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I’d say the current economy is merely the last straw. I don’t see Honda, Toyota, BMW or any other manufacturer close to filing chapter 11. They are all operating in the same economic situation. They don’t have the baggage that GM has but then who is responsible for that baggage in the first place (rhetorical question obviously).
What has brought GM and the rest of the big 3 to this point is years and years of mismanagement and short sightedness. There were a number of years when gas was cheap and profits huge but we all knew that wouldn’t last forever. Same thing with housing. You just knew that was going to pop and people were going to be in trouble. And here we are.
Allowing GM to continue as it is now without a chapter 11 restructuring is folly. We have an opportunity to remake the North American auto sector where the big 3 can be profitable and have a future. It’s time to hit the reset button and start over.
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