Car businesses that went WRONG!

Running a car company is no easy feat. It is a cut-throat business where you have to keep on evolving to survive in the market. Over the years, it has evolved a lot, but the problems have persisted. One of the biggest problems manufacturers face is the changing mindset of buyers. So manufacturers have to be on their toes or they can go out of business as bankruptcy is quite common in the auto industry. In today’s article, we will see car companies that have survived bankruptcy recently.

Why nobody buys these cars?

Aston Martin

Aston Martin is an iconic British car manufacturer. The Aston Martin has been a decorated part of the iconic James Bond series. Surprisingly, this luxury carmaker has survived seven bankruptcies in its history. More recently, it went into a state of bankruptcy after its listing at the London Stock Exchange. It was helped by Canadian investor Lawerence Stroll buying a 25% stake in the company.

Jaguar & Land Rover

Jaguar & Land Rover is another luxury brand on our today’s list. The brand has seen its fair share of financial problems. In 2008, the brand was near bankruptcy when Tata Motors acquired it from Ford. The acquisition was completed on 2nd June 2008 at a cost of 1.7 billion dollars.

Car companies – SsangYong Motors

Court receivership is not new for SsangYong Motors. It was in court receivership in 2019 when Mahindra bought it for $463 million (Rs 3445 crore). But the partnership has been far from ideal for both brands. In 2020, Ssangyong filed for bankruptcy as Mahindra cut funding due to its outstanding debt. In January 2022,  South Korean courts approved the Edison Motors acquisition plan, although the company would be kept in receivership until the transaction is completed.

Car companies – General Motors

The 2008 financial crisis impacted a lot of companies. General Motors, once the largest car manufacturer in the world, filed for bankruptcy and had to be bailed out by the government. The USA government invested $49.5 billion and recovered $39 billion when it sold its shares on December 9, 2013. In July 2009, after 40 days of bankruptcy protection, the company emerged from the Government-backed Bankruptcy chapter. 

Where are car factories in India?

Chrysler

General Motors wasn’t the only carmaker to file for bankruptcy during the Great Recession. On April 30 2009, Chrysler filed for chapter 11 bankruptcy. Chrysler took $12.5 billion in government assistance & repaid the US treasury $11.2 billion. In 2014 Fiat bought Chrysler making it Fiat Chrysler automobiles.

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