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General Motors Bankruptcy

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It’s something nobody wants to go through but something that a lot of people have to go through. It’s bankruptcy. Bankrupt means (of a person or organization) declared in law unable to pay outstanding debts. There are different forms of bankruptcy also. One bankruptcy case that struck my interest is the one of General Motors. General Motors, also commonly known as GM, is a corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts. Their headquarters are located in Detroit, Michigan. They produce vehicles in 37 countries including the United States, under 13 different brands. A few of them include Chevrolet, Buick GMC, and Cadillac. GM was founded in 1908 in Flint, Michigan. GM was the leader in global sales for 77 sequential years. This was from 1931 to 2007. This was the longest lead over any other automakers. Because of their sales in 2008, 2009, and 2010, GM ranked second largest of all global automakers. In 2011, because of sales, GM had made its way back to the largest global automaker. However, in 2009, GM filed for bankruptcy. …show more content…

June 1, 2009 was the deadline to meet an acceptable viability plan to the US treasury, and forced GM to file for bankruptcy. The filing showed $82.9 billion in assets and $172.81 billion in debt. Because of downturn and unmoving credit markets, GM was finally forced into the arms of the federal government. President Barack Obama sought for GM to make a complete restructure and become competitive in the auto market once again. The government had given GM $19.4 billion to keep them upright, and $30.1 billion was planned for later on down the

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