Is General Motors Doomed? 5 Reasons Why, and How to Fix It
The calls for General Motors’ (NYSE:GM) death have been hitting the headlines for many years, if not decades. As America’s largest auto maker, GM has had a particularly rough time over the past six or seven years, which saw them declare bankruptcy in 2009. After recovering from the brink of death thanks to the controversial government bailout, GM dropped several brands, including Pontiac, in an effort to consolidate and focus on its profit centers. The loss of Pontiac, tens of thousands of employees, and 40 percent of its dealer network reduced GM to a second tier vehicle manufacturer in the minds of many consumers.
Though the company has been able to recover from the tumultuous period five years ago, GM still finds itself in a hostile environment. Focusing on its core brands — Chevrolet, Buick, GMC, and Cadillac — has helped GM get back to its feet, but the ground beneath it is still in danger of collapsing. A variety of factors, including new competition and recalls, have contributed to the latest slate of difficulties for the company. Things have not been getting any easier for GM, and the truth is, it hasn’t really done anything to to help itself out either.
The way things look, General Motors seems doomed. A new CEO, revamped vehicle lineup, and a worldwide market look to have reinvigorated the company for the time being, but is it an indication things have turned around for the long haul? Here are five big factors contributing the GM’s death, and what it can do to fix itself.