Investigating General Motors Company Bankruptcy Reason

Research GM’s bankruptcy reasons.
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Monday, June 21, 2021
General Motors Company (NYSE: GM) made history when it officially filed for chapter 11 bankruptcy on June 1, 2009.
Research GM’s bankruptcy reasons
GM's bankruptcy suit was a culmination of years of financial turmoil only worsened by the 2008 global recession. The reasons for the bankruptcy include runaway costs and excessive pension liabilities that had rocked the company for decades. The 2008 recession served as a trigger following decades of losses and revenue decline (Helper & Henderson, 2014). In 2008, GM reported a $38.7 billion loss and a 45% revenue decline. Operational costs became uncontrollable and so were pension liabilities. At that point, the company had no option but to officially file for bankruptcy. GM’s bankruptcy was also triggered by the World Health Organization’s (WHO) declaration of H1N1 influenza strain (swine flu) as a global pandemic (Duggan, 2018). At bankrup...