Mike Pouraryan
GM: What happens now?
Total Confidence....Not (Source: http://www.gm.com) ?
GM's is rumored to be near bankrupcy. For years, the statement held true that "what's good for GM is good for America". Now, GM is about to face an uncertain future.
This morning, I saw reports that all employees and suppliers will be paid by Friday. GM is officially denying it. But, the bondholders have rejected the debt-for-equity swap. The UAW, who has stepped up to help GM, will be offered a smaller stake. Already, the dealer network has been axed considerably.
As I await the other shoe to drop, I am sure that the Government will do what needs to be done to truly insure that "Total Confidence" is maintained in GM vehicles. GM, though, has undergone a transformation already. It is already building more cars in China than in America. Such shift is bound to continue if GM survives bankrupcy. That should be of profound concern to all.
