by Chen Yu

    HOUSTON, June 1 (Xinhua) -- General Motors, one of the once dominant "Big Three" American automakers, on Monday filed for Chapter 11 bankruptcy in the largest such case in U.S. industrial history.

    Why did the 101-year-old manufacturing icon, which had been the world's largest automaker for 77 years and had weathered numerous market fluctuations over the past century, succumb to bankruptcy so easily?

The logo of General Motors Corp. (GM) is seen in front of the GM headquarters in Detroit, the United States, April 15, 2009. The largest U.S. automaker, General Motors Corp., officially filed for bankruptcy protection at 8 a.m. EDT (1200 GMT) on Monday, the largest bankruptcy protection case in the U.S. industrial history. (Xinhua/Gu Xinrong) Photo Gallery>>>

    Many analysts believe that even before the financial crisis dealt GM a fatal blow, the manufacturer was sailing in troubled waters. They say that mismanagement, insensibility to market demand and customer needs, failure to innovate, and high production costs had already robbed GM of its ability to recover.

    Compared with its Japanese competitor Toyota, GM just made too many mistakes for too long, according to an article in U.S. magazine Business Week.

    Bad management is largely responsible for GM's fate. Company managers seem to have wasted too much money while Toyota, which overtook GM as the world's No.1 automaker in 2008, invested heavily in technology and vehicles.

    Some say GM's failure was partly due to legacy expenses such as the high cost of pensions and health care that Toyota does not pay. Others, however, argue that GM might have solved those problems had its executives planned for them years ago and used their money wiser.

General Motors CEO Fritz Henderson speaks at a news conference following GM's bankruptcy filing, at the GM Building in New York, June 1, 2009. General Motors Corp filed for bankruptcy on Monday, forcing the 100-year-old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership. (Xinhua/Shen Hong) Photo Gallery>>>

    During the 1980s, rather than seed its pension fund or invest in better car models, Chairman Roger Smith spent 80 billion U.S. dollars on automation that did not correct GM's quality problems. He also invested another 8 billion in Hughes Aircraft and software maker EDS.

    Had GM executives spent the 88 billion on cars instead of other things, the company might not have had to blow its savings on restructuring costs.

    If it could use the money today, GM could strengthen its pension fund, seed a plan for retiree health care benefits, and have a larger research and development budget to produce electric cars and improve its passenger-vehicle lines.

    Unlike Toyota, which for years has focused on making cars in line with market and customer needs, GM had been turning away customers with vehicles largely viewed as poorly designed and built.

    Competitors like Toyota introduced environmentally friendly cars and budget vehicles for emerging countries when they aimed to take the industry lead.

    GM, meanwhile, stuck to producing SUVs that helped it dominate in a low-oil-price era but caused trouble as fuel prices soared.

    Analysts say that among the many factors that contributed to GM's bankruptcy filing, its failure to innovate may have been the most harmful.

    Even without such problems as staggering debt and health and pension burdens, it was still almost impossible for GM to rise to its previous glory because of that lack of innovation.

    Today's GM does not have the economy vehicles that could help it win back the mass market nor does it possess the new energy technology needed to lead the car industry in the future.

    A new GM reborn after the bankruptcy of the old GM, then, carries the hope that the automaker will emerge as a smaller but more competitive company.

GM bankruptcy kicks off fast track restructuring 

    DETROIT, June 1 (Xinhua) -- General Motors Corp. drove in the fast lane to revival on the same day of its iconic bankruptcy filing on Monday, signaling the Obama administration's determination and confidence in bringing back the industrial giant. Full story

Obama says U.S. gov't to invest additional $30 bln to help GM

    WASHINGTON, June 1 (Xinhua) -- U.S. President Barack Obama promised on Monday that the U.S. government will invest additional30 billion dollars in GM, which he was confident will emerge from the bankruptcy protection process quickly. Full story

Fritz Henderson says China will continue to be GM's key partner of business

    NEW YORK, June 1 (Xinhua) -- General Motors CEO Fritz Henderson said Monday that China will continue to be a key partner of business of GM.

