The 100-year-old iconic car major which has been one of the most visible symbols of American capitalism and economic might enters into uncharted waters of nationalisation or government ownership from today.
This will be the third-largest bankruptcy filing in American history and the largest-ever US bankruptcy in the manufacturing arena.
It was in the offing, given the decline the company has seen for decades, as well as its inability to renegotiate terms with its union.
While the timing of this event may have been caused by the recent recession and credit squeeze, the company had this coming for long for two reasons- its poor response to the entry of foreign cars into the American market as well as its skyrocketing labor costs, mainly because of poor bargaining power with its unions.
Ironical given that competition and freedom to hire and fire are two tenets of capitalist economies.
There is a lot of optimism around this move; experts feel that the Chapter 11 filing will give the company a lot more freedom to restructure and become competitive once more.
Let us keep fingers crossed!