GM the American Motor Giants have Filed for Bankruptcy
General Motors Corp registered for insolvency on Monday. This has forced the 100-year-old automaker which was formerly a sign of American economic strength and dynamism into the wilderness of a doubtful age of government ownership. This is the third largest bankruptcy filing in the history of the US and biggest ever in US manufacturing.
This filing of bankruptcy in order to render an extra taxpayer fund of $30 billion is an enormous speculation for the Obama administration. This was done in order to bring in some restructuring for the automaker.
The immediate allegation is that GM will get smaller and thus reducing its market share to a lesser competitive structure. This will give an opportunity for rivals like Toyota, Honda, Nissan and Hyundai to take advantage of the situation and rise up and affix their stamp in the auto industry.