GM's Bankruptcy Shocked Automotive Industry in 2009
In 2010, it will be a good time for us to evaluate what went wrong for the auto sector in 2009. And when we talk about the biggest disappointment of 2009, then we need to be careful in doing so as the effect is one of the biggest names of the auto industry.
I will consider that automotive developments in 2009 did accelerate in the 2nd half of the year. However, the year will be known for one of the worst disappointments in the automotive industry.
2009 ended on a bright note. However, when we started the last year in Recession when all the automotive players were guarded in their reactions and policies to stuff going all around them. Speculation was all rife and there was a talk of some of the big players falling by the wayside. And, sadly, it all became true with the failure of General Motors.
A long time prophecy of auto-analysts was proven right when GM filed for Bankruptcy protection under Chapter 11. There was a talk of how this will cause catastrophe in the automotive industry and how more and more companies will follow suit. Nothing of that sort happened and barring the GM's shock other players ended the year on a happier note.
With President Obama at the helm, and US Treasury becoming the largest shareholder of the company, a tighter control by the Treasury over GM was palpable. And though Fritz Henderson led the company through a 6 month tumultuous period, his eventual sacking and replacement by Ed Whitacre in December again signalled that all is still not well with GM.
Ed Whitacre is possible in the hottest seat in the automotive industry. Yes, he is known to be proactive and straight-forward. And yes, he enjoys the confidence of the Treasury. Will all this be enough to turn a new leaf for the General Motors is something that we cannot comment right now. However, the world is watching if Whitacre is the man who will resurrect the ailing General Motors. Let us hope for good old times to return at GM.
I will consider that automotive developments in 2009 did accelerate in the 2nd half of the year. However, the year will be known for one of the worst disappointments in the automotive industry.
2009 ended on a bright note. However, when we started the last year in Recession when all the automotive players were guarded in their reactions and policies to stuff going all around them. Speculation was all rife and there was a talk of some of the big players falling by the wayside. And, sadly, it all became true with the failure of General Motors.
A long time prophecy of auto-analysts was proven right when GM filed for Bankruptcy protection under Chapter 11. There was a talk of how this will cause catastrophe in the automotive industry and how more and more companies will follow suit. Nothing of that sort happened and barring the GM's shock other players ended the year on a happier note.
With President Obama at the helm, and US Treasury becoming the largest shareholder of the company, a tighter control by the Treasury over GM was palpable. And though Fritz Henderson led the company through a 6 month tumultuous period, his eventual sacking and replacement by Ed Whitacre in December again signalled that all is still not well with GM.
Ed Whitacre is possible in the hottest seat in the automotive industry. Yes, he is known to be proactive and straight-forward. And yes, he enjoys the confidence of the Treasury. Will all this be enough to turn a new leaf for the General Motors is something that we cannot comment right now. However, the world is watching if Whitacre is the man who will resurrect the ailing General Motors. Let us hope for good old times to return at GM.
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