La Voz

Issue date: 6/22/09 Section: Opinion

Media Credit: Galen Oback

As their reinvented slogan states, General Motors' bankruptcy filing "isn't about going out of business - this is about getting down to business."

I guess the current foundation of General Motors does not coincide with its previous slogan and its advertisements' theme song, "Like a Rock." Unfortunately that rock has been turned into pebbles, if not dust. Yet, I am drawn to their innovative motto: "We're not witnessing the end of the American car, we're witnessing the rebirth of the American car."

You can tell from their new commercial advertisement that they had molded themselves into an environmentally friendly, yet economic investment, geared toward our current complicated state. There are plants sprouting out of the ground, people playing football, a cheering crowd, sunrise over a city skyline and lights illuminating off a glistening factory.

The announcement of the company's bankruptcy filing, may put fear into the minds of consumers. One can only come to this conclusion because he or she would think that customers would not want to make a major investment in a product made by a company with a sullied reputation and a doubtful future.

Fortunately, so far there is no evidence showing that Chrysler sales have suffered since President Barack Obama announced its bankruptcy on April 30. And despite the company's tainted image, Chrysler appears on track to emerge from bankruptcy court within the 60-day timeframe announced at the time of the filing.

GM is expected to go into a government-managed "prepackaged" bankruptcy, as part of their reinvention. This is when the government provides so-called "debtor-in-possession financing" to let the automaker continue its daily operations while the bankruptcy court splits operations between a "good" and "bad" GM.

The idea is that the "good" GM (Chevy and Cadillac) would emerge from bankruptcy within a few months. In return, "bad" GM, such as Pontiac and Saturn, would be sold or liquidated in a more lengthy restructuring process. Hopefully this will cause GM's rebirth to become "like a rock" again.

As foreign car markets flourish and American competitors fight for scraps. GM, Ford and Chrysler need to plan for a competitive car market. Maybe the only way to stop the downfall is to put restrictions on foreign-made vehicles and allow our industry to get to its feet.

People have more faith in foreign cars like Honda, Toyota and Nissan than they might ever have in American car companies. Reliability, gas mileage and price have all been factors in the dominance of foreign car industries. If GM, Ford and Chrysler can't beat them, they may want to join them, if copying their success is the only way to go. The American car industry needs to humble itself before the entire industry ceases to exist.

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