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Bankruptcy General Motors Corporation the right decision, to improve machine-building industries.

Submitted on Mon, Jun 1, 2009 (11:04 p.m.)

Submitted by shukhrat

Associated Press writes "In a defining moment for American capitalism, President Barack Obama ushered General Motors Corp. Into bankruptcy protection Monday and put the government behind the wheel of the company that once symbolized the nation's economic muscle". "We are acting as reluctant shareholders because that is the only way to help GM succeed," Obama said of the temporary nationalization of the 100-year-old company. Media also write - The prepackaged GM bankruptcy deal - crafted by the administration, the company, the United Auto Workers union and a group of bondholders - would give the US government a 60 percent controlling stake in what was once the world's largest automaker. An additional 12.5 percent would be under Canadian government ownership.

"What I have no interest in doing is running GM," Obama said. His only goal, he said, was to get GM back on its feet and then "to get out quickly." What can I say about this? In general, I think the process was very timely and well thought out. And it will be useful to the American nation. Let us turn to some numbers.

So, General Motors Corporation. A bit History. General Motors Corp., One of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 244,500 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. The truth is an impressive company?

Now a little statistics. FinFinanNet sales and revenue: Net sales and revenue (Dollars in millions) Automotive sales 2007 - $ 178,199 2006 - 171,179 2005 $ - $ 158,623; Financial services and insurance revenue 2,007 - $ 2,923 2006 - $ 34,422, 2005 - $ 34,427. Total net sales and revenue 2007 - $ 181,122, 2006 - $ 205,601, 2005 - $ 193,050. Worldwide production volume (units in thousands) 2007 - 9.286 2006 - 9.181 2005 - 9.051. Adjusted net income (loss) 2007 - $ (23), 2006 - $ 2,176 2005 - $ (3,205); Diluted earnings (loss) per share: 2007 - minus%, 2006 - 1.1%, 2005 - (1.7).
GM had a good performance on sales. Upshifting in Europe with record 2007 sales. Led by gains in its Opel / Vauxhall, Chevrolet (Europe's fastest-growing brand by volume in 2007) and Cadillac brands, GM Europe sold almost 2.2 million vehicles and delivered year-over-year unit volume growth of 9 percent in 2007. A new HUMMER built in South Africa. The global expansion of the HUMMER brand moved forward in 2007 with a right-hand-drive H3 built in South Africa for export to Europe, the United Kingdom, Ireland, Australia, New Zealand and Japan. GM South Africa demonstrated its commitment to quality in 2007, with the locally manufactured Opel Corsa Utility and Isuzu KB ranking number one and three, respectively, in the JD Power and Associates South Africa Initial Quality StudySM Cadillac CTS: Motor Trend's 2008 Car of the Year . The hot-selling 2008 Cadillac CTS burned rubber out of dealers' lots after becoming available in the fall of 2007. In one of the most anticipated new-car launches in years, the all-new Chevrolet Malibu served notice to the perennial midsize sedan leaders in the United States. Consumer demand has been very strong for the Malibu, which was named the 2008 North American Car of the Year. The recently restyled Aveo5 hatchback further defi nes the new face of Chevy. From Detroit to Shanghai, São Paulo to Russelsheim, GM's lead brand just keeps getting better and growing around the globe. The models are good, there is no dispute, but the HUMMER for example, is not economical car. Given the crisis in the oil market, production HUMMER is not profitable. Therefore, in the near future, GM plans to focus on four core brands - Chevrolet, Buick, Cadillac and GMC - and get rid of the Pontiac, Saturn, Hummer and Saab lines.

All this to say of course about the success of the brand GM. But this external side of success. And the inner side was that company have large debts to the state, and many of the issues addressed in the loan. In other words - "the beautiful life of a loan." But this can not happen forever! It should be mutual benefits. And now has come - Hour of Truth. GM company declared bankruptcy. And it the right decision, because the multibillion debt will always drag the company down. A popular brand, the absence of debt, and the State among the owners of the company can make a revolution in the engineering industry. Create in the near future a completely new type adapted to modern realities of the car. Most important element of GM future success will be great cars, trucks and brands: The all-new Chevy Traverse mid-size crossover; The Cadillac Escalade and Chevy Silverado; mode hybrids and others. Technology strategy, driven by the need to reduce oil imports, oil consumption and CO2 emissions around the world. Only a strong government can actually help to further reduce structural costs GM in North America and the resurgence of the company. A prudent management of GM under the leadership of the Government. Why Government? Because the experience of many years has shown that global-scale companies built for the benefit of a small handful of people over time have no prospects, as an engine of the economy. Owners of large companies and monopolies more interested in personal gain, but the government as an neutral owner in favor of a nation and state. Therefore, if in the future GM will be 51% or more of the shares owned by the State, it will be optimally correct option. The reasons are many. The main reasons that the state has a large financial opportunities than private owners, the government more power to improve the production in accordance with the needs of the nation. Now during the global economic crisis, only the government can quickly, efficiently and consistently carry out actions to create eco clean car future design, and most important affordable at a price to the average income of the inhabitants of our planet.

Shukhrat Khakimov, JD, writter

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