June 1st: A business day we will never forget…

For us, the Europeans, General Motors is just another big company. For the Americans, it is a part of their lives, their culture and tradition, together with Ford, Chrysler etc. Last Friday General Motors filed for bankrupsy, according to the famous Chapter 11 of the American commercial law. This company, with a successful past and the tens of thousands of employees, “succeeded’ in less than 10 years to become a major problem for the country.
Just some hours before this to happen, Opel and Vauxhall, their famous European brands, were sold to Russians covered by a Canadian company, Magna. So, the board of OPEL will include Russians and Canadians, deciding for the company’s future. If anyone would have told you this news 18 months ago, you would have thought that he has serious mental problems and he should be checked carefully by doctors for his health. Today this is a reality, the “New World” we all experience…
Check the news here:

http://finance.yahoo.com/family-home/article/107137/After-Many-Stumbles-Fall-of-an-American-Giant?mod=family-autos

A lesson for Romanians as well
Is this a lesson for Romanians too? Definitely… And not only for Romanians, for everyone in this world. But as I am in Romania, let me share with you something: General Motors case gives us a valuable lesson: Having money doesn’t mean that you are really intelligent. Having a high position in a company doesn’t mean that you know everything. You always have to prove your capability. In this country, like in many others, people who “found themselves with money” were considered the society’s role models. They were treated like “small gods”, just because (most of the times by coincidence, not because of a strategy) they woke up one morning with millions in their pockets. Spending a lot, showing 0 respect to money, was a key factor so as to show that you are successful and intelligent, unfortunately this was the message that the majority of people believed in.
Now, after endless other examples, we see that the directors of General Motors were simply UNABLE to predict the future, too busy counting their bonuses. Their position didn’t guarantee that they are also competent, intelligent etc. So, as result to all these they completely led their company to chaos and huge debts. Let us think about how many businessmen we saw in Romania, locals and foreigners, who pretended the Gurus of everything and now during the crisis they are simply “disappeared”. Where are their great skills in creating wealth? Where is now their extremely clever mind, which generates very profitable ideas, which no one else can think?
This day will never be forgotten. It will remain as a point of reference, especially for all the ones who forget that success in business is backed up by the results of people in good and bad times. Not only when the sun is shinning, but also when the rain is heavy…