Real problem of general motors

India
June 6, 2009 8:50am CST
What is the real problem facing by general motors? What leads them to bankruptcy? Is government is not supporting this giant company to survive the crises? What are option you put forward for the survival of this company?
3 responses
@faisai (1138)
• Hong Kong
6 Jun 09
I think the biggest problem is with the super heavy burden on the staff it is maintaining and the extremely large but ineffective dealers network. All these add up to the cost of the cars that it is selling. It surprises me when I heard that getting a job People are saying that their cars consume too much oil and under the surge of oil prices, that has been a big hit to people's desire for their cars. While I think that could be part of the reason, I think that this line of car suits some purposes where you want a bigger car for heavier duty where it is just justifiable that a heavier,bigger car will consume more gasoline. In the end, there is a mix of reasons that going through the Chapter 11 may give GM a great chance to correct all the errors it has made in all the years.
1 person likes this
• India
6 Jun 09
so you say that GM should focus on 'common people affordable' cars.middle class cars always turn to be the most supportive range of any automobile company.I think they will really look into this problem very seriously..thanks for the comment.
@dragon54u (31636)
• United States
6 Jun 09
I don't think they should get help to survive. They've had years to get their act together and have been plagued by short-sightedness and bad management. They've let the unions run them into the ground. If GM is allowed to fail, another company will spring up in its place. As it is, we are just giving them money to continue their bad business practices and they will continue to fail. The government is telling them what kinds of cars to make and the people don't want those types of cars--they will fail again and again. Capitalism is built on supply and demand and good business management. Those that fail are replaced by those who have learned from those failures and who make a better company. What we have now is drifting quickly toward Marxism and it is not good at all. Let GM fail. I can almost guarantee some other company will rise up that learns from those mistakes and employs as many or more people and will be solvent and successful.
• India
6 Jun 09
I think your view is too narrow.A new company can spring up by retaining GM.Bear in mind that it is not easy to make things ,but very easy to destroy.A new company can be brought up by retaining this auto giant.It take years to make GM as it is now.So don't even think of destructing it.Keep thinking on how to sustain it by repairing it damages.Think on the positive facts of GM too,how it gears the American economy..
@scififan43 (2434)
• United States
7 Jun 09
I think the real problem is that this car company failed to compete with its ravials. then maybe not very good mangement at the top. I belive the goverment will help suport the company but now without some condishions. As far as I am concerned the govement should not step in, since he company failed to compete, market forces should be allowed to take effect.