General Motors: Macroeconomic Environment and The Financial Crises (250 words)

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Find evidence on how changes in the macroeconomic environment and the financial crises in 2007 and 2008 impacted General Motors’ operations. Discuss the role of these factors versus the consumer demand issues described in the Lee Hawkins news article.

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“The Old GM” was plagued by consumer demand issues as outlined in “Lost in Transmission – Behind GM’s Slide: Bosses Misjudged New Urban Tastes; Local Dealers, Managers Tried Alerting Staid Bureaucracy; Marketing Goes Off Course; Trying for a Revival in Miami” by Lee Hawkins (March 2006). Page 29 of “The New” General Motor’s 2010 annual report*, provides a background explaining several additional factors that led to the to the fourth largest US bankruptcy in history, occurring on June 8, 2009 accompanied by a record government bailout (announced in September of 2008). Many of the factors echoed the problems outlined in the Hawkins article....
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