GENERAL MOTORS

General Motors



General Motors

Introduction

General Motors, a company with more than 100 years of history and one of the pillars of American industry, be declared bankrupt today, the largest U.S. manufacturing. The company has benefited from the Chapter 11 bankruptcy law, which provides legal protection to overcome the situation of difficulties (Beck, 2009).

Implementing the Decision

After several failed negotiations with creditors to redeem their debt stock, amounting to 27,000 million dollars, General Motors had to file for bankruptcy on June 1, 2009, with assets of 91,000 million dollars. The new company emerges from bankruptcy will be controlled by the U.S. Treasury, which initially disburse U.S. $ 30,100 million (Sange, 2009).

The U.S. president, Barack Obama, defended the decision to intervene General Motors, but said his administration has been forced to do so because to have allowed their "collapse" would have been "devastating" for the country's economy and for millions of U.S. Obama has stated in a public appearance at the White House that the process of suspension of payments by General Motors will be "longer" and "expensive" than he is about to conclude its competitor Chrysler. Obama, who acknowledged that the bankruptcy process will not be easy for many Americans, "expressed his belief that eventually emerge a new General Motors more" solid "and" competitive. " (Sanger, 2009)

After four months of contact between manufacturer in Detroit and Washington, General Motors, which has 230,000 employees worldwide and manufactures more than 20,000 cars each day, could not do anything else to declare bankruptcy to survive in a very different market that has dominated for 77 years and in which there is no room for a few cars that have passed into history by consuming vast quantities of gasoline. In addition, the announcement of the company that best exemplifies the American dream of the 50's and ...