New trouble for GM

The General Motors announced that lithium ion batteries in its electric car, Chevrolet Volt, exploded while undergoing government crash tests causing doubts about its recent success.

The Detroit, Michigan based General Motors Company, generally known as GM, is the world’s largest automaker by number of vehicles sold. The former General Motors Corporation filed for bankruptcy in 2009 and the new General Motors issued a new public offering in 2010. The auto giant once again regained its title as the world’s largest seller of cars and light trucks and announced that the company is profitable.

GM has an increasingly attractive and profitable line of vehicles. Chevrolet Cruze, a compact car and Equinox, a crossover are recent successes for the company. GM’s redesigned full-size pickups, Chevy Silverado and GMC Sierra, are due out in late 2012 and could account for one half of domestic profits. GM vehicles are selling well in North America and China. European sales are down due to ongoing economic issues in the region.

After the bailout, the U.S. Government owns 30 percent of the company. Its stock market value is $34 billion and holds $33 billion in cash. However, it has an $11 billion of debt and $25 billion unfunded pension and health care obligations.