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General Motors which was earlier the top auto maker in the world has fallen down from its dominancy to become shadow of what it was in the
past. Most recent talks are that the company's auditors are not sure about the
finances and how to sustain the operating expenses without going
bankrupt.

The predicament faced by GM is not understood clearly by the people. The only question to be posed in front of us is that whether the
government should help the company by providing bailout or just leave it on its
own to bankruptcy. The company's business model is a total failure so it is wise
to think whether reorganizing its business model will have any positive impact.
The fundamental difficulty that the company faces is a cynical feedback loop.
The company's trouble is exposed and known to everyone but it hopes to get back
in shape through restructuring through heavy leverage given to investors and
unions. But it has no other option except to file for bankruptcy as it makes
much more sense but it gives raise to another problem. No one would buy a
product for $30k nike vapormax homme pas cher , $20k or higher from a firm that is going bankrupt. If you are still doing it, you would one among the very few people doing it. The
company proposed its restructuring plan based on the high sales that are
expected in the coming years. The bottom line is that it would require quite
some time for sales to recover hence its plan would be a total failure
considering its high estimated sales.

There is another problem for which GM cannot be held responsible but the poor state of private financing is to be
blamed for. Whenever a company declares it has gone bankrupt it gets financing
to save the company and its employees. This financing is monitored under
bankruptcy court so that it gives assurance to creditors. The only hope that GM
has is getting bailout from the Federal Govt. nike vapormax femme pas cher , though it has already been given funds of over $10 billion, it really had a minimal effect. So the company has asked for another $30
billion. In reality grossiste nike vapormax chine , the sales projection for the next year looks not so promising hence the company actually needs around $100 billion. This may cause
confusion as to whether to save GM or just let it go down. There is no point in
investing $100 billion in a company that has no clear way to make profit. If we
still go ahead at the cost of tax payers' money it is unlikely to yield
desirable results considering the economic situation. This popular auto maker
did report that its own survival was in doubt and the White House said that
assisting the auto industry was a priority.


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