Will GM Go Bankrupt This Year?

This topic is being passionately debated around the country every day. It’s obvious that not everyone can agree on the same solution. This is a very complicated situation, and there are pros and cons to each side of the debate, for letting GM fail or for government intervention with financial support.If GM Fails Hundreds of thousands of workers could lose their jobs, and many of them are paid very well. This includes workers at companies related to the auto industry, such as parts suppliers. So the loss of so many incomes would directly affect local and national economies. Of course, a restructuring of the company does not mean it ceases to exist and all employees are left without jobs. Layoffs are a definite possibility, but without employees a restructured company cannot exist.
here is the long-term decline in their sales, due to various reasons, including vehicle quality, fuel efficiency, and attractiveness to customers. Then there are the huge labor and “legacy” costs, including pensions and benefits to current and former employees. The company and the union have both made poor decisions in the past that helped in the short-term but is hurting in the long-term, which has finally caught up to them.That would prevent billions of more dollars from being wasted or lost for shareholders, bondholders, creditors, employees, dealerships, and taxpayers. This is probably why the government so far has chosen to help them with some temporary cash to keep them afloat for a little while longer, hoping they will make drastic changes to their business model. Fortunately, the government and the President have put conditions on that money, basically saying if they don’t make enough effort to turn themselves around, the loans will be recalled, which would likely force a bankruptcy.