Why did General Motors and Chrysler go bankrupt?
General Motors and Chrysler went bankrupt for a variety of reasons. Bad business decisions over several years culminated in an unsustainable business model that was slow to adapt to a dynamic automobile market. Manufacturing was inefficient, and the vehicles that GM and Chrysler produced did not suit customer preferences. Also, government mandates increased production costs (although these applied to all car companies, not just GM and Chrysler), and labor agreements saddled automakers with high labor expenses and considerable legacy costs. The decline in the economy, coupled with a decline in consumer demand, pushed the companies over the edge.
