The Detroit-based automotive stalwart has lost $81bn over four years. The Times reports it’s the “largest industrial bankruptcy in American history and the fourth largest overall”.
BDO Stoy Hayward automotive partner Sid Hopper says GM’s failure is a “hugely significant event” that will affect many business sectors.
He says: “We may well see serious repercussions for Vauxhall factories and component suppliers in the UK. Production volumes have already fallen with the resulting threat of temporary factory shutdowns and even permanent closures. By 2010 the industry is forecast to produce up to 25 per cent fewer cars in Europe than they did in 2008.
“The bigger issue at stake here is that GM’s position is not unique. All car manufacturers are going to have to make difficult decisions in the next few months. They will need to address the over-capacity in the industry and the changes in vehicle purchasing habits.”
On Twitter, wecandobiz suggests that the likely UK impact is “Vauxhall jobs will be lost to Germany, as the federal and local govts are supporting the Magna bid”.