GM Bankruptcy

Another Entry that I’m cleaning out.. I may revisit this one and post an updated version later.

This was dated June 16, 2009 at 10:58 AM

So when I heard GM has filed for Chapter 11 Bankruptcy I was relieved.

Honestly, I’ve never been a fan of GM. I used to live in a GM town (the one where they used to make those gas guzzling SUVs), I’ve driven GM cars (both on rentals, and long term ownership), and I’ve had friends who worked for GM.

So if I’ve had so many ties to GM, why then was I relieved? Because the management of GM has finally been forced to face reality that their business model is broken, that they are no longer, nor will likely ever be again the market leader that they once were.

I watch companies like they’re people. (Yes, I know they are not people, but they’re made of and led by people, just a lot of them, which can lead to schizophrenic behavior at times if you consider the company to be one person.) GM has been like the older uncle who is old and stuck in his ways but he’s hurting himself, everyone in the family knows what he’s doing for himself isn’t good, but we can’t force him to change.

So let me dispel one quick myth: GM failed because of the credit crisis. Now I don’t doubt that the credit crisis was a contributing factor to its failure, but if someone is walking on the top of and a strong gust of wind blows them off…