In 2009, two of America's largest auto firms, General Motors and Chrysler, each declared bankruptcy. This caused much attention to be focused on this industry, its competitive advantages and disadvantages, and its future prospects. The U.S. government invested funds to allow General Motors and Chrysler to emerge from bankruptcy. The fundamental theory of bankruptcy reorganization is that it allows a company a fresh start, a release from contractual entanglements, and a chance to reinvent itself to compete successfully.

Conduct research on General Motors and Chrysler and assess whether the bankruptcy reorganizations of the two companies resulted in a successful reengineering of their business models. Also, write a paragraph for each company describing your expectations as to the global standing of each company in the global auto industry over the next five years.