If GM is to emerge from bankruptcy and have a viable future at lot will need to change--can the government as majority owner make it all happen? We shall see.
So much of the focus has been on getting GM's costs and debt under control. Reducing the number of brands and the number of dealers are all essential steps but the ultimate test will be whether the company can design and deliver exciting, well built cars that customers want to buy at a price they want to pay. Even if they do this, they will still need to regain customer trust that years of missteps has eroded.
The automotive industry is changing fast and it now seems clear that the demise of traditional petrol-engined cars is a "when" not "if" question. Will GM ever be able to afford the investments needed to retool a hundred old business and manufacturing model? Cheap government loans will help but it is going to be awfully expensive. A more interesting question is how foreign buyers will perceive a company subsidized by the U.S. government; after all U.S. companies have complained about foreign governments subsidizing companies who compete with American companies for years - think Airbus, British Airways, Air France. Now the shoe is most assuredly on the other foot.
The rise of Government Motors from the ashes of General Motors marks a sad day for the American economic miracle.
