Jim Cramer Blog

GM is in trouble. Delphi has exclaimed that its workers need a change in order to continue its business with GM and has said it is the only way for them to emerge from bankruptcy. In addition, the ability of GM to use a different supplier is not feasible because they design and begin to produce materials for their cars years in advance and the time and effort this would take to switch would prove to be disastrous. But, that's is not the end of GM's troubles, three other companies that they rely on are also in bankruptcy: Colins & Aikman Corp., Dana Corp., and Tower Automotive. GM is continuing to loose its market share to the Japanese car manufacturers in almost every category of vehicle. This is a company that is on its way out. The only solution to this problem is to strip the company from its roots and start over. I guess that's why a certain someone came in and bought a significant portion of the company. Unfortunately, GM's assets are worth more than GM itself.