Why General Motors went bankrupt

General Motors Corp filed for bankruptcy on Monday, forcing the 100-year-old
iconic car major which has been one of the most visible symbols of American
capitalism and economic might into uncharted waters of nationalisation or
government ownership.

This is the third-largest bankruptcy filing in American history and the
largest-ever US bankruptcy in the manufacturing arena.

US Chapter 11 bankruptcy protection gives GM time to restructure its
finances while being protected from its creditors.

The bankruptcy is likely to change GM drastically and 20,000 workers are
likely to lose their jobs. GM has 92,000 employees in the United States and
supports 500,000 retirees under the contract filed with the workers' union.

So why has the world's best known car company gone bankrupt? What led to the
fall of the giant and how will the developments unfolding in the US affect
GM India? Read on. . .

*Text: Rediff Business Desk*

*Image:* The General Motors building is seen beside the Detroit River in
Detroit, Michigan.
*Photographs:*Molly Riley/Reuters
http://business.rediff.com/slide-show/2009/jun/01/slide-show-1-why-general-motors-went-bankrupt.htm

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