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GM files bankrupt: The end of the giant GM era June 1, 2009

Posted by Null in Business, News.
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obamaGMSource: The New York Times

The US automobile giant GM which was founded in 1908 have just filed bankruptcy. This is definitely a tragic end to a very old business giant. GM brands includes Chevrolet, Hummer, Pontiac, GMC, Cadillac, Holden, Saab, Vauxhall, Opel, Buick, etc. The company fell into a liquidity crisis during the global economic recession and asked for financial assistance from the US federal government.

Today, the US President Obama has said on his speech that GM is a very complex organization with worldwide operations and it would be a reluctant investment on the company not just because it employs many workers but also carries an American pride and provided economic contribution to the US. The governement will provide $30 million after the bankruptcy.  GM’s operation in other parts of the world will somehow survive (God knows how). For example, the Canadian government will support the GM Canada; the Australian government will support the GM Holden with financial loans. But I am just wondering, who’s gonna convience the general consumers to purchase a GM auto since the company is bankrupt! As part of the bankruptcy, more 14 plants in the US will shutdown and the company will cut off approximately 21,000 jobs and axe 42%  of its dealers.

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1. Anonymous - November 16, 2009

GM just reported their third quarter loss of $1.2 billion…The figure is actually less than the company expected ….and it has decided to start repaying loan with a $1 billion payment in December …it looks like GM could actually make full repayment of the $6.7 billion loan it took from US government by 2010…


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