GM, Knockin' on Bankruptcy's Door

The future of GM seems to no longer be so unforeseeable as it was one month ago. In fact, the only thing which can surprise is GM not filing for protection. This is even obvious for the company's new CEO, Fritz Henderson, who appears to have been appointed as head of the manufacturer with only one goal in mind: push GM into bankruptcy.

The latest statement made by the CEO comes to support this. On Monday, he once again stated that GM is "more probable" to go the Chapter 11 way, despite the small chance it can restructure outside it, as Reuters reported.

To go even further, GM may be disqualified from the Dow average. According to John Prestbo, executive director of Dow Jones Indexes, GM could join Citigroup in this move. No replacements for the two in the average have been named. "The chain of events involving GM and Citi seem to be marching in a certain direction," Prestbo told Reuters.

But let's give you a taste of what GM's CEO had to say: “I certainly think today that it’s more probable that we would have to resort to a bankruptcy process." He did try to reassure GM's off-shore operations that a bankruptcy in the US would not affect them. "At this point, the analysis is still being done country-by-country,” he added.

GM may go even as far as relocating its Detroit headquarters. After Chrysler's filing for bankruptcy has left only two of the Detroit Three standing, such a move can be nothing but bad news for Detroit.