GM: Live to Die Another Day

General Motors (GM) has been in the news a lot for the past week as financial troubles grew for the automotive giant. Back in December, Congress gave GM a 3 month lifeline, pumping billions into the automotive industry. However, as the deadline approached, GM failed to reach negotiations with the union. Their CEO was ousted and the whole stock market suffered terribly.

If we had just refused to give GM money, they could have filed bankruptcy a long time ago and all this would have been over. GM claims bankruptcy would have been a lot more than what they were asking for to get back on track. GM does not deserve to get back on track! Had they been run by innovative minds and really meant that, the CEO would have still been there and they would not have had to file for bankruptcy now.

Obama had a press conference and said the government had no interest in running GM. This was a major positive. This took a turn from turmoil of the financial industry as the government has struggled to get banks on the right path.

The current bankruptcy plan calls for GM to split apart to retain the most profitable parts. Had this happened 3 months ago, we would not have wasted all that money for no apparent reason. Splitting the company now is a giant step forward. There is no sense to kept the company together as it is quickly losing marketshare.

Bankruptcy is the best thing for GM now. They are not innovative, they cannot keep up with the latest Japanese automobiles, and they do not deserve taxpayer money. Keeping the profitable jobs will be best as we try to keep unemployment from soaring. Final point, GM is not making itself cash money, you cash money, and will not make cash money in the future. Another lifeline allows them to die another day.