Genetically modified organisms and their applications

¶ … G.M. goes, so goes the nation:' The new, leaner, more efficient General Motors

As a result of an agreement that resulted in its accruing over $19.4 billion in federal loans and another $30 billion in loans by the end of 2009, General Motors chairman Rick Wagoner agreed to step down from his leadership position and the company entered Chapter 11 bankruptcy, only to emerge quickly as a newly restructured organization. "G.M. has reduced its debt by more than $40 billion, and shed factories, workers, brands and scores of dealerships across the country. The best assets, including the Chevrolet and Cadillac brands, were formally transferred to the 'new' G.M." (Vlasic, New GM, 2009). G.M .has abandoned its Saturn division, terminated its Pontiac brand and sold both its Saab and Hummer units. "The new core of the company will consist of four brands -- Chevrolet, Cadillac, G.M.C and Buick -- and international operations primarily in Asia and South America. A pending sale of G.M.'s European operations will leave the company with, at most, a minority stake in that business" (Vlasic 2009). Its leadership will also forego large bonuses and benefits, (including the infamous corporate jet its management team took when it first asked for aid from Congress), six-figure incomes, and 400 of the 1,300 executive positions at the company will be eliminated (Vlasic, Vow to slim, 2009).

This is to leave G.M. with a leaner, more competitive structure, but will also rob it of its once-dominant market position as the world's largest automaker: G.M.'s U.S. market share, in its reconfigured form, will fall to about 17% next year, and 16% by 2011 (Vlasic, New GM, 2009). However, by retaining a foothold in Asia, G.M. can potentially capitalize upon new demand for vehicles in China, one of the world's most potentially lucrative new markets. Additionally, the Chevy Volt, an electric car that is advertised, according to its website, as able to drive "40 miles a day without a drop of gas" will hopefully lure environmentally-conscious consumers back to the American car company, who might otherwise have purchased a Toyota Prius.

G.M. still faces considerable challenges, as do all of the major automotive companies based in America. Even their relatively healthier foreign competitors are worried: Toyota recently had its first annual net loss. Both American and international consumers, fearing for their jobs as the unemployment rate continues to escalate, are unwilling to make major purchases such as new cars, particularly from a company that is perceived as making 'gas guzzling' vehicles like G.M. Credit also remains difficult to obtain from banks, and few consumers can afford to buy a new car with cash. Even consumers with secure jobs are concerned about the price of gas, and may shy away from buying from a company that has come to symbolize wretched excess.