The General Motor BailoutThe General Motor Bailout

General MotorGeneral Motor Establish 1931 Produce in 37 CountriesBands Chevrolet, Buick, GMC, Cadillac,

Holden, Opel, Vauxhall, Wuling, Baojun, Jie Fang, UzDaewoo

Sales Distribution 137 Countries Joint Venture China (Shanghai GM,

FAW-GM and SAIC-GM-Wuling), Russia (GM-AvtoVAZ), Uzbekistan (GM Uzbekistan), India (General Motors India), Egypt (General Motors Egypt), Pakistan(Ghandhara Industries), and South Africa(Isuzu Truck South Africa)

Establish 1931 Produce in 37 CountriesBands Chevrolet, Buick, GMC, Cadillac,

Holden, Opel, Vauxhall, Wuling, Baojun, Jie Fang, UzDaewoo

Sales Distribution 137 Countries Joint Venture China (Shanghai GM,

FAW-GM and SAIC-GM-Wuling), Russia (GM-AvtoVAZ), Uzbekistan (GM Uzbekistan), India (General Motors India), Egypt (General Motors Egypt), Pakistan(Ghandhara Industries), and South Africa(Isuzu Truck South Africa)

The FactThe FactGM did not anticipate the credit crunch in 2006

Lose US$. 80 billion in four years2005 US$. 10 Bio2006 US$. 1 Bio2007 US$. 38.7 Bio2008 US$. 30.3 Bio

Account Receivable US$. 8.34 BioNet Asset US$. 40.11 BioCurrent liability US$. 75.61 BioLong Term Debt US$. 29.02 BioLabor Cost US$. 70/hour (30 wages 40

Benefit)

GM did not anticipate the credit crunch in 2006

Lose US$. 80 billion in four years2005 US$. 10 Bio2006 US$. 1 Bio2007 US$. 38.7 Bio2008 US$. 30.3 Bio

Account Receivable US$. 8.34 BioNet Asset US$. 40.11 BioCurrent liability US$. 75.61 BioLong Term Debt US$. 29.02 BioLabor Cost US$. 70/hour (30 wages 40

Benefit)

SolutionSolution GM try to Bailout government US

Treasury Department (TARP) Government provide GM US$. 13.4 Bio

Installment :December 31, 2008 US$. 4

BioJanuary 16, 2009 US$. 5.4

BioFebruary 17, 2009 US$. 4

Bio GM did not reach the debt reduction

target from government GM need Additional US$. 22.5 from

government to continue operating 2011

GM try to Bailout government US Treasury Department (TARP)

Government provide GM US$. 13.4 BioInstallment :

December 31, 2008 US$. 4 Bio

January 16, 2009 US$. 5.4 Bio

February 17, 2009 US$. 4 Bio

GM did not reach the debt reduction target from government

GM need Additional US$. 22.5 from government to continue operating 2011

Final Plan to Improve the CompanyFinal Plan to Improve the Company

Cut 37,000 Blue-collar Jobs Cut 10,000 White-collar Jobs Close 14 plants over 3 years Eliminate 4 of its eight car brands Cut manager salaries by 10 % & all other

salaries by 3-7 %

Cut 37,000 Blue-collar Jobs Cut 10,000 White-collar Jobs Close 14 plants over 3 years Eliminate 4 of its eight car brands Cut manager salaries by 10 % & all other

salaries by 3-7 %

GM Bailout The Government of Canada US$. 10 Bio The USA Government Total US$. 50 Bio

GM Bailout The Government of Canada US$. 10 Bio The USA Government Total US$. 50 Bio

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