Since 2004, GM has clearly been a company in trouble. Was GM in a position to best its competitors? Not likely! The following chart illustrates the reckless and risky nature in which this business was being run, as early as 2004:
As we discussed a few months ago, GM and Ford are not value investments that have just gone wrong, as they made almost as little sense as investments then as they do now. While some bankruptices can catch shareholders off guard, this is not one such example - except for the shareholder who does not do his homework.