Will Barack Obama have his hands full with GM? (Image: Flickr)

To help GM emerge from bankruptcy in less than 90 days and be prepared to turn itself around, Obama is expected to announce that GM will be infused with $30 billion. That latest infusion will climb the amount invested in General Motors to around $50 billion.

To survive in the competitive automobile industry, the White House will want GM to be a smaller and more mobile company. Expect to see fewer workers, fewer factories and few dealerships. Also expect to see GM produce smaller cars that offer practicability in terms of price and gas mileage.

General Motors will join Chrysler as U.S. automakers who have been forced to file bankruptcy recently.

Post from: EveryJoe

Barack Obama: GM to File for Bankruptcy

Considering that the federal government has given GM a deadline of June 1st to find a suitable solution for all of their creditors and considering that GM’s creditors are far from happy, the writing appears to be on the wall. If the filing for bankruptcy doesn’t occur at the end of this week, it very well could take place at the beginning of next week.

When the bankruptcy process is all said and done, most industry experts believe that the United States government will be the one guiding the new GM ship. The government has already given General Motors more than $20 billion and will end up having to give the company many more billions. However, at this point, there doesn’t seem to be any other viable options.

Some experts are still holding out for a miracle and insist that the creditors could start changing their mind once everyone’s backs are against the wall, but that scenario appears to be a long-shot at this point.

General Motors Fountains (Image: Flickr)

Post from: EveryJoe

When Will General Motors File Bankruptcy?

General Motors - Source: Flickr

The bounce back could very well be temporary because of fear that GM could file for bankruptcy in the coming months. Despite receiving nearly $15 billion for the United States federal government, the Detroit based company continues to lose money at an alarming rate. In 2008, GM reportedly lost more than $30 billion.

Although the company says that there is no impending bankruptcy plan of action, they are asking the federal government to help out without another $30 billion bailout. As of now, there’s been no agreement made on a second round of emergency funding. In the meantime, General Motors is attempting to restructure their business model and also work with creditors to help find a way to stop the bleeding.

The main reason why GM is in so much trouble can be linked to the fact that most Americans are lacking disposable income and aren’t shopping for new cars. Instead, older and cheaper cars are become more prevalent on the country’s roadways.

Source: Wire Reports

Post from: EveryJoe

GM Stock Lowest Since 1933