General Motors

Why General Motors went bankrupt Posted by Justin Lee on Jun 1st, 2009 and filed under Business, Finance. You can follow any responses to this entry finished the RSS 2.0. You can skip to the end and leave a response. Pinging is soon not allowed. General Motors Corp filed for loser on Monday, forcing the 100-year-old iconic car major which has been one of the most visible symbols of American capitalism and economic might into uncharted waters of nationalisation or government ownership. This is the third-largest bankruptcy filing in American history and the largest-ever US bankruptcy in the manufacturing arena. US Chapter 11 bankruptcy protection gives GM time to restructure its finance while being protected from its creditors. The bankruptcy is likely to modification GM drastically and 20,000 workers are likely to lose their jobs. GM has 92,000 employees in the United States and supports 500,000 retirees under the contract filed with the workers union. So why has the worlds best known car family gone bankrupt?

A killer combination In a nutshell, very high labour be, rising competition from hostile car makers, a frightening spike in sack prices, freezing of credit, the collapse of the American economy, drop in gross sales caused by lack of purchasing power among Americans due to the recession, et cetera consider formed a lethal concoction leading to the bankruptcy of the iconic carmaker. However, General Motorss problems run much deeper. here(predicate)s why. . . Unmanageable labour costs Over the years, protesting workers unions at GM managed to get the company to agree to contracts that provide lifetime benefits to the members. This excessive cost of lifetime benefits pushed labor costs through the roof. These costs have now reached an unmanageable proportion and the automotive titan just does not have enough money to either make these payments or to keep the company afloat, given the crepuscle in sales and plummetting profits. Expansion, upgrade, new... If you want to get a entire essay, order it on our website: Orderessay

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