GM Officially Files For Bankruptcy After Mad 6-Week Dash

June 1, 2009

Michigan (ChattahBox) – Auto super-giant General Motors has officially filed bankruptcy after failing to convince the U.S. government that a bail out would be enough to save the failing company, Bloomburg has reported.

GM has been on the verge of bankruptcy for some time, but the turning point really hit last year. A worsening recession caused the majority of consumers to back away from large purchases of any kind, and brands that were failing to bring in a profit prior to the shift, such as Hummer and Saturn, began to take a heavier toll.

Now, after struggling to cut costs and reorganize their debt into a more manageable situation, GM has officially petitioned for Chapter 11.

The move is a huge blow to the auto industry, as well as the more then 100,000 creditors who will be taking serious losses, as the liquidation of assets will only allow for a partial recovery for a fraction of them. Those outside of the U.S. will not receive any compensation for lost profits in the bankruptcy.

GM plans on relaunching their new company within the next 90 days, and have stated their intentions on totally reinventing their image. Among the decisions that they hope will do that are the creation of more fuel efficient cars, and reorganization of International branches, such as the Saab in Sweden, and the selling of Opel in Germany.


Comments

One Response to “GM Officially Files For Bankruptcy After Mad 6-Week Dash”

  1. Old Man Dotes on June 1st, 2009 12:01 pm

    Americans need small, inexpensive, fuel-efficient, safe cars. GM has consistently failed to deliver on three out of four selling points for the past 30 years. It’s time the Board was fired, at the very least.

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