GM Will Get a Hand to Go into Bankruptcy

As was the case with Chrysler, GM seems to have no other way out of its predicament than filing for protection. All of those involved are aware of this and, as was to be expected, the US government will help GM do exactly that should its restructuring hit a dead end, U.S. Treasury Secretary Timothy Geithner told Autonews.

"There is a range of ways to achieve this. You saw what we did in the Chrysler context as one way to do it. and if that proves necessary in the GM context, we'll do that. But we're not at the point where we need to make that judgment yet," Geithner said.

Even if rumors have surfaced that the US may have a bigger role to play than just offer sanctuary to the troubled automakers, President Obama said once again that running auto companies is not on his agenda. The Secretary maintains the same position.

"Where that is necessary in the context of this, we're going to try to make sure that we get out as quickly as possible and that our role is limited to protect the taxpayers' interest. "We don't want to be involved in day-to-day decisions at these companies. And it will be a difficult balance to strike, but we'll be able to find the right balance," he said.

How this is going to play out we will see on May 31. It is the date of GM’s deadline, a time when the company will have to present its restructuring results. As we said, they may follow the same path as Chrysler.

"This is not playing by the rules, but the government has shown it's not terribly interested in playing by the rules. I think this will embolden the government to do what they're already contemplating for GM," Peter Kaufman, restructuring expert was quoted as saying by the source.