GM chief: Automaker might not survive bankruptcy

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GM chief: Automaker might not survive bankruptcy

By Kevin G. Hall | McClatchy Newspapers


WASHINGTON — Facing a March 31 deadline for the government to accept its restructuring plan and provide more taxpayer rescue money, General Motors Chief Executive Officer Rick Wagoner said Tuesday that a forced bankruptcy of the corporate giant could spell the end of the storied carmaker.

Wagoner, at a breakfast interview with a small group of Washington reporters, acknowledged that many industry analysts expect GM to be forced into a form of prepackaged bankruptcy from which it could emerge within months, but he warned that such a move would be risky and could prove disastrous.

"A lot of people who write about bankruptcy I don't think have ever been in bankruptcy. And what I've learned from studying it in detail is that it brings significant risks on and puts things out of the control of the board and management and the controls of other parties," Wagoner said.

He added, "You talk about fast prepacks that could work in 30 or 60 days, and what I've learned is it could work, and it might not work. And if it doesn't, it could mean in the end a long period of bankruptcy, which I believe would result in the liquidation of the company because . . . consumers will shy away from buying vehicles from companies in bankruptcy."

Wagoner and other GM officials have been meeting regularly with members of a presidential task force as well as working with the United Auto Workers union, suppliers and investors to arrange some sort restructuring outside the courtroom.

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