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Obama facing tough financial questions regarding GM

We Brits are familiar to a bit of government company buy-outs. We are also relatively familiar – as tax payers – to being financially raped by failing companies. But I think as Brits, we can give some sympathy to the Yanks.

We Brits are familiar to a bit of government company buy-outs. We are also relatively familiar – as tax payers – to being financially raped by failing companies. But I think as Brits, we can give some sympathy to the Yanks. This is because the American’s have had it tough recently. The GM government bail-out cost the tax payer a lot of money indeed. And Obama and co are going to be asked some pretty tough question about the continued revival of the brand.

Despite this, GM was profitable in the first quarter of this year, and Chief Executive, Ed Whitacre stated that the next few quarters results will be “impressive”. Well let’s hope he’s right, because GM lost $88 billion from 2005 to 2009, and in any body’s book, that is a ridiculous amount.

Whitacre continued to say that GM is planning to enter its IPO filing. It seems Whitacre is convinced GM will pull out of the slump. He added: "If the market looks at GM as a company that is on the brink of failure, nobody really wants to get between them and that brink," said Rob Enderle, principal analyst at the Enderle Group in Santa Clara, California.

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