Can you still remember last year, when the america sub-prime mortgage triggers the economic tsunami, everything seems falling apart in US? One of the most serious industry is automobile. And of course, as the largest car company in US, General Motors suffers a lot. They are the collateral damage from the economic downturn. Why? Simple answer, GM is lacking behind way before the actual downturn. As the biggest automobile firm, GM managements fails to adapt themselves in the new trend. Critics are complaining that GM’s car design is already hardly keep up with the demand of public. As we all know, innovations and new products made by R&D department is crucial for a firm to grow in the future. However, GM’s management is assuming that their loyal customers will not give up and switch their choices of cars. But they are wrong. Typically speaking, branding does provide a firm with loyal customers. They are less likely to be price sensitive and does not change their preferences. Overconfident causes GM to fail in a progressive way. Their design is so similar in their different product lines such as GMC and Chevrolet. And what is more, they fail to being “green”. Environment awareness is raising for the consumers. They value this as an important perk for choosing a car. What make it worse, GM products such as Hummers consumes gas so heavily. GM is losing their market shares to Japanese cars such as Toyota and Honda. Due to fact that they are making hybrid cars and using less fuel. And GM goes bankrupt, as many people expected. But that’s not the end of story. After almost like a year, Financial report states that GM is now recovering and eating up foreign market shares such as Asia and Europe. One reason is that GM is rebuilding their reputations and promoting their new revolution. And another reason is that they are now taking new steps, for investing electric cars, which is the Volt. GM is the first few car companies that initiates the electric car. So as the pioneer, GM is now gaining back the market shares and cultivating the loyal customers in the future. So we’ll see, how the giant gets back to the table!