General Motors is the second largest auto maker in the world, it employs about 266,000 people all around the world, and it makes its trucks and cars in 35 different countries.
A company like GM is certainly unlikely to go bankrupt, well, at least that what I was thinking and most people did too, but let me throw some new numbers about the 100 years old giant and let’s see if we are going to change our minds about it.
The ninth largest publicly traded company has suffered 38 billion dollars losses in 2007, they now have $16 billion in cash which means that they might fall below the minimum of $11 to $14 billion to keep its day-to-day operations, not mentioning the $3.1 million dollars hourly losses they will not be able to pay most of their creditors, and according to the US law it needs only 3 creditors to go to court to force GM to bankruptcy.
After all that, i don’t think that GM is going to make it until the end of the year, why the end of the year? Because they are counting big time on Obama’s plan of $25 billion dollars to bailout the 3 largest auto makers in the US.
If you think it’s just GM who’s going to go bankrupt, you are wrong. It’s a chain reaction, GM falls, those who gave loans to GM will fail too, and the saddest thing of all, is that 3 million people will loose their jobs, while those who made fool of every American are enjoying the billions they made on some island in the Caribbean.
I think taking the management’s money and use it to bailout the company, then through all those who were responsible for this tragedy in jail for life so they can’t get out and miss up people’s life again.
To read more about GM, please go to the following links;