GM Hand forced to Bankruptcy

More signs of governmental control of the economy comes at the hand of General Motors (GM). The Auto Maker has received an ultimatum from the government to file for bankruptcy by June 1st. After giving roughly $14 billion in federal aid GM has failed to shed bad assets and the government is forcing their hand in hope that GM can restructure and still save its Brand name and not allow the company to go under. One proposed plan is to launch a new separate company which will purchase all remaining “good assets” from GM. As for the bad assets they will be liquidated over the next several years as part of GM’s bankruptcy sale. This option would greatly reduce the size of GM’s company, yet currently is the only logical option as currently the company has no means in being able to sustain itself successfully for the next several years. As for investors within GM I would stay away. GM is still on shaky grounds with many unanswered questions. First I want to see a strong restructured business plan that provides a confident long-term outlook. They need a way to shed bad assets and keep good assets in hand which is why I applaud the plan mentioned as it will do that in a clear-cut format. I know I have been a basher of the American Auto Industry but I actually hope GM can make a successful comeback. The company has to have a new motto and build off next generation cars and move away from the large trucks and SUVs they have been producing the last several decades. GM needs to become a much smaller company as well. Part of their problems were they became so large, with so many weak links that when it all crashed it was to late to fix the problem. With proper management their is no reason that GM can’t make a stable comeback the question now would have to be when.