Oh, GM!!!

I'm starting to feel sorry for General Motors (NYSE: GM). Unlike competitors such as Honda (NYSE: HMC) and Toyota (NYSE: TM), it can't seem to interest buyers in its cars without major price breaks. So after retiring the summer's incentive programs, and then suffering a disastrous few weeks of slumping sales, GM -- like its rival Ford (NYSE: F) -- has come up with an exciting new way to woo consumers back.

Markdowns.

No wait, hear GM out. Instead of the gimmicky "employee pricing," which helped the company get some revenues, if not profits, earlier this year, GM is now announcing a "Red Tag" sale. Here's the premise, straight from the GM website: "The price on our tag is the price you pay. Not a penny more.*

That little asterisk sends you to a disclaimer that should be read by one of those fast-talking radio small-print guys: "Tax, title, license, dealer fees, and [other] optional equipment extra.

Overheads @ General Motors (or should we call it as 'Generous Motors'), issues of retirement liabilities, revenue slump and finally the quality of the cars is leading them towards the bankruptcy route. To add to GM's trauma, SEC is also looking into the accounting practices within the organization. Read here.

With all these constants and variables, GM's probability of filing for Chapter 11 has increased in recent past.

Now, the question is...Will GM come out of this rut? Will GM come out of this rut soon enough? Will GM come out of this rut soon enough to re-gain the market share and there credibility. Points to ponder and act accordingly!