Comments on: Why General Motors went bankrupt

By: Car Dealer

Car Dealer — Mon, 30 May 2011 19:37:50 +0000

Tom is right, it was not the unions and not the wages, it was the mis managment of the sytem. As a multiple dealership operator, I could nearly payff the national debt with the money GM wasted on foolish items and promtions. Sad new is they have not learned anything. They still insist on using huge rebates which insult the value of their product, they stretched the terms, they again do leasing with no way out of the lease at the end and to make matters really bad, they still finance cars with negative equity for long terms. The people at the top have no clue on how to create sales tomorrow by what they do today. Everything in the world of GM is “NOW” or TODAY….Gas is back up to $3.50 a gallon and the Volt will not get the job done. The Cruise has no gross for the dealer and pulls from the Buick Line. GM went broke because they ate their young. Get rid of GMC and Buick and keep Chevrolet and Cadillac. Face it GM, you are no longer a giant in the industry. Keep doing what you are doing and you will file again!!!

By: tom

tom — Tue, 14 Dec 2010 20:42:36 +0000

Very poorly assessed article. The writer did not research before he wrote this article. The union had very little to do with GM’s problems. All contracts signed by GM where done so with GM knowing the cost of them in the future. In 1970, the 30 years and out retirement. GM analized the cost of this at the year 2000 and the the estimated cost in retiree benefits. They then knew to put aside funds each year to pay for this. They knew the cost so if they could not afford it GM would not have agreed to it. Instead, GM decided to invest money in foreign countries and ignored funding retirement and pension plans, that’s not the unions fault. As the United States government report stated, upper management burnt through over 30 billion dollars in 9 years on advertising, promotions, sponsorships, airplanes for executives, and dozens of foolish items.

By: christian

christian — Wed, 23 Sep 2009 04:11:47 +0000

yeah. people don’t think twice before they act.

By: tokico

tokico — Wed, 23 Sep 2009 04:10:11 +0000

this is a classic case of an organization erring by not really computing the long term impact of the decisions it has taken..the same happens with most of the organizations globally and locally wherein we make financial decisions by computing returns over a period of say 1 or 5 to max 10 yrs.

By: Millie

Millie — Mon, 15 Jun 2009 14:03:47 +0000

What Can we common Poeple do about the Bailout? Nothing.. we just have to wait and see if the company comes up and develops new cars and prototypes to please the american consumer