General Motors Co. has included the standard warnings for present and future investors in its 734-page filing to go public.  This includes the many risks that GM faces in the industry like the stability of its supply base, weak sales figures, and changes in regulations to name a few.  Of course, the risks that GM has disclosed almost paint the picture that the American automaker might just face bankruptcy in a year’s time.

The 734-page file also includes the state in which senior management is being paid an uncompetitive salary because of the limitations that comes from the government’s aid to the GM.  There is also the matter of unhealthy financial controls inside the company the negative effects of GM’s deflating dealer body to its market share and sales in the U.S.

According to GM, the sales and market share will suffer when they decide to let go of several brands and cut down their U.S. dealer network.  In 2009, there were approximately 5,600 GM dealers in the U.S.  In June 2010, the figure goes down to 5,200.  The initial plan was to cut down the dealerships by 3,600 to 4,000 in the long run that in 2009, the automaker has ended their franchise deals with over 2,000 dealers. But the new federal law urged GM to revive at least 700 of these terminated dealerships while some were restored through government mandated negotiations.  GM now plans to cut their US dealers to around 4,500 towards the end of this year.