Saturday, June 6, 2009

GM bankruptcy: Largest ever in U.S. manufacturing history


An icon of the American industry, General Motors, formally filed for bankruptcy on Monday. The world's largest automaker was under tremendous debt that totaled around $173 billion and $82.29 billion in assets, for which GM filed for Chapter 11 bankruptcy to keep it afloat.

This bankruptcy filing was the fourth largest in U.S. history and the largest ever for an industrial company.

According to President Obama, this bankruptcy filing will help GM to move toward profitability. He said that he is "confident" about the viability and achievability of the plan, and the automaker will emerge from it. The U.S. government is holding about a 60% stake in the century old company, which is quite a gamble by the administration.

The chairman of GM, Kent Kresa said in a written statement that this would be a new beginning for the General Motors and he is absolutely confident that GM will bounce back to operate successfully around the world.

The largest automaker is now planning to close around 14 plants amongst their 47 plants. This would again affect in increasing number of jobless people.

The key question is now whether the fallen icon will get back on its feet and can GM regain the title of being the largest automaker of the world.


2 comments:

  1. Great information. thanx for sharing

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  2. Great article, so informative. Thanks for this posting ;)

    ReplyDelete