GM CEO claims General Motors is not heading for bankruptcy

GM CEO claims General Motors is not heading for bankruptcy

General Motors Chief Executive Richard Wagoner has claimed that the company is no way heading for bankruptcy as some of the market sources have started to say. World’s largest maker of automobiles GM is suffering huge losses in their operations as they are seeing falling sales. They have to start offering bulk discounts to spur up sales, which adds to their losses.

Wagoner mentioned in his letter to GM’s 325,000 employees on the company’s internal Web site: “There is absolutely no plan, strategy or intention for GM to file for bankruptcy.” the company has suffered losses of around USD 4 Billion this year alone. And their shares have lost about 46 percent of their value.

Japanese companies like Honda and Toyota are growing at an impressive rate with consumers showing a liking for reliable and fuel efficient cars. Making matters worse, GM is struggling with high health care and commodities costs. One of their biggest auto part suppliers Delphi has gone into bankruptcy, which further heightened the tension surrounding the company.

Market analysts believe that the problems with Delphi’s problems with their workers could potentially lead to $12 billion in liabilities for the supplier.