Of the government owning GM to throw it into bankruptcy, they also plan on spliting the company up.
The Obama administration is seeking to ease General Motors Corp into a "controlled" bankruptcy by persuading some creditors to agree to a plan that would divide the company into two pieces, the New York Times reported on Wednesday.
And of course which parts do they want to "split" off from GM? Why the most profitable of course.
use a sale authorized under Section 363 of the U.S. bankruptcy code to sell off desirable assets to a new company financed by the government.
These more valuable assets might include Cadillac and Chevrolet, as well as assets the company needs to run its business, the Times said. (emphasis mine)
And it wasn't the "new" CEO of GM that thought the bankruptcy up, it was our "esteemed" Dear Leader.
"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."
The White House wants the 60-day period for GM and a 30-day period for Chrysler to play out, as announced by the president on Monday, the official said, speaking on condition of anonymity.
Concerning the auto industry, if someone denies a rumor it always turns out to be true. They probably just need those 60 days to get everything in place for their plans, which is now possible since Wagoner is out of the way.
I wonder how they are going to get rid of Ford since they don't have any control over them ....
Good God, when one of the domestic auto industry biggest enemys thinks it's a bad idea for the government to be meddling in GM you know your in huge trouble ...
"They have opened Pandora's box -- the U.S. government has decided they know better than the private company," said Sen. Bob Corker (R-Tenn.) "There is no question that this country is moving down a very different and foreign path. We have crossed this threshold: We own this company and we are telling it what to do."
Posted by Quality Weenie at April 1, 2009 10:50 AM