GM CEO softens on bankruptcy
DETROIT -- General Motors Corp. has softened its opposition to bankruptcy reorganization a little more. "If it's required, that's what we'll do," new chief executive Fritz Henderson said.
GM still prefers to avoid bankruptcy protection while restructuring, Henderson said in an interview broadcast Sunday.
President Obama and his auto industry task force indicated that bankruptcy protection "may very well be the best solution for the company to achieve these goals," Henderson told CNN's "State of the Union."
That is why, he said, "when you look at the situation, we said, 'OK, we'll spend the time to try to complete the work, more aggressive work, outside of the court process, but if it's required, that's what we'll do."'
Obama had said GM's initial plans to become viable didn't go far enough. Last week, he told the company it had 60 days to make more cuts and get more concessions from bondholders and unions, or it won't get any more government help.
The administration forced out Rick Wagoner as chief executive; Henderson took over on March 29.
Henderson said the government's guarantee of GM warranties and its indication that it would lend money to the automaker while it reorganized under bankruptcy protection are both "strong signals which say even if we have to go through bankruptcy, the company's going to be there."
He told NBC's "Meet the Press" that GM needs to "go deeper and we need to go faster" in its restructuring.
"If necessary, we'll go into bankruptcy to get the job done," he said. "Our preference is to get it done outside bankruptcy."
Henderson also said he does not believe the administration should encourage Americans to buy U.S.-made cars.
"I think the consumer should buy exactly what kind of car they think meets their needs and that excites them," he said. "And it's our job to make sure we provide that and as I look at it, not necessarily have it mandated or otherwise encouraged."
Also, Henderson said that unlike Wagoner, he will not work for $1 a year. He is paid $1.3 million, which was cut 30% as part of what he called shared sacrifices at the automaker.
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