I Drove My Chevy to the Levee... Goodbye to the American Automotive

The news may not be shocking to many Americans who had been watching the news over the past several months, but the reality is about to really set in as one of America's biggest automotive manufacturer's will file for bankruptcy sometimes this week. General Motors,who has been having financial troubles long before the economic crisis really hit hard last fall, will have no other option but to file for Chapter 11, due to lack of interest in their "Debt for stock" proposal from most of the companies bondholders.

Despite the bailout that the company had received from Congress at the end of last year, they still owe GM bondholders $1 billion , which surprisingly they do not have. The deadline for the $1 billion debt is on June 1st, which GM CEO Fritz Henderson said that the company would most probably file for bankruptcy. It seems that GM will file for bankruptcy and I wouldn't be surprised if they did it tomorrow morning. That of course means that the market is going to plummet and unemployment rate is going to really sky rocket. One thing that I am certain of is that once GM goes bankrupt, things are really going to get ugly and this is going to put a sharp pike in everyone. We live in a society where we are overly dependent on cars and trucks and when the largest automotive company in America goes under,think about how that's going to impact of our lives. All of these workers will be laid off and the jobs are going to be outsourced to outside the United States. It's really disgusting and even if GM manages to get themselves out of Chapter 11, it's still too much. They're better off liquidating their assets and send some of their makers to Ford and the rest outsourced. Remember that Ford, the only one of the Big 3 who has not filed for bankruptcy, will take a slight hit too once GM files for bankruptcy. Ford must find ways to redeem itself from falling into deeper holes otherwise they will meet a fate similar to GM and Chrysler over here.

It also bothers me that the new GM CEO Fitzpatrick has to play a fall guy for Rick Wagoner. Wagoner was able to wipe the dirt off his shoes and get away scot-free leaving his successor in the hot seat. Wagoner had to know that the company was going to go under in a matter of months, so he took Obama's recommendation and resigned from his position. The media should turn the attention back on Wagoner, who is one of the reasons why GM had become involved in the mess that they are in. If you want to read more about GM's bankruptcy deadline check out the link posted.


This has been Ian Feldman speaking words of wisdom.