who buy it won't have the skill to make it run as it should. These people will be stuck with a bike that never worked right from the start that will wind up in the trash. I've worked on my fair share of dept store junk in the past. Maybe this bike is the one that will trancend the crap pile, and introduce the masses to a good bike for not alot of cash.
Till you know for sure... KHS makes the Urban-X for 300 dollars. It comes with a rack AND fenders (add 75-80 to the GMC) and will, with out a doubt, give you years of service.