Until then, GM gets to work, without Wagoner, and claims a new era has begun for the automotive industry. As we said, the first 60 days of this new era might as well be the last. The US Treasury Department will provide working capital for GM for the duration, in return of a more aggressive restructuring of the company.
"During the next 60 days, GM will address the tough issues to improve the long-term viability of the company, including the restructuring of the financial obligations to the bond holders, unions and other stakeholders. Our strong preference is to complete this restructuring out of court. However, GM will take whatever steps are necessary to successfully restructure the company, which could include a court-supervised process," the company said in a statement.
This is an educated way of saying "we have no idea how this will play out." Since deadline after deadline has come and gone without any conclusion, it is safe to say that GM (and we are sure Chrysler too, but at least they have Fiat as a backup) has no idea what to do.
“The administration has made it clear that it expects GM to expand and accelerate its restructuring efforts. I want the American people to know that we understand and accept this guidance. The road is tough, but the ultimate goal – a leaner, stronger, viable GM – is one we share,” Fritz Henderson, the new GM CEO said.
Meanwhile, the only side that really takes action, the US government, is ready to help GM go into a "surgical" bankruptcy, according to a White House official quoted by Autonews. Analysts have speculated that government might provide the debtor-in-possession financing needed to keep operations running in bankruptcy.
Google News