Wall Street Journal

By | October 30, 2014

There are already investing in this company until the news is widely conocida.* * are too big to fall? GM collapses into the arms of the Government titled the Wall Street Journal. Clear that GM is too big to fall, and that’s why Obama had decided that American taxpayers will be who will contribute more money to a company that has been with them for 100 years producing vehicles. GM has already received $20 billion and will receive US $30 billion more. That money will come out of the now almost forgotten, Rescue Fund for the financial system created by a value of US $700,000 million. Huge liabilities that should be facing GM makes all efforts to recover the company appear insufficient. Over the weekend, GM won the support of 54% of its bonds of debt-holders US $27,000 million, which offered its support to the Government’s plans to change of United States.

Despite this redemption of debt and the new contribution of the U.S. Government, no one can assure that GM do not need more dollars to survive. And in my opinion, most likely requiring new funds. Inefficiency in GM is evidenced in restructuring measures that will be pursued: Elimination of brands with little power, reduction in the number of dealerships (a cut of around 2,600 dealers), who were in an excessive number, reduction in the number of staff (with the Elimination of about 21,000 employees-one third of the total – and pension cuts) and transformation in production towards specialization in other market segments that also incorporate cars with fuel consumption more efficient and the use of renewable energy. For Obama, GM will resurface of Chapter 11 stronger and more competitive. Now well, will manage to achieve a fortress and sufficient competitiveness to recover its profitability? Since the 2004 that the company does not present a balance sheet with positive results.


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