With almost everybody in the business community expecting General Motors (NYSE GM) to be forced into bankruptcy, let’s review some of the reasons why this icon of American industry has fallen on hard times:

Too many marquees. Currently, GM has at least 7 different brands under their banner (depending on what you count as a brand.) Within each brand are several models, and then each model is further broken down, dependent upon options and other packages.

If you were to break down a count of all the different cars available from GM, you would end up with easily 1,000 or more unique cars. This is absurd. As Henry Ford remarked about Model T, “You can have any color, as long as it’s black.”  You end up with a high-end Chevrolet competing with Buick, or Buick competing with Cadillac. GM is overburdened with too many choices. Choices that often are competing with each other.

A dealer network that is too large. If you travel the main roads of any major city in America, you are likely to find almost as many different GM dealers as you do McDonalds (NYSE MCD) restaurants. GM’s approach to dealerships is nothing short of competitive suicide.

There is no greater area of problem for GM than the actual manufacturing of their vehicles. Within the burden of high paying union jobs and even more expensive fringe benefit packages, you can find the core of the expense nightmare.

The one bright spot on the horizon for GM is that its business in China is growing exponentially, and is making money. Sales in China are up by 31%. They are designing cars that meet the demand of the Chinese market. The next logical step is to build cars in China. A place where labor and benefit packages are more favorable.

The Detroit-based car maker said on April 9th that it expects to double annual sales in China to more than 2 million vehicles over the next five years, with more than 30 new and upgraded models being introduced in that span.

GM makes vehicles in China through two ventures, both of which are backed by SAIC Motor Corp. (SHA 600104) of China. There is some talk of the possibility of Chinese automakers buying GM brands. In addition to China ,GM is also making inroads into the Indian marketplace. It also enjoys success with the Holden brand in Australia. The handwriting is on the wall, GM is gearing up for the outsourcing overseas of its manufacturing of cars.

It will definitely be interesting to monitor the strategy that GM implements. It seems that it is a safe bet that we will see a shift away from the making of some brands of GM cars in the U.S. to their being made in China. GM will also downsize by spinning off several of its current brands such as Pontiac and Saturn.

All in all, we will see a much slimmer GM, with an international business model. Is this too little too late, or will it mark the emergence of a leaner, meaner GM? More importantly, is the American car-buyer ready to purchase a car made in China?