Tuesday, March 31, 2009

Report: Obama believes automaker BK appears inevitable

by Bill McBride on 3/31/2009 09:06:00 PM

Update from Reuters: Obama thinking on GM, Chrysler unchanged -official

"Nothing has changed on this," the official said when asked about a Bloomberg report that the president has determined that a prepackaged bankruptcy is the best way for GM to restructure and become competitive. "This report is not accurate."
From Bloomberg: Obama Said to Conclude Bankruptcy Best Option for GM, Chrysler
President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure ...

Obama also is prepared to let Chrysler LLC go bankrupt ...

“quick and surgical” bankruptcy ... appears to be inevitable ...
This seems like the end for Chrysler. Hopefully GM will emerge as an efficient and competitive (and smaller) automaker.