    Speaking at a press conference in GM's New York building, Henderson said that GM's venture in China is a critical part of GM, saying its business in China in "growing very fast."

    "Our business in China continues to grow very fast, I should say at torrid pace," he said. "And we are very appreciable of that."   Full story

Iconic U.S. auto giant GM declares bankruptcy

    NEW YORK/DETROIT, June 1 (Xinhua) -- In the largest industrial bankruptcy ever seen in U.S. history, General Motors Corp., the top U.S. automaker and once the world's largest corporation, filed for bankruptcy protection on Monday.

    The Detroit-based company, for decades a symbol of American manufacturing supremacy, corporate culture and even lifestyle, filed a Chapter 11 petition to the U.S. Bankruptcy Court for the Southern District of New York early Monday morning.    Full story 

GM decides not to abandon its headquarters in Detroit

    DETROIT, June 1 (Xinhua) -- The largest U.S. automaker General Motors which has filed Chapter 11 bankruptcy will not abandon its headquarters in Detroit's Renaissance Center as part of its restructuring, the Detriot News reported Monday.

    President Barack Obama told Michigan's senior members of Congress during a call Sunday night that GM will remain in the RenCen, despite enticements from the city of Warren to move there, a congressional aide briefed on the matter said. Full story

GM to cut 14 plants by 2012, reaffirming to build small car in U.S.

    DETROIT, June 1 (Xinhua) -- General Motors Corp. announced on Monday that it will close or idle 14 plants in more than two years, just several hours after the troubled carmaker filed for bankruptcy in New York. GM also reaffirmed it will build a small car at one of its U.S. assembly plants as it announced on last Friday.  Full story

GM, hours away from bankruptcy, eyes comeback

    DETROIT, June 1 (Xinhua) -- Many are mourning the iconic collapse of General Motors Corp. as it is just hours away from its bankruptcy filing on Monday. But the once largest company in the world may have been quietly betting on a quick comeback as a leaner automaker.

    As 54 percent of GM bondholders announced their support for a sweetened debt-for-equity offer on Sunday, the GM took another step forward toward a quick exit from bankruptcy protection which the company is expected to file on Monday morning.  Full story

U.S. automaker giant poised for bankruptcy protection

    BEIJING, June 1 (Xinhua) -- The No. 1 U.S. auto maker, General Motors Corp., is poised for bankruptcy protection on Monday as a way to seek a rebirth in the wake of a similar move by its rival Chrysler about one month ago.

    The GM, with a history of more than 100 years, is set to deliver paperwork for its bankruptcy protection at 8 a.m. EDT (1200 GMT), the largest bankruptcy protection case in the U.S. industrial history, said informed sources who asked not to be named.  Full story

GM decides to file Chapter 11 bankruptcy as bondholder deadline passes

     BEIJING, May 31 -- General Motors Corp. president and Chief Executive Officer Fritz Henderson have scheduled a news conference in New York on Monday, when the Detroit automaker is expected to file Chapter 11 bankruptcy, according to media reports Sunday.

    GM's board of directors met for a second day Saturday to make the final decision. The outcome of the meeting could not immediately be determined. GM and the Treasury Department, which has been guiding the Detroit automaker toward a rescue plan that will give taxpayers nearly a three-fourths stake in the company, went into secrecy mode.  Full story

U.S. auto workers' union ratifies GM labor deal 

    DETROIT, the United States, May 29 (Xinhua) -- The United Auto Workers (UAW) union ratified a labor deal with General Motors Corp. on Friday, which will help the largest U.S. automaker to emerge more quickly from a possible bankruptcy.

    The contract was approved with an overwhelming 74-percent vote by its members, the UAW said after a conference at its Detroit headquarters on Friday afternoon. Full story

Special Report:  Global Financial Crisis