Due to global recession period the 100 yrs old famous motor company faces Bankrupcy. General Motors faces financial crisis and though they have decreased their staff to great level they are not able to recover the loss and is on the verge of bankrupcy.
General Motors Company is in loss since last 10 yrs and was loosing it's networth day by day.It also also lost it's status of topmost motor company in the world on it's 100th year which is now enjoyed by toyota of Japan.
Company has total debt of 27 billion dollars towards it's investors and it's share value has also gone down $1 and lastly it was reported as 0.87 cents/share when bankrupcy of GM was confirmed by sources.
American government is relieving packages for motor business unit ,but will not be able to help general motors as it's debts are far more than the packages and so with these package general motors will compulsarily file bankrupcy so that it's stake could be easily handed over to other company who so ever takes over to this company and it's investors money could be saved.
General Motors has been given deadline of 1st june either to restructure or to declare bankrupcy by US government.
The German division of opel can be take over by the candian auto parts company with the help of german government of germany .The proposed company would be Magna International who will take over german division of opel in germany and stakes of share will be in this manner.Magna will hold 20% ,Sherbank( Finance provider for this project) will get 35%,35% will be retained by GM,and remianing 10% will go to the employees of GM.If this calculation works out then GM's bankrupcy can be stopped.
Let's wait and see for how much time General Motors is able to strive and sustain it's prestige .
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