General Motor Bankruptcy Essay

1832 Words8 Pages
General Motor bankruptcy Introduction General Motors Company, one of the world’s largest automakers, estimated in 1908. With its global headquarters in Detroit, Michigan, USA.GM employs 209,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. (Elizabeth, GM, 2009). GM was the largest automaker for 77 consecutive years from 1931 through 2007. It is longer than any other company in the world. In 2008, it was surpassed by Toyota (Elizabeth, GM, 2009). 2009 was a very…show more content…
Those plants employ most of the more than 20,000 U.S. workers. GM cut them by the end of 2010. (Isidore, 2009) The collapse of GM also results significant impact on their shareholders. Investors in $27 billion worth of GM bonds, including mutual funds and thousands of individual investors, will end up with new stock in a reorganized GM worth a fraction of their original investment. The government's plan calls for 10% of the new GM to be owned by existing bondholders, while a United Auto Workers union health-care fund will own 17.5%. However, Owners of GM shares, which closed at just 75 cents a share on Friday of the bankruptcy week, would have their investments essentially wiped out. So their investors incur enormous loss from it. In addition, the collapse of the company also directly and indirectly affects interest on consumers. The ownerships of GM cars remained unchanged due to their bankruptcy, however, their warranties will still be honoured, and the potential customer lost their famous auto brands like Pontiac, Saturn, Hummer and Saab. They can never buy the USA owned Pontiac, Saturn, Hummer and Saab any more. The value of the brand perceive by the consumers is depreciated, which indicate the loss from consumers who earned the cars. Issues GM was the largest automakers in the world for more than 70 years. It produced more than half vehicles in USA market 50 years ago. But it fell down to less 20% in was caused by a series missteps. Demand
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