My article got published !!! Am sooo happy !
You can read it at http://theviewspaper.net/i-p-l-t-20-is-here-to-stay/
Pssst...and also my second one !!
Read it at http://theviewspaper.net/the-gift-of-the-nile/
And my third one toooo !!
Monday, June 22, 2009
Tuesday, June 9, 2009
Coffee=Bankcrupcy!
The Company which ‘kept rolling’ through the two world wars, the great depression and the 9/11 attacks, finally met its match this Monday.
General Motors was founded in 1908, and manufactures cars and trucks across 34 countries.
Today, America’s largest Car manufacturer, GM, filed for bankruptcy protection under chapter 11 in the New York Court. This is the fourth-largest collapse in American corporate history, preceded by Lehman Brothers, Washington Mutual and WorldCom.
It is the largest crash yet for a company of the Industrial sector. It has $172.8bn in debt and about $82bn in assets. The giant is being provided assistance by the American treasury and Canada.
The New York stock exchange announced that the stocks of GM would be taken off the charts before trading began this morning. GM saw it’s lowest in 70years, when the value of its stock hit 27cents.
This surely does betray the ‘balancing on the borderline’ situation that GM is facing. It is indeed unbelievable that a company of its magnitude and importance could face such a situation. But the past one year of other bankruptcies, including, the most recent sale of Chrysler to the Italian Fiat, shows that nothing is impossible anymore.
GM believes that, like a Phoenix rising from its ashes, it too, will be able to boomerang back into the market with lesser debts and operating costs, which will help it become stronger than it is now. It is expected that the whole process would be completed within 60-90 days.
The American government will now hold 60%, Canadian government will hold 12.5%, and United Auto Workers will hold 17.5% and the bond holders will hold 10% stake of the resurrected GM.
It is expected to shut down 14 plants and retool one, to build small cars. The brands will be limited to Chevrolet, Buick, Cadillac and GMC.
GM assured that its Indian arm would continue work as usual and the Indian markets would not be affected. They say that the GM India dealers, warranty and customer services will remain unaffected.
This crash has been on its way for a long time, it’s just that the beans are spilled now. It is impossible that a firm run into bankruptcy overnight. Bankruptcy is like a well brewed coffee, it cannot happen in a jiffy.
Even the beginning with Lehman brothers, and others, the phenomenon had been gnawing at their insides for a long time, probably as early as late 2006. It is more or less the same with GM, just that President Obama’s timely ‘push’ into bankruptcy, had made the impact less harsh.
Now, everything depends more or less on the response of the general public to GM, whatever pieces have already been manufactured is being offered as buyouts. The question of how the public will react to this crash and consequently to GM, will pen down its destiny.
The general public is already wary of its investments; the fall of GM may just add to their fears and dampen spirits.
Is the sun rising or setting for the American automobile industry?
General Motors was founded in 1908, and manufactures cars and trucks across 34 countries.
Today, America’s largest Car manufacturer, GM, filed for bankruptcy protection under chapter 11 in the New York Court. This is the fourth-largest collapse in American corporate history, preceded by Lehman Brothers, Washington Mutual and WorldCom.
It is the largest crash yet for a company of the Industrial sector. It has $172.8bn in debt and about $82bn in assets. The giant is being provided assistance by the American treasury and Canada.
The New York stock exchange announced that the stocks of GM would be taken off the charts before trading began this morning. GM saw it’s lowest in 70years, when the value of its stock hit 27cents.
This surely does betray the ‘balancing on the borderline’ situation that GM is facing. It is indeed unbelievable that a company of its magnitude and importance could face such a situation. But the past one year of other bankruptcies, including, the most recent sale of Chrysler to the Italian Fiat, shows that nothing is impossible anymore.
GM believes that, like a Phoenix rising from its ashes, it too, will be able to boomerang back into the market with lesser debts and operating costs, which will help it become stronger than it is now. It is expected that the whole process would be completed within 60-90 days.
The American government will now hold 60%, Canadian government will hold 12.5%, and United Auto Workers will hold 17.5% and the bond holders will hold 10% stake of the resurrected GM.
It is expected to shut down 14 plants and retool one, to build small cars. The brands will be limited to Chevrolet, Buick, Cadillac and GMC.
GM assured that its Indian arm would continue work as usual and the Indian markets would not be affected. They say that the GM India dealers, warranty and customer services will remain unaffected.
This crash has been on its way for a long time, it’s just that the beans are spilled now. It is impossible that a firm run into bankruptcy overnight. Bankruptcy is like a well brewed coffee, it cannot happen in a jiffy.
Even the beginning with Lehman brothers, and others, the phenomenon had been gnawing at their insides for a long time, probably as early as late 2006. It is more or less the same with GM, just that President Obama’s timely ‘push’ into bankruptcy, had made the impact less harsh.
Now, everything depends more or less on the response of the general public to GM, whatever pieces have already been manufactured is being offered as buyouts. The question of how the public will react to this crash and consequently to GM, will pen down its destiny.
The general public is already wary of its investments; the fall of GM may just add to their fears and dampen spirits.
Is the sun rising or setting for the American automobile industry?
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