How the General Motors Comeback Can Help the U.S. Economy?

For many years, General Motors was at the helm of the U.S. auto industry. Owning an automobile made by General Motors gave people a sense of American pride. Unfortunately for General Motors, its legacy of automobile greatness was threatened as a result of a weakened U.S. economy. General Motors experienced harsh economic times.

The company needed help to prevent its financial ruin. Its help came quick via the United States government. General Motors was one of the several companies that received a financial bailout from the U.S. government. Considering that one of the conditions of the bailout was that executive salaries had within certain bounds of fairness, this also prevented General Motors from hiring top quality people because they could not pay them what they were worth. This had a negative impact on not just General Motors but the economy as a whole. The main question was if the company could recover from its restructuring under bankruptcy protection. It has not taken long for this question to be answered. According to USA Today, in November 2010 General Motors made a smooth return back to Wall Street. It experienced its first quarterly profit in three years. There many skeptics who believe that General Motors' resurgence after a two year hiatus from the market will not help the economy. There has not been a major influx of new jobs but employment has remained stable. I personally believe that, unless auto sales increase tremendously, it is highly possible that General Motors may experience a regression. On the other hand, one good thing that General Motors can be proud of at this point is its electric car, the "Volt." It has recently been announced as a candidate for automobile of the year. According to General Motors, in order to produce more electric and hybrid cars it will hire over 1,000 new engineers and researchers in the next two years. This will surely help reduce Detroit's unemployment rate. General Motors may well go on to defy the odds by being consistently profitable in upcoming financial quarters.
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Matt Krantz, IPO market could profit from GM's comeback, USA Today

Dave Kinchen, Is the Chevy Volt GM's comeback, Connect Mid Michigan