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The White House still believes that General Motors can restructure without filing for bankruptcy. Of course the government wants this to happen. With the billions in tax dollar money on the line, I’m sure we all want them to achieve this.

I do not believe its going to happen. Number one they can’t sell any cars. They’re not making anything close to break even and hey are still burning through billions a month and running out of cash again.

Number two, the UAW still won’t budge to help them out. Keeping their workers at high wages and making it harder for a company to scrape money is better to them then having lower wages a company that will be able to employee union members for a long term

Then there is this perception that they make junk cars. While they certainly have had several bad models in the past, I don’t think that this is the case today, at least, not any worst than any other car manufacturer. Toyota has had problems in recent years. The other two of the big three has. It’s growing pains.  GM needs to work on getting rid of that perception. They certainly are trying with their ad campaign of how many cars get good MPG. Is it enough? I don’t think so. They need to get it so people realize you are not having to take your car to the shop every other week.

GM also needs to get more cheaper, stylish,  yet extremely reliable cars on the market. People want a car the feels luxurious but not at the high price. It’s the reason the Corvette was created. GM wanted a car that could go as fast and perform as good as the performance cars of the day. The Vette came out and people loved. Create a car with that mindset, and GM has a good chance of winning over the people.

However, with all the things GM needs to do, its going to take money and couple years. That is something GM does not have at this point in time. Can they claim bankruptcy and come back smelling like roses? Yes. Shed the debt, restructure and come back leaner, meaner, more aggressive. Is it going to hurt the tax payers? Yes, however, will it help in the long run? Yes, its what should have been done a long time ago.