GM Puts the Government in the Driver's Seat
On July 10th, General Motors announced their exit from bankruptcy. The U.S. government now owns 60% of the company, and is already appointing new directors for the company. This announcement came with some pretty confident promises for a new company. Of course they need to proclaim change, otherwise people will not buy anything from them. They are now saying that they will head out on the road to talk to consumers and dealers in order to really understand the U.S. market. GM is really going to try to appeal to consumers again, but building confidence may not be easy. With the government committing $50 billion to the automakers, it may look as though they are on the right track, but will this build consumer confidence or caution. A survey on wsj.com has people favoring (by almost 70%) that GM will fail again. You have to wonder if consumers will buy into this “new” company or hold on to their money and skepticism