GM files Bankruptcy…

GM%20General%20MotorsAfter more than half a century the biggest car manufacturer filed bankruptcy.The GM bailout probably will cost close to $100 billion, counting money from the governments of the U.S., Canada and Germany. The new company should emerge and be able to compete in the brutally competitive auto industry. Whether it will actually prosper is far less certain, but some things are beyond dispute. Bankruptcy didn’t have to happen and the fact that it did happen is incredibly sad given GM’s many contributions to American society and culture.

The question for Presidents George W. Bush and Barack Obama was whether to stand by and watch, or instead to use the public purse to shape the bankruptcies of both Chrysler and GM to mitigate the damage to a shaky U.S. economy. They intervened, which was the unpleasant but correct decision. Mr. Obama’s automotive task force has done its job pretty well, forcing the companies to make difficult decisions that they should have made themselves long ago. GM will shed four of its eight U.S. brands — Saab, Saturn, Pontiac and Hummer — thousands of dealers, 11 factories, and much of its debt. It is no small irony that a Democratic administration brought in a bunch of private-equity types to impose rational management on big business.

Advertisements

Comments on: "GM files Bankruptcy…" (1)

  1. Being a proud GM car owner (Corvette), this news hits me with sadness.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: