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General Motors: How a Giant Fell

After decades of dominance, automaker blamed others for downfall

By Jason Farago,  Newser Staff

Posted Jun 1, 2009 5:13 AM CDT

(Newser) – General Motors dominated the auto industry for much of the 20th century, and its downfall took place over decades. Many of the attributes GM once saw as strengths, from its rigid structure to its diverse range of vehicles, became liabilities as Japanese competitors sucked away even its most loyal customers, reports the New York Times. Yet its bankruptcy filing would have been unthinkable even a few years ago, as GM insisted it was too big to fail.

In recent years GM blamed outside forces for its decline: unions, regulators, the Japanese government, and a supposedly hostile news media. Even last week one exec said most of GM's problems were "not of our own doing." But while GM insisted others were responsible for its problems, once-loyal customers started switching brands—and even a state-sponsored restructuring might not win them back.

The front of a Chevy Malibu is seen in the parking lot of the St. Anne Catholic Community Church in Warren, Mich., yesterday.
The front of a Chevy Malibu is seen in the parking lot of the St. Anne Catholic Community Church in Warren, Mich., yesterday.   (AP Photo/Mark Carlson)
General Motors, the humbled auto giant that has been part of American life for more than 100 years, will file for bankruptcy protection today.
General Motors, the humbled auto giant that has been part of American life for more than 100 years, will file for bankruptcy protection today.   (AP Photo/Paul Sancya, File)
A Cadillac El Dorado standing outside of New York's Tavern on the Green restaurant in Central Park, circa 1958.
A Cadillac El Dorado standing outside of New York's Tavern on the Green restaurant in Central Park, circa 1958.   (AP Photo/File)
A congressional official says General Motors will file for bankruptcy protection today. The federal government plans to take a 60% ownership stake in the company.
A congressional official says General Motors will file for bankruptcy protection today. The federal government plans to take a 60% ownership stake in the company.   (AP Photo/Paul Sancya, File)
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COMMENTS
Showing 2 of 2 comments
cfbailey
Jun 1, 2009 12:34 PM CDT
Buy a Ford....they did not sell out
gilgordan
Jun 1, 2009 7:59 AM CDT
"it was arrogance that killed the Beast"

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