GM is pretty much getting itself ready for bankruptcy. How does a company that was the number one automaker get itself into such a mess? Greed and poor management. I have read and heard that management is 80% of a companies problems. If that is true, how do companies run? The companies that usually make it big have one or several very intelligent people. Look at Apple for example, CEO Steve Jobs left for several years and returned when Apple looked as if it were headed for disaster. Upon Steve Jobs' return Apple grew and is now one of the leaders in computer based technology with its huge hit, the iPhone and other recent new products.
To bad for GM that they haven't had that intelligent person who could run the company and make all those right decisions. All they have now is the June 1 deadline by the government to come up with a restructuring plan to make itself profitable. The only way they can do that is to get the bondholders to swap $27 billion in debt for ten percent of its pretty much junk stock. Also in the next three weeks GM must make deals with its union, close factories, force hundreds of dealers out of business and cut or sell some of its brands.
For most people they would say that is impossible and I feel they would be correct. So pretty much all GM is doing is getting all of its "ducks in a row" before June 1 (Chapter 11). If GM proves me wrong there must be some intelligence that finally arrived.
I know the economy isn't what it used to be but GM was unprepared, they were living in the moment (Greed) like so many people do.
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