John D. Stoll and Sharon Terlep report:
General Motors Corp., nearing a federally imposed deadline to present a restructuring plan, will offer the government two costly alternatives: commit billions more in bailout money to fund the company's operations, or provide financial backing as part of a bankruptcy filing, said people familiar with GM's thinking.
The competing choices, which highlight GM's rapidly deteriorating operations, present a dilemma for Congress and the Obama administration. If they refuse to provide additional aid to GM on top of the $13.4 billion already committed they risk seeing an industrial icon fall into bankruptcy.
GM is in desperate need of rapid restructuring, inside or outside the court system. In the skid from 48% market share (late 50's) to today's mid 20s, GM has not shed costs, brands, capacity, and complexity fast enough. They will suck billions from the government each quarter (as they have with their own cash reserves before they ran out) until the restructuring happens.ReplyDelete
I suspect that they have so many dealer/supplier/union contract issues, that only a court supervised restructuring can happen quick enough. I wish it were not true. At least Wagoner is seeing (saying) it now, but it does say much for his leadership to reach this point. Desperately clinging to the power he has left...