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The reason of ruin GM

Headquarters GM

Having got rid of obligations almost on $128 billion, 16 unnecessary factories, a golf course and the becoming cheaper real estate, once the largest motor-car manufacturer of the world for 40 days has undergone bankruptcy procedure.

The last couple of years General Motors (GM) struggled with competitor Toyota Motor for a rank of the world leader. This struggle is lost: if from the cars realised in 2008 8,356 million to take away sold or liquidated brands Hummer, Saturn and Pontiac, there is to 7,729 million Indicator will decrease even more after GM will get rid from Saab (93 295 cars) and a control package in Opel/Vauxhall (1,503 million). Toyota in 2008 has made 8,973 million

Hardly it is necessary to regret for loss of similar leadership. Crisis has once again confirmed correctness of a saying «more — does not mean better». The big off-road cars of the American autocompanies have ceased to like consumers in first half of decade.

The autobrands bought worldwide became a burden. The political weight of automobile branch as a whole and GM as in particular long did not give the industrial giant to the company and in Washington to face politicians realities — GM has ceased to be effective for a long time already. The cars made by corporation, liked the American consumer ever less, foreign competitors have constructed in the USA more profitable — both on technologies, and on expenses for a labour — factories. All attempts something to change in the company last years did not solve these two problems. Company GM, once possessed half of automobile market of the USA, only 20 % now are content.

However, the car industry (without dependence from a condition) for many governments is a subject of especial care. Total volumes of made production make 86 million cars a year, and sales have fallen from 70 million in 2007 to 56 million in 2008 GM by $60 of milliard credits from the governments of the USA and Canada and huge concessions from workers at least has got rid of 16 factories, having left itself 34.

Photo by: infiniteunknown.net