When I walked into General Motors head quarters at renaissance center,
Being an automobile enthusiast, who managed to build a small go cart car during the college days and having spent initial days of work in assembly of Hyundai cars , being at the automotive headquarters was a dream. I have heard numerous times people saying Chennai/Pune is Detroit of India . after seeing that I could just think they were probably saying about the “OLD “
Even in wildest of my dream I would never imagine a 100 year old company which was # 1 for 77 consecutive years to fail so miserably. A company which was building amazing brands like GMC, Cadillac Pontiac, Saturn, Hummer and Saab cannot keep its market ? how weird.
So what would have gone wrong ? Rattner's fault ? Obama’s Administration, high oil prices,
The chapter 11 bankruptcy would be a disaster to the existing crumbling economy. GM will shed its Pontiac, Saturn, Hummer and Saab brands and cut loose more than 2,000 of its 6,000
One of the other main reasons was decentralized organization of so many brands . The brands which were created to compete between themselves didn’t realize they will loose their edge when they do not collaborate. will not use commonly things which they could have. Each of the brand where manufacturing their own components which again not a good ideas with current centralized supply chain concepts.
One of the other reason is of course the oil prices even though GM was posting many years of consecutive losses it was still running, But the huge increase in oil prices made even the patriotic American to buy a
Leaving all these behind as a person who have admired GM so much along with many, Still believes that GM will emerge even as a stronger company after bankruptcy . According to GM's bankruptcy filing , the company has assets of $82.3 billion, and liabilities of $172.8 billion. The new GM will have only $17 billion in debt, rather than the $54.4 billion it owed as of March 31
Let’s hope to see the new beginning of GM