GM status no reason to panic
Published 12:02 am Wednesday, June 3, 2009
The economy has hit a rough patch. We all know that. We’ve all felt it and we’ve all read about it.
Over the past several months, things began to feel like the were getting a little better. Then, Monday, news broke that General Motors – easily one of the most iconic industries in the United States for the past 100 years – had filed for bankruptcy.
For a moment, it felt like all that momentum, all that positive news, was going to be lost in mountains of Chapter 11 paperwork.
Then it happened: When one of the world’s largest automakers raised the white flag, Wall Street reacted with a gain of more than 200 points.
General Motors has been plagued for years by bad decisions. Granting large union contracts, and paying no attention to smaller, more fuel-efficient cars is no way to ensure your place in the market.
Monday’s announcement was horrible news for several thousand employees, but in all, jobs in Demopolis will be preserved and maintenance contracts honored.
Sometimes these things must happen for the economy to heal itself.
Make no mistake, Monday’s announcement was tragic news on many levels, but it could have been worse. Thus far, GM’s presence in Demopolis has been spared, and for that, we are thankful.