No More Corporate Jets at Government Motors
GM is coughing, sputtering and conking out to a final gasp of the gas guzzler cars that lead to its ruin -declaring bankruptcy in a few scant hours -it will be gone as we knew it.
In filing Chapter 11 which was suggested in the fall of 2008 the inevitable has occurred and under the new terms GM is re-emerging as an new entity.
The corporation started a downhill spiral with a network of bloated dealerships in a bad economy where no one could buy cars. GM represents the largest bankruptcy filed in US history in spite of the US government pumping billions into the deflated company a victim of bad management at the wrong time. It also represents the first time that a large automaker giant took a hit and failed to recover from a failed leadership that did not prepare for leaner times.
The details of solvency remain at the hands of the new GM CEO Mr. Fritz Henderson who will hold a conference tomorrow Monday June 1st, 2009 which will be the lock on the door for many dealers in small communities across the nation and millions of jobs are now at risk. President Obama will outline the terms of the bankruptcy and where it is headed but the court proceedings are expected to last 90 days. A newer, leaner GM will emerge after the proceedings with a smaller workforce, fewer plants and more plants overseas building GM cars.
In spite of the fact that the US autoworkers unions made massive concessions on wages, benefits and pensions most jobs will disappear and pensions will be much lower than anticipated. The large bondholders that represent a 54 percent share in GM are exchanging their unsecured bonds for a mere 10 percent share in the new GM which they refused earlier. This stipend represents a heavy loss for stock holders and bond holders for one share of GM tomorrow will be worthless after dropping down to less that one dollar in the last few weeks.
A total of 14 plants will close, and the Hummer division has been sold to another company. A Canadian Company Magna will own a 20 percent share in Opel a German company and a Russian company Sberbank will own 35 percent giving them a majority stockholders position.
June 1, 2009 remains a dark day in the history of General Motors which was once one of the world’s greatest automakers and a sad day for the auto workers. No more corporate jets for these CEO’s.
TAGS: General Motors in Bankruptcy, GM Bankrupt, United Auto Workers, Opel Owns GM, Russian Sberbank part owner of GM, the New GM, GM Shuts down 14 plants, History of GM, Canadian Company Magma, Hummer sold, GM CEO Fritz Henderson, GM Files Chapter 11, GM Stockholders take heavy loss, failed leadership at GM.
Republicans like Senator Shelby were calling for GM to go bankrupt as his state enjoys the benefits and has given tax concessions to Toyota, a foreign automaker and therefore his dream is coming true.
First video is really good. At least someone is not whining about GM. This company is a complete failure – selling the same amount of cars as Toyota a year they go bankrupt… What else can be said. Such companies should not exist.
Except for the number of people GM employed, you can’t be serious?
PS. We removed the link you included -we do not accept comments for links.