White House Favors Managed Bankruptcy for Chrysler, GM
By Harry Kimball, Newser Staff
Posted Mar 30, 2009 4:05 PM CDT
Fiat is poised to purchase parts of Chrysler.   (AP Photo)

(Newser) – The Obama administration’s favored plan to rescue GM and Chysler is a managed bankruptcy that would relieve them of their biggest liabilities by splitting the carmakers into “good” and “bad” components, the Wall Street Journal reports. The “good” GM would  comprise profitable brands like Chevy and Cadillac as a standalone concern. The “good” Chrysler would become a subsidiary of Fiat, if that deal is finalized.

The "old GM" would be carry the company's debt as well as tens of billions of dollars in retiree and health care obligations that have hobbled the automaker in recent decades, the Journal says; it would include weaker brands like Hummer and Saturn. At Chrysler bankruptcy would be used to force creditors and labor unions to accept huge reductions.

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Showing 3 of 3 comments
Mr.C
Mar 31, 2009 4:20 AM CDT
is the bad part of GM then going to wither up and die? what becomes of it?
northeast
Mar 30, 2009 11:24 AM CDT
You saw Batman? Remember when he says "Today you get to say 'I told you so'" but Alfred doesn't want to? Yup, pretty much.
NewserHound
Mar 30, 2009 9:29 AM CDT
So after spending Billions of our dollars to try to bail them out, they are going to decide that it is not worth it and kill em anyway. Couldn't we have done this without giving up all those billions, or are our politicians that wealthy that billions do not even make them slow down. These companies are too big and spend too inefficiently to be getting tax payers $$. Besides that, where is the separation of Corporation and government these days???