GM Bankruptcy- The top 10 facts.

Recent days, one prominent issue hearing in place of economic recession is GM's Bankruptcy. May be its one major issue many people on earth are bothering about. GM had been pride for US auto industry. Some one has quoted " What is good for GM is good for US and the same is good for Obama to be re-elected in 2012". One can understand how GM is strongly coupled with US Economy and Politics. Will GM exist in future? This is the question many have but with no answer. Whether it raises to its past glory or it would remain as past aura will be answered only by the Time. But the truth is that no one again can see a company like GM in any time. On the brink of its existence, there are so many facts one has to know about the great company. I found such 10 great facts about GM that will express how big and how great the company is and, of course, how pathetic its situation is!!!!!!!!!

Some Facts about GM & it's Bankruptcy:

1. Directly or Indirectly, about 250,000 employees are working for GM in USA itself. GM has its operations and selling its vehicles across 140 countries with many oversees brands like Germany's Opel and UK's Vauxhall. Many in few countries don't know which brand is under GM.
2. So far, GM has received $15.4 billion as a loan. Once it files for bankruptcy, it will receive $50 billions from US federal Govt.
3. A law professor at UCLA studied the possible case of GM's bankruptcy and estimated that the probable fees to pay to all lawyers and consultancies involved in case will be about $1.9 billion. This entire process will take 60-90 days.
4. The bankruptcy is expected to provide 72.5% stake to US federal government in return GM will get $50 billion from US tax payers. If Obama administration will be failed to put GM back to profits, entire money will be gone. Experts say this is highly risky business by US govt.


5. What can anyone think before buying a new Car? Definitely, anyone thinks not to buy GM car as the uncertainity for services by GM. So, people stop buying the cars owned by GM. This will help raising the sales volume for rest of the auto companies like Toyota & Honda are biggest winners at the GM's bankruptcy.
6. Share holders who bought shares recently will get advantage iff positive trend comes for GM's share as it will be taken by Obama's govt. But, older share holder were already at great losses. GM share value was $18 one year back, now , by today, it is about 88 cents.
7. GM, if bankrupted, there are plans to cut down its direct employees across US to 38,000 from around 70,000 employees. Companies, who are acting as only suppliers to GM, will be at great loss. If GM is going to be a company of losers, then US taxpayers will loose $70 billion, in which, $20 billion was already pumped in to GM and rest $50billion is heading into company pocket. It will definitely narrow the chances for Obama to be reelected.
8. It has been known fact that the every employee in GM has been getting 1 1/2 to 2 times the benefits than what an employee deserves to be got. GM is overpaying and more generous to its employees in giving medical benifits. This is where GM deserves restructuring. As former GM's CEO, Rick Wagoner, didn't do the proper restructuring plans in GM, Obama fired him and then present CEO Fritz Henderson is nominated.
9. About 1100 GM dealerships will be canceled out. And 14 plants will be closed soon across US. Till now, only 2 plants are identified to be shut down.
10. GM had been in Top -1 company in sales volume for 75 years during 1931-2007. The company stood after seeing many recessions effects including 1930's great depression.

Keep watching the space about more stories on GM.