Wednesday, April 8, 2009

How GM can aviod bankruptcy



Posted By David Lucas,

According to some analysts on Wall Street, General Motors (GMnewsmsgs) lost credibility last week when the company said that it would be restating 2001 earnings.

Thats what it took for GMs management to lose credibility? How about years of mismanaging its production effort? Or refusing to aggressively streamline its product offerings, recklessly pursuing incentive strategies, failing to address ballooning health-care and pension liabilities?

In order for something to be lost you must have possessed it to begin with, and GMs management team hasnt had any credibility for years.

So now, as speculation mounts that General Motors will be forced into bankruptcy, are we really going to believe management when it says that it has no plans to file for bankruptcy protection? Of course not. Lets at least hope management has begun to realize that it's a possibility. 

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