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General Motors on the verge of bankruptcy

It has been revealed that General Motors, the US car giant, is on the verge of bankruptcy as the fight over the company's European operations reaches fever pitch. The European Commission is central to the distribution of the various European arms of the business which have been put up for sale as part of an ongoing financial restructuring. However, with Germany the base for over 50% of GM Europe there are concerns that the German government is playing a central role in the eventual sale of the operations possibly to the detriment of other European partners.

General Motors has been on the verge of bankruptcy for some months now despite a financial package agreed with the US government. Just a short while ago the company agreed to apply for bankruptcy pending a reorganisation of the company's operations around the world. It now looks as though many governments around the world will be called upon to assist with rescue finance for those operations spun off from the US parent company.

As there are literally hundreds of thousands of jobs at risk across Europe the European Commission will have no choice but to become heavily involved in subsidising the operations in the short to medium term via loans guaranteed by various European governments.

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