GM Board Would Consider Bankruptcy

Hearings 'more hostile than expected,' says Wagoner

(NEWSER) - Two grueling days of congressional hearings on a bailout for the auto industry were "hostile" and the wait for an answer is "nerve-wracking," General Motors CEO Rick Wagoner told the Detroit News yesterday. GM is ready now to show Congress detailed restructuring plans to convince lawmakers to hand over billions in aid. Legislators are requiring plans from each of the Big Three automakers before they'll agree to a rescue package. More»

Execs say that's 'way down the list,' but Detroit desperate for federal bailout

(NEWSER) - Bankruptcy is officially on the table for General Motors and Chrysler, a source tells Bloomberg. The companies may accept a pre-packaged bankruptcy, which would force the union and creditors to make concessions, in order to get government help. At least three congressmen have had their staffs explore the possibility. GM CEO Rick Wagoner has argued against bankruptcy, saying it would force the company to liquidate. More»

(NEWSER) - The CEOs of the Big Three automakers told the Senate today that a $25 billion bailout of the industry is necessary to prevent "catastrophic" effects on the economy, the New York Times reports. “If the domestic industry were allowed to fail,” said GM's Rick Wagoner, it would mean “three million jobs lost within the first year.” Meanwhile, Chrysler's Robert Nardelli disclosed that his company, like GM, is on the verge of bankruptcy. More»

Legislators strong-arm automaker to keep dealerships, factories open

(NEWSER) - GM might not have realized when it took $58 billion in bailout money that it would now be beholden to members of Congress, who have been acting like 535 new board members as they angle for their constituents' (and their own) interests. Dems and Republicans alike have pressured companies to keep unprofitable factories open, and several have persuaded GM to reverse closure orders on dealerships in their districts. "When GM took federal dollars, they lost some of their autonomy," one GOP congressman tells the Wall Street Journal . More»

Announces program to help unemployed car owners

(NEWSER) - In his first press conference as CEO of foundering GM, Fritz Henderson today made it clear he wasn’t afraid to talk bankruptcy, saying it was now “more probable,” and that he might even decide to declare bankruptcy before his 60 days were up. “We will do it in court, or we will do it out of court, but we will get the job done,” he said. More»