Ever since GM filed for bankruptcy on June 1 2009, General Motors has been promoting that the new GM is better company that the old GM. Executives and others are determined to fix GM once and for all. GM declared they "clearly reflect consumer confidence in GM's long-term viability", even though they were down 30% from a year earlier. The current CEO of GM, Fritz Henderson does not blame this decline on the company’s shortcomings but instead he blames it on the expansion of strong global competitors with lower operating and legacy costs. He also blames GM’s fall on the deepening recession. GM also considered partnership with Renault Nissan but didn’t get the deal as GM asked for a huge cash payment. Oil prices rose to $150 a barrel and pushed GM to desperate measures. Hummer was sold to a Chinese heavy equipment manufacturer on June 2. But with everything collapsing together, GM had no choice but to file for bankruptcy and as the US government for financial assistance.
Friday, June 12, 2009
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