GM going bankrupt and Chrysler all but finished

Mark Zandi, Chief Economist of Moody's Economy.com says GM will file for Chapter 11 protection and that Chrysler will broken up and sold to other companies.

Basically, Ford will remain the sole American auto manufacturer...at least on the current scale. GM will come back as a 'shadow of itself'.

What is most interesting is Zandi's final point about the lesson in all of this: if you have a fundamental problem in your business, it's better to fix it sooner rather than later.

GM was running a massive debt before the recession. All that has happened is that those companies that were poorly managed and in poor financial health have now been exposed.

The question is this: will other companies in other industries learn anything from this?

GM Going Bankrupt

It looks like GM going bankrupt is inevitable.

Of course, it would have been better had they gone bankrupt prior to receiving US$ billions of taxpayer money.

This is simply the culmination of years of bad management and poor expense management. Bankruptcy is inevitable.

Next up: Chrysler...

http://www.financialpost.com/story.html?id=1491378