GM one of the largest car manufacturers and employers representing the United States of America filling for bankruptcy protection evokes a question "who was managing the money"? My opinion is that they did not change with the times and remained a manufacturing company. Changing brands to attract buyers versus making one or more products really well. I also believe that there are just way to many cars outthere to begin with.
GM is looking to come out of bankruptcy court as a profitable company. GM's bondholders will be taking large hits in the bankruptcy settlement and look to own only about 10% of GM. The remained will be approximately 20% to GM's auto union and 70% ownership by the US government. GM has a tough road in a flooded car market and will continue to cut brands such as Pontiac and Hummer.
I dont know if the decision by the US government to bail out GM is the right decision or not. If it was up to me i would have let most of the companies that put themselves in these situatuions fail and go into bankruptcy. The boards of these companies haven't kept up with the times, and their money managemnet skills are pathetic. If they were to fail it is just another opportunity for a better company to step into its place, bye bye GM.
The government should never have bailed these guys out nor the banks. Capitalism becomes stronger when the weak are weeded out. The only winners in this whole mess is the auto unions. Poor management and government demands for products we the consumers don't want contributed to this.
GM one of the largest car manufacturers and employers representing the United States of America filling for bankruptcy protection evokes a question "who was managing the money"?
ReplyDeleteMy opinion is that they did not change with the times and remained a manufacturing company. Changing brands to attract buyers versus making one or more products really well. I also believe that there are just way to many cars outthere to begin with.
GM is looking to come out of bankruptcy court as a profitable company. GM's bondholders will be taking large hits in the bankruptcy settlement and look to own only about 10% of GM. The remained will be approximately 20% to GM's auto union and 70% ownership by the US government. GM has a tough road in a flooded car market and will continue to cut brands such as Pontiac and Hummer.
ReplyDeleteI dont know if the decision by the US government to bail out GM is the right decision or not. If it was up to me i would have let most of the companies that put themselves in these situatuions fail and go into bankruptcy. The boards of these companies haven't kept up with the times, and their money managemnet skills are pathetic. If they were to fail it is just another opportunity for a better company to step into its place, bye bye GM.
ReplyDeleteThe government should never have bailed these guys out nor the banks. Capitalism becomes stronger when the weak are weeded out. The only winners in this whole mess is the auto unions. Poor management and government demands for products we the consumers don't want contributed to this.
ReplyDelete