0601 comments for today's business

Today's Business discussed the General Motors (GM). The financial situation of GM has been reported for a long while by newspapers. In the beginning, GM wanted the US government to bailout itself, but the US government want to do it only under condition of GM reconstructed. After a few months, GM faced bankruptcy at June 1st, but GM also got the money from government to reconstruct after its bankruptcy. In the future, GM will make itself smaller than now.

This bankruptcy of GM will reshuffle the motor industries of the world. Some motor companies will buy the subsidiaries from those motor companies which have financial problems. Moreover, the manufactories of motor parts are also impacted by GM's bankruptcy. When GM starts to reconstruct, it will close some factories and downsize, and it means the sales will slump. The demand of car parts will decrease, too. Then it probably will bring another bankruptcy of manufactories of motor parts.