Auto Workers Fear Deep Cuts in Pensions

(NEWSER) - The man tabbed by President Obama to see General Motors and Chrysler through bankruptcy is leaving the post, the New York Times reports. Though Steven Rattner’s former investment firm is under investigation, it’s unclear if that affected his decision. Treasury Secretary Tim Geithner said today that, with both auto giants emerging from bankruptcy, Rattner is leaving to spend more time with family. He’ll be replaced by Ron Bloom, a top member of the advisory group. More»

Administration triumphs as bankruptcy effectively ends

(NEWSER) - Chrysler finalized its sale of assets to Fiat with a government wire transfer this morning that gave Chrysler $6.6 billion in funds to exit bankruptcy, the New York Times reports. The sale is good news for the Obama administration, which sought an “efficient” restructuring for Chrysler. It may also provide a glimpse into the future of General Motors, also navigating bankruptcy. More»

Most complex filing ever will net hundreds of millions in legal fees

(NEWSER) - GM's expected bankruptcy is bad news for thousands of auto workers, dealers and managers—but a bonanza for the lawyers and consultants orchestrating the most complicated Chapter 11 in history. Bankruptcy specialists who are already billing Chrysler, Lehman Brothers and the US government stand to make hundreds of millions of dollars from GM's restructuring, the New York Times reports. One firm representing GM billed Lehman $55 million for three months' work. More»

Rejection of survival plan means GM may go into bankruptcy as Chrysler emerges

(NEWSER) - The Obama administration is preparing to steer General Motors into bankruptcy next week, sources tell the Washington Post. The restructuring plan, which aims to shrink GM and turn it into a globally competitive automaker, will bring the company an extra $30 billion in federal loans, for a total of $45 billion in government aid. The government has indicated it will take a stake of some 50% of the firm. More»

(NEWSER) - Hundreds of Chrysler dealers are reeling from notices that give them less than a month to close up shop, CBS News reports. "This was a sucker punch for my brother and I," said Rob Engel, who has been selling Chrysler vehicles in New Jersey since the Reagan presidency. "I'm making the transition from shock to anger." With 100 cars on the lot—too many to sell in a few weeks—he may, like Chrysler, have to go bankrupt. More»