General Motors Goes Bankrupt

America’s biggest car maker goes bust, paving the way for a “new GM” to be formed under majority government control.

In the largest such move in US industrial history, the firm entered Chapter 11 bankruptcy, allowing it to restructure without going into liquidation. The US government is likely to spend billions fixing the company, owning up to a 60% stake. Failure to do so would result in hundred of thousands of US citizens loosing their jobs, which would be a unpopular move for the President. 

Hopefully they will use control of the new company to build and develop green cars. They have a great opportunity now to lead the world in manufacturing the next generation of cars. Unfortunately, America tends to suck at making cars, constantly falling behind their Eastern and European rivals. But Hopefully with the Obama administration behind the wheel, they can get the right people involved to make the right things happen.

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