Outline: ABSTRACT 1. Introduction 1.1. Background Information 1.2. Purpose of the Report 1.3. Statement of the Problem 2. Methodology 3. Findings 3.1. Bankruptcy in the Auto Industry 3.1.1. Arguments in Favor of Chapter 11 Bankruptcy 3.1.2. Arguments Against Chapter 11 Bankruptcy 3.1.3. Arguments Against Government Intervention 3.2. Federal Government Bailout Process and Timeline 3.2.1. Congressional Bailout Bill 3.2.2. Senate Rejects Bailout 3.2
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Abstract This research looks at the General Motors Company and what led to company failure and filing of bankruptcy in 2009. The American automotive industry was poorly managed for years and was almost eliminated when the economy crashed in 2008. Without the help of the U.S. government‚ General Motors and Chrysler would not have been able to survive. How did GM‚ as the number one auto manufacturer and seller‚ go from being at the top to almost ceasing to exist? This kind of financial mess usually
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Should Obama Bail Out the Auto Industry? Context and Situations By November 2008‚ Chrysler’s sales had shrunk 25%. GM posted losses of $18 billion‚ and Ford lost $11.5 billion. Despite Ford’s elimination of 1/3 of its workforce‚ GM’s elimination of 30‚000 jobs‚ and Chrysler’s cutting of 13‚000 employees‚ the Big Three were on the brink of bankruptcy. All three testified before both houses of congress asking for loans to avoid default. The Big Three stated their demise would trigger 3 million
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Company‚ known as GM‚ was founded in 1908 in Flint‚ Michigan by William C. Durant and Charles Stewart Mott. The present chairman and CEO is Daniel Akerson. Akerson joined GM ’s board in 2009 as the company went through a bankruptcy reorganization. He became CEO Sept. 1‚ 2010‚ and led GM ’s 2010 return to the stock market — at the time the largest initial public offering in U.S. history (Detroit Free Press‚ 2013). The headquarters for GM is presently located in Detroit‚ Michigan. GM specializes in
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profitability? Explain and provide a rationale for the prospects of continuing this rise. The first thing GM did to help them return to profitability was the revamping of product development. GM had too much focus on the engineering process of development. This led to the difficulty of getting a bold design off the drawing board and through the lengthy development process. Under the lead of CTO John Lauckner‚ GM came up with a streamlined process that led to faster decision making. In addition‚ meetings
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IDENTIFY WHAT YOU BELIEVE TO BE THE PAST DEFININF ELEMENTS OF THE GM CULTURE. One former GM employee said the company’s management’ CULTURE needs an almost immediate overhaul if GM is to start producing the vehicles it needs to revive sales and return to profitability. This statement indicates there are some things that are fundamentally wrong with GM. To start with‚ GM faced the consequences for what GOP warned every one about for the last 2 years in 2009 that how our auto industry consumes more
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commercial reach‚ that bankruptcy--"going into chapter‚" as restructuring folks say--is ominous almost beyond contemplation. And yet the evidence points‚ with increasing certitude‚ to bankruptcy. Rick Wagoner‚ GM’s 53-year-old chairman and CEO‚ may say‚ as he did in a January interview with FORTUNE in his aerie of an office high above the Detroit River‚ "I know that things will turn around." But he cannot know that. He may not‚ deep down‚ even believe it himself. Bankruptcy isn’t going to occur next
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goes out of business after 84 years Source: http://www.manufacturing.net/news/2010/11/pontiac-goes-out-of-business-after-84-years This article discusses a little of the history of GM and why it failed. Pontiac started in the Michigan city of Pontiac in the 1920s. It almost died three decades later but was revived by GM when the company linked the car to drag racing and it gained the muscle image. The ready to race GTO‚ with a powerful V8 engine‚ helped Pontiac thrive in the 1960s. In 1968‚ Pontiac’s
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GM Ignition Case Ethical Evaluation Joe Pirozzoli General Studies Milwaukee School of Engineering Author Note Joe Pirozzoli‚ General Studies‚ Milwaukee School of Engineering Prepared for HU 432 Ethics‚ Professor Paul Hudec and submitted 4/9/2015. Correspondence regarding this article should be directed to: E-mail: pirozzolij@msoe.edu Abstract The contents of this paper will analyze the GM ignition case using several concepts taught in ethics. This will include a background of the issue
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auto industry in Detroit should be handled. He expressed that Detroit should not be bailed out by the federal government because that would allow the practices that brought GM and Chrysler to their knees to continue‚ instead let the GM and Chrysler file for bankruptcy‚ restructure and emerge better company’s. By filing for bankruptcy his idea was that the industry would shed expensive labor agreements‚ reduce retiree benefits and allow Detroit to be on par with foreign brands in terms of pay and benefits
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