Saving Jobs by Saving General Motors »
By Admin on Dec 1, 2011
General Motors is obtaining close to going bankrupt and to being liquidated. Ineptitude and greed of its management, its board, and its union are lastly catching up with the former king of the automotive business.
In liquidation, foreign companies will acquire many of its most modern plants. Any assets will be bought for cents on the dollar. Most of its work force of white and blue collar workers will become unemployed. The ripple effect on suppliers, vendors, and buyers will be ruinous. A liquidation will degenerate into a national depression.
Management has tried repeatedly to save this legendary company but did not have the vision, the capabilities, and the monetary backup. The GM board has been the major cause for the slow death of this business. In the face of continuing losses, the board insisted on healthy quarterly dividends. Not producing sufficient money and paying out dividends is stumbling towards the abyss. Any sudden downturn in sales or in margins forces the organization into insolvency.
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