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Talks About GM Signal Repeat of History

Most people had expected that General Motors would have a clean sweep over the auto market and would come out on top once again, despite having declared bankruptcy and have been mainly government owned. With their release of public stock offering, most people thought that there would be no turning back for the company. However, now, people are not so sure if the company is going to have that fairy tale ending or not. 

The main reason for these thoughts deals with the new CEO Daniel Akerson. People are worried that his inexperience with the auto world and his heavy background in telecommunications is not helping the brand one bit. Akerson is all about making their vehicles cheaper by offering deep incentives to the consumers which has the cars selling right now, but in the future could lead to previous problems that the company has had. 

Many people are afraid that if Akerson is able to continue like this that the GM brand could end up worse for wear. Then, add on the fact that chief financial officer, Chris Liddel, is leaving the company after having barely a year with the company, it has many people speaking. And those things that people are talking about is not all nice. Most are worried that GM is going to repeat history having to be bailed out by the government because they are simply underselling their cars. The goal is to have cheaper cars that are made with materials that are sturdy, safe and more cost efficient. However, it does not seem that GM is taking these aspects into mind. They seem to be worried about making the sale in order to show that they are selling more cars than other brands. However, the end of the year when their earnings and payments come out, they are going to be the ones taking the full heat for a decision that could possibly blow up in their faces.