The Repercussions Of GM Bankruptcy
“No matter how cleverly the US government tries to calm the situation, the state of insolvency of the biggest car making company is bound to have some repercussions across the country.”
The General Motors has finally declared itself bankrupt. It was all a part of the restructuring scheme that was the brainchild of the US government. The US government has also somehow been able to convince various creditors as regards this restructuring. After all, it does not want to be involved in long legal battles.No matter how cleverly the US government tries to calm the situation, the state of insolvency of the biggest car making company is bound to have some repercussions across the country.
One effect is that some of the cars of this great company may now be bargained for much less. In fact, many showrooms have done so. It was all a part of a big plan and they were given incentives for the same. They were also to sale their products so they cut their prices to a large extent.
Moreover, other car companies now want to woo as many customers as possible. So, they are attracting customers by offering various attractive deals to them.
Even those companies, which had been in dire straits before or had gone totally bankrupt, have found an opportunity to regain their reputation and glory. It’s up to the customers whether they are able to trust such companies or not.
The GM would now try to get rid of certain brands and would keep famous brands such as Chevrolet intact. The customers also feel that now they are getting the best deals and so are not that persistent in their bargains.
Customers also feel happy, as the government has announced its decision of backstopping new car warranties on GM. This has been done because the company is reorganizing itself with the help of government aid.
The customers also need not worry about the non-availability of spare parts because they would be as readily available as before. So, the customers be rest assured about their existing cars.
There may be a small effect in the rural areas, as the people there may have to wait longer for their car repair. It is because in such a scenario the trimming of the dealer network is quite plausible.
Author - DeeKay
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