Thursday, December 04, 2008

Nancy must be crying in her Corn Flakes: GM and Chrysler Considering Bankruptcy to Get Bailout

General Motors Corp and Chrysler LLC are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multi-billion dollar government bailout, Bloomberg reported Thursday, citing a person familiar with internal discussions.

In response to automakers' bailout plea, staff for three members of Congress have asked restructuring experts if a pre-arranged bankruptcy -- negotiated with workers, creditors and lenders -- could be used to reorganize the sector without liquidation, Bloomberg said.

Publicly GM CEO Rick Wagoner has said bankruptcy would mean liquidation because consumers would refuse to buy cars from a company that might not be able to back warranties or supply parts. Bankruptcy is "way down the list of options," GM board member George Fisher told Bloomberg yesterday in an interview.

Bullshit. There are plenty of parts for your crappy cars. What about the extended warranties that stealerships love to sell? Could not it be worked out where new cars were covered from day 1 under those?

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