GM CEO: Thanks for the Money, I Think We’ll Declare Bankruptcy Now
Now he tells us: GM’s New CEO: Bankruptcy May Be Best Option for Automaker.
General Motors’s new chief executive told CNBC that filing for Bankruptcy may be the best option for the struggling automaker.
In a taped interview to be aired tonight on NBC Nightly News, Fritz Henderson said that because of greater demands from the Obama administration to restructure, GM is considering the bankruptcy option. The auto giant previously had ruled out such a move, saying it would discourage people from buying GM cars.
Henderson’s comments came after President Obama bluntly rejected turnaround plans by GM and Chrysler and demanded that both companies make fresh concessions in order to get more federal aid.
Henderson, who was GM’s president and chief operating officer, was named the new CEO after the government forced the resignation of CEO Rick Wagoner on Sunday. GM’s board is also being restructured.
Henderson told reporters that the company would still prefer to restructure outside of court, but the level of support Washington is offering would help the company quickly restructure through bankruptcy.
Frank says: