General Motors Headed for Bankruptcy
General Motors lost more money than its total revenue for the year--that is, its costs were more than twice its revenue. That's completely unsustainable. Even if the government pays it 30b per year, it will still be losing money. If you don't understand, take this example:
Suppose I have a store that sells widgets that cost me 61 cents to buy, and I sold a million of them for 30 cents apiece last year. That makes my revenue 300,000 dollars, but my cost 610,000 dollars, making my loss (negative profit) 310,000 dollars, which is slightly greater than my revenue. Yes, that means my net profit margin is negative 103%. (That's bad, by the way)
GM fails. It needs a complete restructuring. It needs better management. And most importantly, it needs free workers--not brutal Unionized workers
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I happen to drive an
I happen to drive an Oldsmobile (keyword "Old"). I'm pretty sure that's GM. It's nice to see that the efforts being made to save GM are going as planned.
I say they deserve to fail after that. You have to be immensely stupid to lose that much money. I'm not a pro-union guy to begin with, but even if I were, I'd probably still recommend they drop the union. That being among the million other things wrong with the company.
And just to further rant, my car sucks.