General Motors has filed bankruptcy and is now officially going to cut jobs and lowers it work force to just 10% of what it once was. In the mid 1970’s General Motors housed over 395,000 employees and is now expected to have only 34,000 employees building cars. General Motors has had terrible leadership that has kept it from becoming a powerhouse in Detroit but instead remained neutral when others were leaping ahead with technology and design.

General Motors will be closing many of its plants once and doing their job cuts as expected. This again will keep sinking the economy in terms of unemployment as it will keep driving unemployment numbers up with close to 30,000 additional job cuts.

So is General Motors going to disappear and is Ford going to be the last one standing?

Well it may seem that way, but President Obama feels different about it, he says that he has a positive outlook on General Motors future despite the hard times they have gone through and that he has full confidence in the new leadership. I feel very different about this as it would take General Motors 5-10 years to make up the amount of lost time in technology, design and quality. The main reason General Motors failed was its inability to detach itself from the unions which kept labor costs to the roof, and disabled their competitive pricing. They were not able to build a $10,000 car for less than $25,000 and that was simply sad.

I believe that with this loss of employees, the company will now have more freedom to readjust its plans and actions and build higher quality products that have better technology and can compete with Ford, Toyota and other heavy weights that have remained ahead of the game. Time will be the deciding factor of where the company goes from here, but it will take some strong decisions to get this delicate company back on track. For now, the company will file Chapter 11 and salvage what it can to stay in business.

The company or whats left of it will continue to operate under the FIAT agreement and will no longer have t pay any lawsuits or wrong doing that was based on their old company.

Related posts:

1. General Motors Bankrupt
2. GM Going Bankrupt?
3. General Motors New Business Plan
4. Direction of Automotive Industry
5. GM Financial Stability