Jason Sidhu's Blog

In 2009 GM received bailouts from the US government that included 50 billion dollars of taxpayer money. Fortunately taxpayers have received about 24 billion dollars of that money back. Unfortunately the rest of the money that GM owes is currently invested in company shares which are taking an enormous hit. Since GM’s initial public offering at $33 the share has dived to $25. It is estimated that the federal government would need $53 a share for taxpayers to break even.

In that miraculous business plan that GM created for the US government they explicitly “promised to fast-track development of energy-efficient vehicles“. From what GM is offering on their showroom floor today, they definitely haven’t fulfilled that promise. On the GM website they speak of “the most fuel-efficient vehicles in our history on the road today“, they go on to speak of a hybrid Silverado that delivers a dismal 23MPG highway. If that isn’t bad enough they mention their Buick LaCrosse which delivers a mixed 25/36MPG rating.

When the LaCrosse has competitors like the Volkswagen Passat (30/40MPG), it seems like a  weak offering from GM. Some go as far as to state that General Motors is Headed For Bankruptcy–Again.

With relentless competition, can GM transform and compete?