Lingering Effects Of GM Rushed Bankruptcy

Glenn MacDonald has a nice post on Organizations and Markets blog, "Bankrupt Bankruptcy" about the loss of value to GM due to the rushed government forced bankruptcy process.

Specifically, much value was wasted. For example, among car aficionados, there are few brands more revered than the Pontiac GTO; this persists despite the weak offering brought out in 2004. Where is the GTO? On the scrap heap with the rest of Pontiac. A more deliberate bankruptcy would have preserved this value, e.g., by folding parts of Pontiac into Chevrolet.

Read the MacDonald's entire post here.

Glenn MacDonald is the John M. Olin Distinguished Professor of Economics and Strategy at the Olin Business School at Washington University in St. Louis.