How General Motors Was Nearly on Brink of Collapse Report

Wednesday 03 February 2010, 00:00 AM by Payal Pathak

It is an open secret that General Motors was on the brink of collapse by the end of 2008. The giant automaker of America was saved by one of the biggest bailouts by the US government that not only saved the car manufacturer but also thousands of jobs and a large part of supporting businesses associated with the company. A new report reveals fresh information about General Motors’ liquidation bankruptcy status.

A memoir has been published by Business Plus, that states that the former Treasury Secretary Henry Paulson had refused any meetings with General Motors on several occasions as it was inconceivable for him that General Motors could be on the verge of collapse. Paulson recollects in the memoir that former GM Rick Wagoner had requested to meet him several times to ask aid from the government. Paulson seriously did not believe that the Troubled Asset Relief Program needed to be used to support the car manufacturers in the country. “He and his team may have sincerely believed this, but I knew better,” Paulson wrote. “I worked with companies like GM long enough to know that they did not die quickly.”

However, in the end the US Senate finally gave a green signal that General Motors be bailed out and was granted a loan of USD 17.4 billion. “It was politically impossible to rescue Citi and not help the automakers,” said House Speaker Nancy Pelosi.

These are few of the excerpts from the full memoir and the bailout saga that will be available by the end of this year.